On September 28, 2023, Governor Newsom signed AB 1228 into law, which repealed the FAST Act and implemented new regulations of the fast food industry in California. AB 1228 was amended to reflect the terms of an agreement reached between labor representatives and fast-food companies that was announced on September 10, 2023. We have reported on the terms of the agreement before here, but given the importance of the new law, this Friday’s Five delves into the details of AB 1228 and highlights five key issues of the new law signed by Governor Newsom:
1. Covered employers: AB 1228 applies to national fast food chains, which are defined as “limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services, and which are primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service. For purposes of the definitions in this part, “limited-service restaurant” includes, but is not limited to, an establishment with the North American Industry Classification System Code 722513. Bakeries and grocery stores are exempt from this definition and are not included as fast food restaurants.
2. Minimum wage for fast food restaurant employees: $20 per hour on April 1, 2024. Each year thereafter on January 1, the...
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