When Assembly Bill 1228 goes into action on April 1, it will make a big change in the fast food industry in California. It has been reported that it sets a base wage of $20 an hour for people who work in this field.
There has been a lot of discussion about this bill. Some people see it as a win for low-income workers, but others say it will be hard on companies, especially those in the restaurant business. Because of the pay hike, big chains like McDonald’s and Chipotle are likely to raise the prices of their food.
Over 500,000 people work in the fast food industry in California, making it a big job. There are still doubts, though, about which workers will be able to get the raise. This is why the California Department of Industrial Relations has created a webpage with a list of frequently asked questions about AB 1228.
A few important points are that the new rule makes it clearer what a “fast food restaurant” is and what it covers. The state’s rules say that a fast food restaurant has restricted service, meaning that customers order and pay before they eat. This makes it different from a sit-down restaurant. Also, the law only affects restaurants that are part of a company with at least 60 locations across the country.
The state’s guidelines also say that businesses whose main job is to do administrative, warehouse, or food preparation work are not counted toward the 60-establishment barrier. But starting Monday, if a restaurant makes more than half of its money from selling food or drinks that can be eaten or drunk right away, it has to pay its workers the new minimum wage.
