There is a new Fast Food Minimum Wage effective April 1, 2024.
Under this law all “fast food restaurant employees” who are covered by the law must be paid at least $20,00 per hour. The law also establishes a Fast Food Council, which is empowered to make future increases to the minimum wage and to adopt other minimum employment standards for fast food restaurants.
According to the DLSE, a City or County could not pass a specific minimum wage just for fast food workers above $20 an hour, but could increase the minimum wage for all workers (and thus also fast food workers) above the $20 an hour.
The law only applies if ALL of the following are true:
-The restaurant must be limited service (limited or no table service), you must pay before items are consumed.
-The restaurant must be part of a chain of 60 establishments nationwide.
-The restaurant must be primarily engaged in selling food and beverages for consumption immediately.
This also applies to franchises.
Some Exceptions to the law are those that operate a bakery, or within a grocery store, restaurants within: an airport, a hotel, event center (over 20,000 square fee or more than 1,000 seats), a theme park, a museum, casinos or gambling, company cafeterias, public land.
New Minimum Wage of $16.50 per hour January 1, 2025.
All Employees must generally be paid $16.50 per hour. Please note that many local jurisdictions have higher minimum wages and different professions or types of jobs also have higher minimum wage requirements.
Cities with Higher Minimum Wages:
City of San Jose has a minimum wage of $17.95 per hour as of January 1, 2025.
The City of Santa Clara has a minimum wage of $18.20 per hour as of January 1, 2025.
So, if you are an employer and wondering about whether you wages are up to the legal standard Contact our law firm.
We can review your paychecks for compliance with minimum wage (note that different types of businesses are subject to additional requirements).
