Impact of AB 1228 on Full Service Restaurants in Fresno County
In our last blog post, we explored the impact of AB 1228 on limited service restaurants in Fresno County, to see how our region stacked up against the statewide and nationwide effects of this mandate. While AB 1228 raised the minimum wage an astonishing 25% for employees of fast food establishments, employees of full service, sit-down restaurants remain subject to the state’s default minimum wage of $16.50, which was $16.00 when this law first went into effect. However, because these industries share a similar labor pool, it is highly likely that full service restaurants have been impacted by this law as well.
California Fast Food Minimum Wage Mandate, Impact in Fresno County — What the Data Tells Us
Back on April 1st, 2024, the State of California instituted a new law (AB 1228) raising the minimum wage for fast food workers to $20 per hour — marking a 25% increase from the state’s then blanket minimum wage of $16, which went into effect January 1st of that year. What constitutes a “fast food” establishment is generally covered under the NAICS code 733513: limited-service restaurants. These are restaurants that offer no table service, where customers order food and beverages that are paid for prior to consumption, whether it be dine-in, take-out, or delivery. For an establishment to be subject to this law, it must be part of a restaurant chain with at least 60 locations nationwide.