Labor & Employment Law Blog

AB 610 lists added Sections (j) and (k) to Labor Code Section 1474, which read as follows:

(j) “Fast food restaurant” shall not include an establishment that on September 15, 2023, operates a bakery that produces for sale on the establishment’s premises bread, as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.

(k) “Fast food restaurant” shall not include a restaurant that is any of the following:

(1) Located in an airport, as defined in Section 21013 of the Public Utilities Code, but excluding any military base or federally operated facility.

(2) Connected to or operated in conjunction with a hotel. For purposes of this paragraph, “hotel” means a residential building that is designated or used for lodging and other related services for the public and includes any contracted, leased, or sublet premises connected to or operated in conjunction with the building’s purpose, or providing services at the building.

(3) Connected to or operated in conjunction with an event center. For purposes of this paragraph, “event center” means a publicly or privately owned structure of more than 20,000 square feet or 1,000 seats that is used for the purposes of public performances, sporting events, business meetings, or similar events, and includes concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers. “Event center” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the event center’s purpose.

(4) Connected to or operated in conjunction with a theme park. For purposes of this paragraph, “theme park” means a commercially operated, admission-based grounds or enclosure featuring amusement park rides of a permanent or semipermanent nature, shows, and attractions that are presented, shown, staged, or offered to the public, along with games, merchandise, and food offered for sale in the park, and any contracted, leased, or sublet premises that are connected to, located within, or operated in conjunction with that park, whether or not an admissions ticket is required for entry.

(5) Connected to or operated in conjunction with a public or private museum, within the meaning of Section 1899.1 of the Civil Code.

(6) Connected to or operated in conjunction with a gambling establishment, as defined in subdivision (o) of Section 19805 of the Business and Professions Code.

(7) A restaurant that is all of the following:

(A) Located in and operated in conjunction with a building, group of buildings, or campus used for office purposes primarily or exclusively by a single, for-profit corporation and its affiliates.

(B) Primarily or exclusively serves employees of that corporation or its affiliates rather than the general public.

(C) Is part of, or subject to, a concession or food service contract covering the building, group of buildings, or campus.

(8) Located on land owned by the state, a city or county, or other political subdivision of the state, that is part of a port district or land managed by a port authority or port commission, a public beach, public pier, state park, municipal or regional park, or historic district, and is operated pursuant to a concession agreement or food service contract.

As such, employers who own and operate the above-specified fast food restaurant locations will not need to comply with the abrupt minimum wage hike set to take place on April 1, 2024.

Employers with questions regarding AB 610 or AB 1228, please do not hesitate to contact the authors or your usual counsel at AALRR for clarification and guidance.

This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. AALRR is not responsible for inadvertent errors that may occur in the publishing process. 

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