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.

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Photo of Laura A. Pierson-Scheinberg Laura A. Pierson-Scheinberg

Laura A. Pierson-Scheinberg is a principal in the San Francisco, California, and Baltimore, Maryland, offices of Jackson Lewis P.C and is the leader of the Retail industry group.

Laura represents employers in labor and employment matters, with a particular focus on traditional labor…

Laura A. Pierson-Scheinberg is a principal in the San Francisco, California, and Baltimore, Maryland, offices of Jackson Lewis P.C and is the leader of the Retail industry group.

Laura represents employers in labor and employment matters, with a particular focus on traditional labor issues, union elections and unfair labor practice charges. She has extensive experience in collective bargaining, from serving as chief spokesperson to developing strategy behind the scenes. Laura’s background includes bargaining for both large and small clients from a local to a national level in a wide range of industries, including, but not limited to, manufacturing, retail and healthcare. When recessive bargaining and labor-management disputes become strikes, she has worked with her clients to develop contingency plans and strike preparedness. She also has experience with government contractors subject to the Service Contract Act.

Photo of Benjamin A. Tulis Benjamin A. Tulis

Benjamin Tulis is a principal in the Los Angeles, California, office of Jackson Lewis P.C. His practice focuses on advice and counsel within the labor and employment law sector. Ben is a member of the California Advice and Counsel resource group.

Ben counsels…

Benjamin Tulis is a principal in the Los Angeles, California, office of Jackson Lewis P.C. His practice focuses on advice and counsel within the labor and employment law sector. Ben is a member of the California Advice and Counsel resource group.

Ben counsels employers on a host of employment issues, including wage and hour laws, leaves of absence, employment-related agreements, incentive plans, independent contractor classifications, exempt/non-exempt classifications, company policies, reductions in force, workplace investigations, employee discipline, litigation avoidance and helping employers address legal developments on the fly as they arise. Ben assists employers with a wide variety of employment-related agreements, including but not limited to employment agreements, confidentiality agreements, commission agreements, incentive plans, contractor agreements, severance agreements, arbitration agreements and various other agreements with employees and third parties. Ben helps employers develop incentive arrangements, including commission arrangements with industry-specific compliance issues.