Pasadena's minimum wage rose to $18.57 per hour on Tuesday, July 1, but workers at McDonald's and other national fast-food chains inside city limits are entitled to $20 an hour under a separate state law. The city is now posting enforcement contacts for employees who believe they're being shortchanged.

The $1.43 gap between the two rates matters because some workers may not realize the higher number applies to them. California's fast-food minimum of $20 has been in effect since April 1, 2024, and supersedes the local floor at qualifying restaurants, according to the city's official wage notice updated for the new fiscal year.

The city manager's office confirmed in a July 1 release that the state requirement "applies to all qualifying fast-food businesses operating within Pasadena and supersedes the city's minimum wage when an employer meets the state's definition of a national fast-food chain."

Who qualifies

California's AB 1228 defines a "national fast-food chain" as a limited-service restaurant belonging to a brand with more than 60 locations nationwide. McDonald's, with thousands of U.S. stores, qualifies. So do other major chains operating in Pasadena that meet the threshold.

Bakeries, grocery-store delis, and restaurants inside airports, hotels, museums, and theme parks are exempt under the law.

Tips cannot be used to meet the $20 obligation, and employers cannot increase meal or lodging credits to offset the higher rate.

Posting requirements

Covered fast-food restaurants in Pasadena must display both the city's official wage notice and a supplement to the state minimum wage order, according to the city's posted notice. The city notice must appear in English and in any language spoken by 5 percent or more of employees. Employers are responsible for providing translations.

Enforcement and penalties

The Pasadena ordinance carries criminal prosecution for violations, in addition to civil remedies including reinstatement and back wages, according to the city's official notice. Any adverse action taken against a worker within 90 days of the employee asserting wage rights creates a rebuttable presumption of retaliation, shifting the burden of proof to the employer.

Planning & Community Development Director Jennifer Paige said the ordinance is particularly important for low-wage earners and members of the immigrant community, according to the city manager's release.

How to file a complaint

Workers who believe they are being paid below $20 an hour can contact Code Compliance Manager Jon Pollard at (626) 744-6831 or [email protected]. The National Day Laborer Organizing Network, the city's outreach partner, is reachable through Coordinator Julieta Aragon at (626) 440-1031, at 500 N. Lake Ave.

Workers can also file with the California Department of Industrial Relations.

What comes next

The $18.57 city rate applies for the current fiscal year, through Wednesday, June 30, 2027. The state's Fast Food Council, created by AB 1228, can raise the $20 fast-food wage annually by the lesser of 3.5 percent or the change in the Consumer Price Index. That authority runs through Thursday, January 1, 2029.