On September 28, 2023 , Governor Newsom signed Assembly Bill (AB) 1228, completing the agreement reached between business and labor in early September regarding the FAST Recovery Act.

On September 11, 2023, the coalition of California businesses announced its agreement with labor unions to withdraw their referendum challenging Assembly Bill (AB) 257, which created the FAST Recovery Act, from next year’s ballot.

AB 1228 repeals the FAST Recovery Act but establishes a modified version of the Fast Food Council (Council) until January 1, 2029. The bill further outlines the Council’s objectives, responsibilities, and constraints in relation to setting an hourly minimum wage and overseeing the adoption and evaluation of health, safety, and employment standards for the fast food restaurant employees.

However, there are carve outs for standards created by the Council under certain situations covered by a valid collective bargaining agreement.

The bill also sets forth the minimum wage increases for fast food workers, with an increase to $20.00 effective April 1, 2024. Thereafter, minimum wage for fast food workers shall increase annually on January 1.

If you have questions about AB 1228, or related issues contact a Jackson Lewis attorney to discuss.