California Governor Gavin Newsom signed a flurry of new bills at the end of the legislative session, including numerous bills that will impact employers across various industries across the state.
Some of the key changes impacting California employers are described below. Each bill is detailed, and compliance may require guidance from counsel to better understand and implement changes. Employers are encouraged to reach out to counsel regarding these legislative changes, as many of them take effect January 1, 2024.
Governor Newsom signed AB 1228 on September 28, 2023. AB 1228’s primary purpose is to create a Fast Food Council and to set the minimum wage for workers in the fast food industry at $20 an hour effective April 1, 2024. This is a first-of-its-kind law.
The Impact of AB 1228
The Fast Food Council will, beginning January 1, 2025, establish annual increases in the minimum wage for covered employees until 2029 using a formula supplied by the statute. Specifically, the council will establish an increase in wages by no more than the lesser of the following: (1) 3.5%; or (2) the rate of change in the averages of non-seasonally adjusted US Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Notably, the council may set minimum wage standards that vary by region within the state.
The law applies to chains of “limited-service” restaurants (e.g., fast food and fast casual concepts) that are part of a...
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