California Fast Food Restaurant Minimum Wage Bill Will Impact Fast Food Restaurants in Pasadena

As a new state law poised to take effect Monday will raise minimum wages for all fast-food restaurant employees, the City of Pasadena reminded business owners that all other employees working in the city must be paid at least $16.93 per hour.

In a statement Wednesday, the City told the local business community that beginning April 1, all “fast food restaurant employees” in California who are covered by a new law must be paid at least $20.00 per hour.

Assembly Bill 1228 was signed into law on September 28, 2023, by California Governor Gavin Newsom.

While California’s fast food restaurant employee’s minimum wage supersedes Pasadena’s local minimum wage for those covered by the new law, all other Pasadena workers must not be paid less than Pasadena’s current minimum wage of $16.93 per hour.

Furthermore, beginning July 1, 2024, the Pasadena minimum wage will increase to $17.50 per hour for all other occupations regardless of business size. This new wage rate will remain in effect until June 30, 2025, when it will again be adjusted.

In order to be classified as a “fast food restaurant,” a restaurant must meet all of the below criteria:

• Be a “limited-service restaurant” that offers limited or no table service, where the customers order food or beverage items and pay for those items before the items are consumed.
• The restaurant is part of a restaurant chain of at least 60 establishments nationwide.
• The restaurant is primarily engaged in selling food and beverages for immediate consumption.

The hourly minimum wage for fast food restaurant employees may be increased by a state-appointed Fast Food Council beginning on January 1, 2025, at a rate tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers. The Council and its authority expires at the end of 2029.

Questions about enforcement of this new State law should be directed to the California Labor Commissioner’s Office. Information and the address and telephone number of the office nearest you can be found at Dir.Ca.Gov/DLSE/dlse.html or under a search for “California Labor Commissioner’s Office.” The Department of Industrial Relations “Fast Food Minimum Wage Frequently Asked Questions” page can be found at: California Minimum Wage.

For inquiries about Pasadena’s municipal minimum wage ordinances, contact the City Service Center during business hours at (626) 744-7311.