Fast food restaurants are a cornerstone of American dining, offering quick and convenient meals. But with new regulations and evolving consumer preferences, it’s essential to stay informed. At larosafoods.com, we provide the latest insights into the fast food industry, helping you make informed choices and discover healthier options. Explore our website for delicious recipes and nutritional tips to balance your diet while enjoying your favorite fast food treats.
1. What is AB 1228 and How Does it Impact Fast Food Resturants Employees?
AB 1228 is a California law that significantly impacts fast food restaurants by increasing the minimum wage for employees and establishing a Fast Food Council. According to the California Labor Code sections 1474, 1475, and 1476, the law focuses on enhancing the working conditions and compensation for fast food restaurant employees. This landmark legislation aims to improve the quality of life for workers in the fast food industry.
1.1 Key Provisions of AB 1228
AB 1228 primarily does two things:
- Minimum Wage Increase: It mandates a higher minimum wage for “fast food restaurant employees.”
- Fast Food Council Establishment: It creates a Fast Food Council empowered to make future minimum wage increases and adopt other minimum employment standards for fast food restaurants.
2. When Did the Minimum Wage Increase Take Effect for Fast Food Workers?
The minimum wage increase mandated by AB 1228 took effect on April 1, 2024. As of this date, all “fast food restaurant employees” covered by the new law must be paid at least $20.00 per hour.
2.1 Ensuring Compliance
- Mandatory Posting: Employers covered by the new law are required to post a supplement to the minimum wage order.
- Availability of Supplement: The Supplement to the minimum wage order is available here. Wage Order 5 and Wage Order 7 were also updated in March 2024 due to AB 1228.
3. Can Employers Increase Meal or Lodging Credits to Offset the Minimum Wage?
No, employers cannot increase the amount of meal or lodging credits to count toward the minimum wage under the Industrial Welfare Commission Orders. AB 1228 did not authorize additional credits to the minimum wage, meaning fast food employers can only credit the amounts allowed by the statewide minimum wage.
3.1 Understanding Credits
- No Additional Credits: AB 1228 specifically prevents employers from using additional credits to meet the minimum wage requirement.
- Statewide Minimum Wage: Employers are limited to the credit amounts allowed by the general statewide minimum wage.
4. Can Local Governments Enact Higher Minimum Wages Specifically for Fast Food Employees?
No, cities or counties cannot pass ordinances setting a higher minimum wage solely for fast food restaurant employees covered by this law. However, local governments can set a higher general minimum wage for all employees, which would then apply to fast food employees as well.
4.1 Local Wage Laws
- General Minimum Wage: A city or county can set a higher general minimum wage for all employees, which would apply to fast food employees.
- Specific Employee Groups: Local governments can also set higher minimum wages for specific employee groups, as long as they do not include fast food employees.
Visit Minimum Wage Frequently Asked Questions (ca.gov) for more information.
5. Who Qualifies as a “Fast Food Restaurant Employee” Under AB 1228?
The law applies only to employees of “fast food restaurants” that meet specific criteria. To be considered a fast food restaurant, the establishment must meet ALL of the following:
- Limited-Service Restaurant: The restaurant must be a “limited-service restaurant” in California, meaning it offers limited or no table service, and customers order and pay before consuming their items.
- Chain Affiliation: The restaurant must be part of a restaurant chain with at least 60 establishments nationwide. An establishment is defined as a single restaurant location offering food or beverages. Administrative, warehouse, or preparatory food production locations are not counted towards the 60-establishment minimum.
- Primary Engagement: The restaurant must be primarily engaged in selling food and beverages for immediate consumption.
5.1 Exemptions
Some fast food restaurants are exempt from the law, as outlined in Question 12.
6. How Does Franchise Ownership Affect Coverage Under AB 1228?
AB 1228 applies to employers of “fast food restaurant employees” regardless of whether the employer is the business entity that owns the national brand, or a franchisee or licensee of that national brand.
6.1 Franchise Implications
- Applies to Franchisees: The law covers both corporate-owned and franchised locations.
- Uniform Application: Ensures that all eligible fast food employees receive the mandated minimum wage.
7. What Does “For Immediate Consumption” Mean in the Context of Fast Food?
The term “for immediate consumption” typically refers to food that customers eat at the restaurant, in their car, or shortly after returning home or to work. Food sold to be baked, cooked, or heated at home is not considered for immediate consumption.
7.1 Examples of Immediate Consumption
- Typical Consumption: Eating at the restaurant or shortly after purchase.
- Exclusions: Food that requires further preparation at home is not included.
8. How is Coverage Determined When a Restaurant Sells Both Immediate and Non-Immediate Consumption Items?
You will be covered by the fast food minimum wage if the chain of restaurants is primarily engaged in selling food or beverage items for immediate consumption, meaning it earns more than 50% of its gross revenue from such sales.
8.1 Revenue Calculation
- Primary Revenue Source: More than 50% of gross revenue must come from immediate consumption items.
- Example 1 (Pizza Chain): If a pizza chain earns 30% from “take and bake” pizzas and 70% from fully cooked items, it is covered by the new law.
- Example 2 (Chocolate Seller): If a chocolate seller earns 40% from chocolates eaten immediately and 60% from boxed chocolates, it is not covered.
9. Can Shops Selling Ice Cream, Coffee, or Donuts be Considered Fast Food Restaurants?
Yes, the definition of “fast food restaurant” does not depend on the type of food or beverage an establishment sells. As long as the establishment meets the criteria of being a limited-service restaurant that is part of a chain of at least 60 establishments nationwide and primarily sells items for immediate consumption, it can be considered a fast food restaurant.
9.1 Broad Definition
- No Food Type Restrictions: The law does not specify types of food or beverages.
- Focus on Service Model: Emphasis is on limited service and immediate consumption.
10. Does the Fast Food Minimum Wage Apply to Virtual Restaurants or Ghost Kitchens?
The fast food minimum wage can apply to employees at virtual restaurants or ghost kitchens. Generally, these establishments appear to be “limited service restaurants” because they primarily provide food services to patrons who order and pay before eating, without any table service, with food and drink orders delivered to the customer’s location. If the ghost kitchen or virtual concept restaurant is part of a nationwide chain consisting of at least 60 establishments characterized by standardized marketing, products or services, or if it prepares food that is sold under the brand label of such a nationwide chain, the ghost restaurant or virtual concept restaurant would be covered by the fast food minimum wage.
10.1 Virtual Restaurant Coverage
- Limited Service Model: Ghost kitchens typically operate with a limited service model.
- Chain Affiliation: Coverage depends on being part of a qualifying nationwide chain.
11. What Restaurant Establishments are Exempt from the New Law?
Yes. The following restaurant establishments are not covered by the new law:
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Restaurants that operate a bakery that “produces” and sells “bread” as a stand-alone menu item as of September 15, 2023, and continue to do so are exempt from the new law.
“Bread” is defined as a single unit item that weighs at least ½ pound after cooling and must be sold as a stand-alone item.
The following types of fast food restaurants do not come under the exemption:
- Restaurants that sell bread only as part of a sandwich or hamburger, but not as a stand-alone menu item;
- Restaurants that sell stand-alone items weighing less than one-half pound after cooling, such as most muffins, croissants, scones, rolls, breadsticks, or buns, even if sold as a bundle, but do not sell a single unit of bread weighing at least one-half pound after cooling; and
- Restaurants that do not “produce” bread on the premises of the restaurant location where customers purchase the bread. Producing bread includes making the dough (typically, flour, water, and yeast) and baking it. Baking pre-made dough, i.e., dough that was mixed or prepared at another location, does not constitute “producing” bread at the establishment where the bread is sold.
This exemption applies only to restaurant establishments that produced and sold bread as stand-alone menu items as of September 15, 2023, and have continued to do so.
This exemption does not require that the restaurant be primarily engaged in the sale of bread as a stand-alone item. The exemption may apply even when the sale of bread as a stand-alone menu item constitutes a small portion of the restaurant’s total food sales.
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Restaurants located within a “grocery establishment” are exempt from the new law.
A fast food restaurant establishment is exempt from the new law if it meets both of the following:
(1) The restaurant establishment is located and operates within a “grocery establishment.” The term “grocery establishment” is defined as a retail store in the state that is:
- over 15,000 square feet in size; and
- sells primarily household foodstuffs for offsite consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods”;
- with any sale of other “household supplies or other products … secondary to the primary purpose of food sales.”
Primarily means that the establishment earns more than 50% of its gross income from the sale of household foodstuffs for offsite consumption.
(2) The grocery establishment employer employs the individuals working in the restaurant.
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Restaurants connected to or operating in conjunction with the following locations are also not covered by the law:
- An airport;
- A hotel;
- An event center that is over 20,000 square feet or has more than 1,000 seats (for example, a sports stadium concert hall, or racetrack);
- A theme park;
- A museum; or
- A gambling establishment (for example, a card room)
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Also not covered by the law are restaurants subject to a concession agreement or food service contract if the restaurant is
- In a building or campus primarily used by one for-profit company if the restaurant primarily serves the employees of that company; or
- On public land if the public land is a public beach, park, historic district, or operated by a port authority
11.1 Understanding Exemptions
- Bakeries: Restaurants that operate a bakery that produces and sells bread as a stand-alone menu item as of September 15, 2023, are exempt.
- Grocery Establishments: Restaurants located within qualifying grocery stores are exempt.
- Specific Locations: Restaurants in airports, hotels, event centers, theme parks, museums, or gambling establishments are exempt.
- Concession Agreements: Restaurants subject to concession agreements or food service contracts in specific settings are also exempt.
12. What if I Work in a Fast Food Restaurant Inside Another Store?
If you work for a fast food restaurant inside another store that is not a grocery store and your employer assigns you to tasks both in the fast food restaurant and in the other store, you are most likely covered by the new minimum wage law for fast food restaurants for the hours you work in the fast food restaurant.
12.1 Mixed Roles
- Non-Grocery Stores: If the other store is not a grocery establishment, the “grocery establishment” exemption does not apply.
- Coverage During Fast Food Work: You are covered for the hours you work specifically in the fast food restaurant.
13. What if Coworkers at the Same Chain are Paid Differently?
It is possible for coworkers at the same fast food chain to be paid differently. Even though an employer may have to pay $20.00 an hour to workers at some of its establishments, workers at the employer’s other establishments may be exempt from the law.
13.1 Location-Specific Exemptions
- Bakery Exemption Example: If one location produces and sells bread as a stand-alone menu item, it may be exempt, while another location that does not produce bread on-site would be covered.
- General Minimum Wage: Employees at exempt locations are still entitled to the generally applicable minimum wage.
14. How Does AB 1228 Affect Salaried Managers Who Don’t Receive Overtime?
AB 1228 impacts salaried managers who do not receive overtime. To qualify as an “exempt employee” under California law, you must receive a salary of at least two times the state minimum wage for someone working 40 hours a week and meet other specific requirements. If your salary is less than $83,200 as a fast food restaurant employee starting on April 1, 2024, you are not an exempt employee.
14.1 Managerial Exemptions
- Salary Threshold: Managers must earn at least two times the state minimum wage for a 40-hour workweek to be exempt.
- Minimum Salary: As of April 1, 2024, the minimum salary for exempt fast food restaurant managers is $83,200.
15. How Should Managers Overseeing Both Fast Food and Non-Fast Food Workers Be Paid?
For a manager to qualify as an “exempt employee” under California law, the employer must pay them at least two times the state minimum wage for someone working 40 hours a week, and the manager must meet other specific requirements, including the requirement that the manager must be engaged in exempt tasks for more than 50% of their worktime. If your employee is managing both fast-food restaurant workers and non-fast food restaurant workers, then two different statewide minimum wages would apply to determine the salary threshold for exemption-the fast food restaurant minimum wage for time overseeing the fast food restaurant work and the general statewide minimum wage for the time overseeing workers not assigned to, fast food restaurant work. An employer would have to calculate the blended rate on a weekly basis, based on the percentage of time spent on those tasks.
15.1 Blended Rate Calculation
- Time Allocation: The blended rate is calculated based on the percentage of time spent managing each group of workers.
- Example: A manager who spends 40% of their time overseeing fast food workers and 60% managing other workers would need to be paid $1,408 to meet the minimum salary requirement for exempt status that week.
15.2 Blended Rate Math
For time spent managing fast-food operations: $20/hour x 2 x 40 hour fulltime workweek = $1,600 weekly salary x 40% = $640
For time spent managing store’s other operations: $16/hour x 2 x 40 hour fulltime workweek = $1280 weekly salary x 60% = $768
Blended rate: $640 plus $768 = $1,408 salary for that week.
16. Can Tips Be Used as a Credit Toward the Obligation to Pay the Minimum Wage?
No. An employer may not use an employee’s tips as a credit toward its obligation to pay the minimum wage per hour.
16.1 Tip Regulations
- Tips are Separate: Tips are in addition to the minimum wage.
- No Tip Credit: Employers cannot reduce the minimum wage by the amount of tips received.
17. What Should I Do if My Employer Isn’t Paying the Correct Minimum Wage?
If you believe you are covered by the new law but your employer says you are not and has been paying you less than $20 an hour since April 1, 2024, you have options to pursue a legal claim to recover wages due and possibly related damages and penalties. Your employer will carry the burden of showing they are not covered by the new law.
17.1 Options for Claiming Unpaid Wages
- Legal Claim: An employee can bring a legal claim to recover unpaid wages.
- Burden of Proof: The employer must prove they are not covered by the new law.
17.2 Filing a Claim
Generally speaking, there are three ways to present such a claim:
- Through the Labor Commissioner
- Through an alternative dispute resolution system such as arbitration (if required or allowed under an employment agreement)
- Through a lawsuit in court
Employees pursuing the first option can file an individual wage claim with the Labor Commissioner’s Wage Claim Adjudication Unit, or they can file a Report of Labor Law Violation with the Labor Commissioner’s Bureau of Field Enforcement, which does not pursue individual claims but may investigate and cite the employer.
More information about wage claims and employee rights is available on the Labor Commissioner’s website or from any of the Labor Commissioner’s local offices.
18. Is the Fast Food Restaurant Minimum Wage Used for Garnishment Calculations?
Yes. When calculating the wages exempt from garnishment for a fast food restaurant employee, the party seeking to garnish the wages must use the applicable statewide fast food restaurant minimum hourly wage unless a higher, local minimum hourly wage exists.
18.1 Garnishment Protection
- Minimum Wage Standard: The fast food minimum wage is used to calculate exempt wages.
- Higher Local Wages: If a higher local minimum wage exists, that rate must be used.
19. What is the Fast Food Council?
AB 1228 created the Fast Food Council. The Fast Food Council is composed of appointed representatives from the fast food restaurant industry, fast food restaurant franchisees or restaurant owners, fast food restaurant employees, advocates for fast food restaurant employees, and one unaffiliated member of the public. The Council also has two non-voting members, one from the Department of Industrial Relations and one from the Governor’s Office of Business and Economic Development.
19.1 Council Composition
- Diverse Representation: Includes representatives from various stakeholders in the fast food industry.
- Voting and Non-Voting Members: Ensures balanced input and oversight.
20. What Responsibilities Does the Fast Food Council Have?
The Council will meet regularly to develop new minimum employment standards specific to the fast food industry. These standards could include future minimum wage increases (although these could not occur prior to January 1, 2025) as well as working hours and working conditions to “ensure and maintain the health, safety, and welfare of, and to supply the necessary cost of proper living to fast food restaurant workers.”
20.1 Council’s Scope of Work
- Minimum Employment Standards: Develops standards related to wages, working hours, and conditions.
- Future Wage Increases: Can establish future minimum wage increases, but not before January 1, 2025.
The hourly minimum wage established by the Council can increase every year by either 3.5% or the increase in the consumer price index, whichever is smaller. The Fast Food Council can establish a single statewide minimum wage for fast food restaurant employees or vary the minimum wage by region of the State.
20.2 Public Access
The Council’s meetings will be open to the public, and the Council will take public comment on all action items.
Disclaimer: The FAQs provide general information and are not exhaustive. They do not constitute legal advice regarding your particular circumstances.
For more insights into the fast food industry and delicious, healthy recipes, visit larosafoods.com. We offer a wide range of resources to help you make informed choices and enjoy your favorite foods in a balanced way. Explore our site today and discover the culinary possibilities.
FAQ Section
1. What are the health concerns associated with eating at fast food restaurants frequently?
Consuming fast food regularly can lead to several health issues. Fast food is often high in calories, unhealthy fats, sodium, and added sugars. A study by the University of California, Berkeley, in July 2025, highlighted that frequent consumption of fast food is linked to increased risks of obesity, type 2 diabetes, heart disease, and high blood pressure. Additionally, the lack of essential nutrients in fast food can contribute to nutritional deficiencies.
2. How can I make healthier choices when eating at fast food restaurants?
Making healthier choices at fast food restaurants involves a few strategies. Opt for grilled or baked items instead of fried ones to reduce fat intake. Choose smaller portions and avoid sugary drinks, opting for water, unsweetened tea, or diet soda. Load up on vegetables by choosing salads with light dressings or adding veggies to your sandwiches. Also, pay attention to nutrition information, often available on restaurant websites or in-store, to make informed decisions.
3. Are there any fast food restaurants that offer genuinely healthy options?
Yes, many fast food restaurants are beginning to offer healthier options to cater to health-conscious consumers. For instance, some chains now provide salads with lean protein, whole-grain bread, and healthier sides like fruit or yogurt. It’s always a good idea to check the nutritional information to verify the healthfulness of these options.
4. What are some tips for preparing fast food-style meals at home?
Preparing fast food-style meals at home can be a healthier and more budget-friendly alternative. Use lean proteins like chicken or turkey, whole-grain buns, and plenty of fresh vegetables. Bake or grill your proteins instead of frying them, and use homemade sauces and dressings to control sugar and sodium levels. Explore larosafoods.com for a variety of healthy and delicious recipes that mimic your favorite fast food meals.
5. How does the nutritional content of fast food compare to homemade meals?
The nutritional content of fast food typically pales in comparison to homemade meals. Homemade meals allow you to control ingredients, portion sizes, and cooking methods, resulting in lower levels of unhealthy fats, sodium, and added sugars. A study in the Journal of the Academy of Nutrition and Dietetics found that people who frequently cook at home tend to have healthier diets and lower body weight compared to those who often eat out.
6. Can fast food be part of a balanced diet?
Fast food can be part of a balanced diet if consumed in moderation and with careful consideration. It’s essential to limit your intake of high-calorie, high-fat, and high-sodium items. Balancing fast food meals with plenty of fruits, vegetables, and whole grains throughout the day can help mitigate the negative health effects. Consider fast food as an occasional treat rather than a dietary staple.
7. What are the long-term effects of frequently eating fast food?
The long-term effects of frequently eating fast food can be detrimental to your health. Regular consumption of fast food has been linked to increased risks of chronic diseases such as heart disease, type 2 diabetes, obesity, and certain types of cancer. Additionally, the high levels of sodium and unhealthy fats can lead to high blood pressure and elevated cholesterol levels, further compromising cardiovascular health.
8. How can parents encourage their children to make healthier choices when eating at fast food restaurants?
Parents can encourage their children to make healthier choices by educating them about the nutritional content of fast food and modeling healthy eating habits. Involve children in selecting healthier options, such as salads, grilled items, and fruit. Limit the frequency of fast food visits and make it a special occasion rather than a regular routine. Also, provide healthy alternatives at home to promote a balanced diet.
9. What is the role of fast food restaurants in contributing to obesity rates?
Fast food restaurants play a significant role in contributing to obesity rates due to the high calorie, fat, and sugar content of their offerings. According to the Centers for Disease Control and Prevention (CDC), people who frequently eat fast food are more likely to be obese. The convenience, affordability, and aggressive marketing of fast food contribute to its widespread consumption, exacerbating the obesity epidemic.
10. How are fast food restaurants adapting to meet the growing demand for healthier options?
Fast food restaurants are adapting to meet the growing demand for healthier options by introducing lighter fare, such as salads, grilled items, and vegetarian options. Many chains are also providing more transparent nutrition information, allowing consumers to make informed choices. Some restaurants are also experimenting with plant-based alternatives and reducing the levels of sodium and unhealthy fats in their menu items. These efforts reflect a growing awareness of the importance of catering to health-conscious consumers.
Are you seeking more information on navigating the fast food landscape or looking for healthier alternatives? Visit larosafoods.com for a wealth of resources, including nutritious recipes and expert advice. Contact us at +1 (415) 987-0123 or visit our office at 1 S Park St, San Francisco, CA 94107, United States. Let us help you make informed choices for a healthier lifestyle.
