AB 1228 took effect on April 1, 2024, meaning fast-food workers across California are now subject to a new $20 minimum wage. Many of the state’s more than half a million fast-food workers will see their wages raised as a result.
AB 1228 was signed into law last fall by Governor Gavin Newsom. Proponents of the bill believe the new play floor is necessary in light of changes to the fast-food industry’s workforce. Whereas in the past fast-food workers were often teenagers trying to earn spending money, nowadays fast-food workers are largely adults trying to support their families. Despite California’s $16 minimum wage, the second highest in the nation, many of these workers still find themselves in search of additional jobs to make ends meet. Critics of the bill, many of whom are franchise owners, have complained that the law will force them to lay off staff and pass on their increased costs to customers. However, researchers have found that, as California doubled its minimum wage over the past decade, wages increased without employment falling. The new minimum wage increase will apply to restaurants offering limited or no table service and which are part of a national chain with at least 60 establishments nationwide, with some exemptions. The law also figures to increase the wages of those outside of the fast-food industry, as employers compete for employees that may now be attracted to the industry’s higher minimum wage.
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On Labor Day, California Governor Gavin Newsom signed AB 257 into law. The bill, also known as the FAST Recovery Act, is aimed at raising wages and improving the working conditions of California’s more than 550,000 fast-food workers by establishing a new state council with the power to set state-wide minimum standards for the fast-food industry. The 10-member council will consist of political appointees from state health and labor agencies, as well as food industry officials, fast food workers, and union representatives. It will have the authority to raise the minimum wage for industry workers up to $22/hour and issue new safety and anti-discrimination rules. The standards set by the council would apply to any chain in California that has at least 100 stores nationwide that share a common brand. AB 257 also improves the collective bargaining power of fast-food workers across California. Currently, wages and conditions in the U.S. are typically negotiated between workers and management at individual companies, often location by location. In these settings, workers frequently lack leverage against their employer. However, under AB 257, fast-food workers throughout California will have representatives negotiating on their behalf to set industry-wide standards. Teukolsky Law would like to congratulate all the fast-food workers, unions, and labor allies that fought and advocated for AB 257. If you are a fast-food worker and believe your employer has violated the law, click here to get in touch with Teukolsky Law. |
AuthorLauren Teukolsky is the founder and owner of Teukolsky Law, A Professional Corporation. Archives
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