Posts in Minimum Wage
Are At-Home Kitchens the Future of Fast Food in SoCal?

Los Angeles county is trying something new to enable cooks and bakers to operate their own little restaurant by allowing them to prepare food in their own home. Starting on November 1, 2024, Los Angeles will begin a new program called the Micro-enterprise Home Kitchen Operation (MEHKO). This program will be available in all of Los Angeles County except for Pasadena, Long Beach, and Vernon because these cities have their own health departments.

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Small Business Procurement and Contract Act Expanded to Include Illegal Immigrants’ Businesses

The new California law, which was recently signed by Governor Newsom on September 22, 2024, explicitly states that the California Small Business Procurement and Contract Act is a state law that provides assistance and services for all persons regardless of their immigration status. California has now affirmatively provided eligibility to aliens. Yes, now even small businesses and micro businesses owned by illegal aliens can receive these benefits.

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New Federal Law Allows More Exempt Employees to Receive Overtime Compensation

The new rule, which took effect on July 1, 2024, requires that any salaried workers who earn less than $43,888 (or $844 per week) are entitled to overtime pay for any hours worked beyond 40 hours per week. Under the new rule, the threshold will increase for the first time on January 1, 2025 and will be scheduled to increase every three years thereafter. On January 1, 2025, any salaried employers who earn less than $58,656 a year (or $1,128 per week) will be entitled to overtime pay. In creating a higher threshold, the Department of Labor estimates that approximately $4 Million previously exempt workers will be eligible for overtime pay.

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California Employers Beware: Potential New Law Gives Employees the “Right to Disconnect.”

If you think California has been making it harder and harder for employers to operate in the state, you may have one more draconian law to deal with soon. California is proposing a new law which gives employees the right to disconnect from all communications from their employer during their non-working hours. The only exception where an employer can contact employees during their non-working hours is during an emergency or an immediate scheduling issue. If you run a business, you know that many unforeseen events and many questions arise during the course of a business day - some of which can be solved with one simple phone call or text. This potential new law does not create clear boundaries. Instead, it creates many more questions that have been left unanswered. It also fails to take into account the practical way in which businesses are run, how issues are resolved, and the situations in which employees have a chance to even work overtime hours.

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Employers Cope with the Implementation of California’s $20 Fast Food Minimum Wage.

California’s mandatory $20 minimum wage for fast food workers is already changing the way fast food chains operate. Business owners could have predicted the immediate outcome of California’s infamous $20 fast food minimum wage: rapidly rising prices of fast food and the mass layoff of fast food workers was no surprise. The fallout in the California fast food industry has begun and we are only seeing inklings of the fast food industry’s future. For fast food restaurants and their owners, the simultaneous increase in the 1) worker’s hourly rate, 2) manager’s salary, 3) price of menu items, and 4) price in groceries can be a difficult (if not fatal) balancing act.

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California Implements Last Minute Exemptions to the $20 Fast Food Minimum Wage.

After some confusion regarding the new $20 fast food minimum wage law, California created some last minute exemptions to help clarify which restaurants are required to pay the new minimum wage. However, the last minute exemptions are narrowly tailored, and the new minimum wage likely applies to most fast food restaurants in California. On a practical level, these narrow exemptions will likely have little impact on the cost of labor for employers. For example, if workers are doing the same jobs at both an airport McDonald’s and a stand-alone McDonald’s, there is little incentive for the workers to continue to work at the airport for less pay. Clearly, a pay increase will likely occur across all facets of the fast food industry.

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