Issue Hub
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According to the California Department of Industrial Relations, “AB 1228 is a new law in California, which added sections 1474, 1475, and 1476 to the Labor Code and does two main things. First, it increases the minimum wage for “fast food restaurant employees.” Second, it establishes a Fast Food Council, which is empowered both to make future increases to the minimum wage and to adopt other minimum employment standards for fast food restaurants.”
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According to “Protect Our Local Restaurants”, LA restaurants are already struggling to survive the state’s new $20/hour minimum wage for fast food workers. and other growing operating costs. Now, the City of LA is considering an additional unnecessary, duplicative and costly ordinance that unfairly targets local restaurants and would further increase food costs for families already struggling.
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The ordinance would bump the minimum wage of Los Angeles hotel and airport workers to $30 an hour by 2028.
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The proposal would increase the minimum wage to $25 an hour for hotel, event center, and janitorial service workers in the tourism sector. If approved, the ordinance would go into effect Jan. 1, 2026.
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Supervisors Betty Duong and Susan Ellenberg asked that the ordinance cover “core worker rights topics” including wages, benefits, sick time, parental and family leaves, workplace safety, whistleblower rights, workers compensation and harassment and discrimination laws.
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The City of Santa Cruz approved a two-cent per ounce tax on sugar sweetened beverages, including soft drinks and iced teas. While currently in effect, the tax measure as passed in November 2024 is currently in litigation.
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State Legislature Issue Monitoring
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Creates a youth apprenticeship program for quick-service restaurants with a $1,000 per apprentice tax credit. Franchisees could reduce teen employee turnover and earn tax relief by participating.
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Provides a $12,000 tax credit to qualified fast food franchisees starting in 2026. Direct financial offset for wage increases and cost pressures—designed to support operators.
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This bill imposes rigid timelines for wage claim investigations and introduces a 30% administrative fee on awards. It substantially increases liability for franchisees and could incentivize a surge in employee claims, including those that are contested or minimal in scope.
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Authorizes employees to pursue wage penalties directly through civil court, bypassing the Labor Commissioner. This creates dual legal pathways and increases the likelihood of litigation, settlements, and associated legal costs.
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Permits employees to refuse work they subjectively deem unsafe, while requiring continued compensation. This undermines scheduling reliability and creates exposure to abuse of the provision during peak operating hours.
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Expands pay data reporting to include sensitive demographic categories and permits public release of anonymized employer reports. Though anonymized, the data could lead to reputational risk, misinterpretation, or targeted scrutiny.
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Regulates workplace surveillance by requiring advance notice to employees, restricting the use and sharing of worker data, banning certain surveillance technologies, and enforcing penalties for violations. This bill would make it harder and more expensive to use surveillance tools that help manage staff, prevent theft, and improve efficiency.
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Prohibits employee monitoring in off-duty areas and establishes per-employee penalties. Could jeopardize the use of common security cameras in back-of-house areas unless carefully reconfigured.
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Mandates online publication of Labor Commissioner decisions and unpaid wage orders. Could increase reputational exposure for franchisees involved in wage disputes, even if under appeal.
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Requires employers to annually notify employees of their rights, mandates educational videos, ensures emergency contact notification if an employee is detained, allows contacts to claim unpaid wages, and imposes penalties for noncompliance.
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Links workers’ compensation wage calculations to federal Cost of Living adjustments, likely raising long-term payout levels. This could elevate WC costs across franchise locations over time.
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Offers a 40% wage tax credit for hiring formerly incarcerated individuals within one year of release. Franchisees benefit from tax savings when hiring second-chance workers—a potential recruiting pool amid labor shortages.
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Allocates $100M for emergency recovery grants to small businesses after state-declared disasters. Offers financial relief to franchisees hit by earthquakes, wildfires, or public emergencies.
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