California’s $20 Wage: Here’s Who’s Included—and Who’s Not

California raised the minimum wage for some workers in the fast food industry to $20 per hour on April 1, 2024.

Driven by AB 1228, this policy aims to improve the economic circumstances of thousands of workers in one of the most vital and active businesses and marks a significant milestone in the state’s labor laws.

However, who is actually eligible for this raise? This is all the information you require for 2025.

The $20 minimum wage

Fast food employees who fulfill the following requirements are entitled to the $20 minimum wage:

• The business must run a minimum of 60 locations across the country.
• It must provide a uniform menu with shared branding.
• Food for rapid consumption or takeout should be the main focus of the service.
• California must be the location of the establishment.
• This includes those who work in the kitchen as well as cashiers, cleaners, and other restaurant operations.

Who is not included?

Not every employee at a fast food restaurant is eligible for this minimal pay. Later legislation, AB 610, added significant exemptions that bar specific businesses and workers:

• restaurants found inside big-box retailers or supermarkets.
• businesses that are located in hospitals, universities, or airports.
• conventional bakeries that sell baked goods to customers directly.
• family enterprises in which the owner has majority ownership and is actively involved in day-to-day operations.

Additionally, the restaurant is exempt from paying the $20 minimum wage if it is a member of a franchise that does not have 60 sites across the country.

What about other industries?

The general minimum wage in the state, which will be $16.50 per hour for the majority of workers in 2025, is unaffected by this hike.

California has, however, also instituted separate minimum rates for other industries, like healthcare, where certain workers may be paid up to $24 per hour, contingent on the region and type of facility.

What information should employers be aware of?

Businesses that fit the requirements and work in the fast food industry must:

• Make sure all eligible employees receive at least $20 per hour.
• Update your informational posters and payroll systems.
• Respect the extra rules set forth by the Fast Food Council, an organization established to monitor working conditions in the industry.

Financial penalties and labor lawsuits may follow noncompliance with these restrictions.

What advantages does this measure offer?

The goal of raising the minimum wage is to:

• lowering staff attrition in the fast food sector
• Boost the standard of living for employees.
• Establish more equitable standards in a field that has historically paid little.

Additionally, it is anticipated that the action will encourage comparable wage increases in other service sectors.

Learn more and determine your eligibility

Checking if your company is obligated to pay you the new $20 minimum wage per hour is crucial if you work in a California fast food restaurant. The first step in making sure you are receiving just compensation is being aware of your rights.

Additionally, if you are an employer, make sure you abide by the most recent rules to stay out of trouble and keep your workplace competitive and equitable.

About The Author