FAST Recovery Act Update: In 2022, California passed the FAST Recovery Act.  It allowed fast-food workers to earn as much as $22 per hour.  In response, fast-food employers gathered enough signatures to put the FAST Recovery Act on the 2023 ballot for California voters to approve or disapprove.

While everyone was getting ready for the showdown, fast-food employers agreed to pull the ballot measure in exchange for a different law.  As a result, Governor Newsom signed AB 1228 into law in 2023.

Under AB 1228, fast-food workers saw their minimum wage increase to $20 per hour.  A fast-food council created by the new law will have the power to increase that minimum wage by 3.5 percent or by the increase in the Consumer Price Index, whichever is lower.

The law applies only to large fast-food chains which have at least 60 or more restaurants in the United States.  To qualify as fast-food restaurants, the chains must require upfront payment, prepare food for immediate consumption, and provide little or no table service.

Minimum Wage & Salary-Minimum wage in California is $16.50 per hour for all employers.  Many cities in California require a higher minimum wage than the state.  For instance, the minimum wage in San Diego is $17.25.

Minimum salaries to qualify employees as exempt are twice the statewide California minimum wage.  Accordingly, exempt employees must earn at least $68,640 per year ($16.50/hour x 2 x 2080 hours/year).

Employment Law Office of Ward Heinrichs
4565 Ruffner Street, Suite 207
San Diego, CA 92111
858-292-0792
(858)408-7543 (fax)