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California Fast Food Workers Just Got A $20 Hourly Minimum Wage. How Do You Know If You're Included?

A large group of fast-food workers, many wearing red shirts and carrying red and yellow signs. They appear to be in front of a building.
Fast food workers rally at the state Capitol in Sacramento on Aug. 31, 2023.
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Rahul Lal
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CalMatters
)

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A $20 hourly minimum wage goes into effect today for more than 500,000 fast food workers in California. Employees at fast food restaurants with more than 60 locations nationwide will get the boost, with a few exceptions.

The pay bump is the result of a law signed last year by Gov. Gavin Newsom.

The majority of fast food workers in California are people of color and two-thirds of the workforce are women, according to the UCLA Labor Center. A 2023 study by the nonprofit Economic Roundtable found that an estimated 3,600 fast food workers in L.A. County are unhoused.

"California is very expensive and [fast food workers] are struggling to be able to provide for their families," said Maria Maldonado, statewide director of the California Fast Food Workers Union.

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Maria Franco, a delivery driver and pizza maker at a Los Angeles Domino’s, said her pay will jump from $16 to $20 an hour. She said the raise isn’t enough to go on vacation with her family, but it will help improve her work life, wellbeing, and overall livelihood.

“This will support our families,” she said in Spanish. “Groceries have increased in price, so this will help improve our nutrition and health.”

If you're a fast food worker and you have questions about the $20 minimum wage, we have answers.

Who is getting the raise?

California workers at fast food establishments that are part of a national chain with more than 60 locations. This includes employees at franchise locations.

What counts as a fast food restaurant?

A fast food restaurant is a "limited-service restaurant," where people pay for food and beverages before consuming them, according to the California Labor Commissioner's Office. They have limited or no table service.

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Which fast food workers are excluded?

Employees at fast food restaurants inside grocery stores, airports, hotels, event centers, gambling establishments, corporate campuses, theme parks and museums are not included in the new $20 an hour minimum wage.

Bakeries that only sale bread products are also exempted.

It's unclear exactly why this carveout exists. KQED reported that a "signed confidentiality agreement" makes it hard to discern the details. And Bloomberg News reported last month that Newsom pushed for the exemption to benefit a donor who owns Panera Bread locations. Newsom denied those claims and  recently clarified that Panera Bread is not exempt from paying its workers the $20 hourly wage because its bread dough is not made on-site.

For more details on the bakery rule, see the Labor Commissioner's FAQ.

What do I do if I don't see the bump on my paycheck?

If you believe you are supposed to get a pay bump and did not, or if you need help navigating the new minimum wage or other issues at work, the California Fast Food Workers Union has a hotline. The number is (833) 701-1171.

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