California May See Another Fast-Food Minimum Wage Hike—What Employers Need to Know
On February 27, 2025, the California Globe reported another minimum wage hike for the state’s fast-food industry within the next few months. As of early 2025, California’s minimum wage for qualifying fast-food workers is $20.00 per hour—by far the highest of any state in the country. Employers in the fast-food industry should prepare for the potential increase in their costs due to an increase in minimum wage. Here, our California employment lawyer provides an overview of fast-food minimum wage hikes that may be coming soon in our state.
Background: Understanding the Role of the California Fast-Food Council
In recent years, our state has dramatically reformed the regulation of the fast-food industry—particularly as it pertains to wages. The Fast-Food Accountability and Standards Recovery Act (FAST Act) created a regulatory body called the California Fast-Food Council (FFC), which was established to oversee labor standards within the state’s fast-food industry. The FAST Act defines what constitutes a covered employer. Along with other things, the FFC sets statewide policies related to wages and working conditions within the fast-food industry in California.
One of the key responsibilities of the FFC is setting minimum wage standards for fast-food workers. Under recent legislative changes, the council has the authority to determine and periodically adjust the minimum wage for employees working at fast-food establishments that are part of a national chain in California with at least 60 locations nationwide, including franchisees.
Current Law for Minimum Wage: As of April 1, 2024, the minimum wage for fast food workers in California increased to $20 per hour for covered locations.
The FFC Has Schedule Their Next Meeting for Spring 2025
The FFC has the power to update the minimum wage for fast-food restaurants in California to adjust for changes in the cost of living. As stated by the Fast Act, the regulatory body is empowered to make changes to adjust the minimum wage so that it is the equivalent of $20.00 per hour in 2024 —which is when the regulation initially took effect.
As confirmed by the California Globe, the California Fast-Food Council plans to meet in April or May 2025 in order to discuss a proposed $0.70 per hour wage increase for fast-food workers. If passed, it would raise the minimum wage from $20.00 to $20.70. While workers advocate for the increase, citing financial struggles, restaurant owners express concerns about potential impacts on prices and the costs related to employing individuals with this higher minimum wage. As we have seen over the last year following the 2024 increase in the minimum wage in this industry, fast-food prices have increased significantly, and many fast-food chains have laid off a large portion of their workforce due to the increased cost of employment. Employers in this industry should keep apprised of what’s to come following the California Fast-Food Council’s meeting this season.
Get Help From Our California Employment Attorney Today
At Sloat Law Group, APC, our California employment lawyer has the knowledge and expertise that companies and organizations can rely on. If you own and operate any type of fast-food establishment and you have questions about minimum wage requirements, please do not hesitate to contact us today. We represent employers throughout California.
Source:
californiaglobe.com/fr/fast-food-council-approves-motion-to-possibly-raise-state-fast-food-minimum-wage-by-another-70-cents/
