In this guide7 sections
Whether California’s $20 fast food minimum wage has been a win or a job killer depends on which study you read: a 2024 UC Berkeley study found pay rose with no job losses, while a 2025 National Bureau of Economic Research paper estimated employment fell about 3% after one year. For workers, the practical question is simpler. If you work at a covered chain restaurant, you are owed at least $20.00 an hour as of 2026, and you have rights if your hours are cut or your pay comes up short.
Key takeaways
- Since April 1, 2024, covered fast food employees must be paid at least $20.00 an hour (AB 1228).
- The law covers limited-service restaurants in national chains with at least 60 locations, including franchises, with some exemptions.
- Salaried fast food managers are exempt only if they earn at least $83,200 a year.
- If you are paid less, you can file a wage claim with the Labor Commissioner or sue, and your employer can’t retaliate.
What the research says
The two most-cited studies reach different conclusions:
- UC Berkeley (September 2024): Researchers at the Institute for Research on Labor and Employment found average hourly pay for fast food workers rose about 18%, the policy “did not affect employment adversely,” and prices rose one time by about 3.7%.
- NBER (July 2025, revised since): Economists estimated fast food employment was about 3% lower after one year than it would otherwise have been in one federal dataset, about 1.5% in another, and about 3.5% after two years.
Economists still disagree about methods and data. Neither study changes what your employer owes you.
Who is covered
According to the Labor Commissioner’s fast food minimum wage FAQ, the $20.00 rate applies to a California “limited-service restaurant” that is part of a national chain of at least 60 establishments and earns more than half its revenue from food and drinks for immediate consumption. Franchisees are covered, and the employer must prove it is not.
Exemptions include restaurants that bake and sell stand-alone bread (under specific conditions), some restaurants inside grocery stores, and restaurants connected to airports, hotels, large event centers, theme parks, museums or gambling establishments.
| Worker | Minimum pay at a covered restaurant |
|---|---|
| Hourly crew, cooks, cashiers, shift leads | $20.00 an hour |
| Salaried manager treated as exempt | At least $83,200 a year, plus exempt duties |
| Tipped employees | $20.00 an hour before tips; tips can’t be counted |
A state Fast Food Council may raise the rate by up to 3.5% or the change in inflation, whichever is less, each year. As of late 2026, no increase had been announced. Compare other local rates on our California minimum wage by city page.
If your hours were cut
California law generally doesn’t require a set number of hours. But if you report for a scheduled shift and get less than half of it, you are generally owed reporting time pay of at least two hours (see reporting time pay). If your hours drop, you may also qualify for partial unemployment benefits from EDD.
Watch for cost-cutting that crosses the line: off-the-clock prep or cleanup, shortened or skipped meal breaks, or managers handling extra work while still classified as exempt below the salary threshold. More on off-the-clock work and meal and rest break premiums.
Example (hypothetical): Marcus works at a franchise of a burger chain with thousands of U.S. locations. He is paid $18.50 an hour and clocks out before closing duties. He may be owed the $1.50 difference for every hour, plus pay for the unrecorded time.
What to do if you’re underpaid
- Save your pay stubs and write down the hours you actually worked.
- Check whether your restaurant belongs to a national chain of 60 or more locations.
- File a wage claim with the Labor Commissioner, or talk to a lawyer about a lawsuit or arbitration.
Your employer can’t cut your hours, fire you or threaten you for complaining about pay or filing a claim (Labor Code §98.6).
Frequently asked questions
Does the $20 wage apply at franchise locations?
Yes, if the brand has at least 60 establishments nationally and the restaurant meets the other requirements.
Is the fast food minimum wage going up in 2027?
Only if the Fast Food Council approves an increase. None had been announced as of late 2026.
Can my employer count my tips toward the $20?
No. California does not allow tips to count toward minimum wage.
My city’s minimum wage is higher. Which applies?
You get whichever rate is higher. Cities can’t set a separate fast food wage, but a higher citywide rate applies to fast food workers too.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. We offer free virtual consultations if you were paid below the fast food minimum wage or lost pay to cut hours. Contact us or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
