US Restaurant Legal Requirements 2026: California Guide

In short. Running a restaurant in California in 2026 means navigating more overlapping regulatory requirements than almost anywhere else in the country. Federal FDA Food Code as the baseline. California Retail Food Code on top of that. County health department scoring (LA County runs a numeric 0-100 system, not a letter grade). New state laws: SB 68 (allergen disclosure on menus for chains of 20+, effective October 2025) and SB 476 (employer now pays for food handler card training and exam). Plus ACA §4205 calorie labeling for chain operators and FSMA 204 traceability building toward 2028. This guide covers each domain with what actually matters operationally.

The regulatory landscape: who inspects what

Before the obligations, understand the structure. Four overlapping authorities for a California restaurant operator:

An inspector who walks into your restaurant in Los Angeles is from the LA County Department of Public Health, Environmental Health Division. They're inspecting against the California Retail Food Code (CalCode), which incorporates federal FDA Food Code standards and adds California-specific requirements.

Domain 1 — Food safety and health inspection

The FDA Food Code baseline

The foundation is the FDA Food Code 2022 — the model code adopted (with variations) by all US states. Key requirements:

• CFPM (Certified Food Protection Manager) on staff per site — § 2-102.11
• Temperature controls: cold holding ≤41°F, hot holding ≥135°F, cooking minimums by protein
• Date marking TCS food: 7-day maximum from prep date — § 3-501.17
• Cooling rule: 135°F→70°F in 2h, then to 41°F in 4h more — § 3-501.14
• Allergen disclosure on request — § 3-603.11

For a full breakdown of temperature requirements, see FDA temperature requirements for restaurants 2026.

LA County numeric scoring

LA County does not use an A/B/C letter grade system like New York City. It uses a numeric score from 0 to 100, posted publicly in your window:

• 90-100: Generally a clean inspection, no major violations
• 80-89: One or more moderate violations
• 70-79: Serious violations — expect re-inspection
• Below 70: High risk of permit action or closure

The score is calculated by deducting points for violations. Priority Items (most serious — direct food safety risk) cost the most points. Priority Foundation Items (systems and management) cost fewer. Core Items (general maintenance) cost the least.

A C-grade window (below 70 in LA) loses you walk-in traffic before anyone reads your menu. Local data consistently shows 30-60% drop in covers when a low score is visible. That's not a compliance problem. That's a revenue problem.

California CFPM requirement

California law (CalCode § 113947.1) requires that each food facility have at least one Certified Food Protection Manager (CFPM) — someone who has passed an ANSI-accredited food safety certification exam. This isn't optional for restaurants.

Options for CFPM certification: ServSafe Manager, Prometric, Always Food Safe, National Registry of Food Safety Professionals. All ANSI-CFP accredited. See our full comparison at ServSafe vs CFPM certification for restaurants.

Domain 2 — Allergen disclosure (SB 68, effective October 2025)

California SB 68 (signed 2023, effective October 2025) adds new allergen disclosure requirements for food facilities that are part of a chain of 20 or more locations operating under the same name or brand.

What SB 68 requires:

• Allergen information for the 9 FDA-designated major food allergens must be disclosed on the menu or menu board for every menu item
• The disclosure must be accessible to customers before ordering — not just on request
• Format options: allergen listed directly under each item, a legend with symbols keyed to the allergens, or a QR code linking to a menu with allergen information

The 9 FDA major food allergens (FALCPA + FASTER Act):

1. Milk
2. Eggs
3. Fish
4. Shellfish (crustacean)
5. Tree nuts
6. Peanuts
7. Wheat
8. Soybeans
9. Sesame (added by the FASTER Act, effective January 1, 2023)

Note: sesame is the most recent addition. Many operators still have recipe cards and menu specs that don't track sesame. It's a violation under both FALCPA and SB 68 if you're missing it.

Who is affected by SB 68:

• Chains of 20+ locations under the same brand (including franchises)
• CalCode § 114094.5 codifies this requirement

For independent operators (under 20 locations): SB 68's menu disclosure mandate doesn't apply, but the FDA's general allergen disclosure duty (§ 3-603.11 — information provided on request) still does. And allergen tracking for your own staff is non-negotiable regardless — one anaphylactic reaction traced to your kitchen ends the conversation.

For details on building an allergen management system, see California SB 68 allergen menu labeling 2026.

Domain 3 — Food handler cards (SB 476, effective January 2024)

California SB 476 changed the food handler card landscape significantly. Key changes:

Before SB 476: employees paid for their own food handler card training and exam (~$15-25, valid 3 years under CalCode § 113948).

After SB 476 (January 1, 2024):

• Employers must pay for food handler card training, the exam, and any renewal costs
• Training must occur during paid work hours
• Employees cannot be required to get certified before their first day of work
• The 3-year validity and the ANSI-accredited training requirement remain

Practical impact for operators:

• If you've been asking employees to get their food handler card before starting, that practice is now non-compliant
• You need a process to schedule and pay for training within 30 days of hire
• Budget roughly $15-25 per employee for the card, plus the time cost of the training shift

The food handler card (sometimes called a food handler certificate) is distinct from the CFPM certification. Food handler card: required of all food handlers within 30 days of hire. CFPM: required of the manager/PIC, different exam, higher bar.

Domain 4 — Calorie labeling (ACA §4205, chains 20+)

Section 4205 of the Affordable Care Act (ACA) requires calorie counts on menus and menu boards for restaurants and food establishments that are part of a chain of 20 or more locations. FDA enforcement regulations at 21 CFR Part 101.

What's required:

• Calorie count for each standard menu item, displayed on the menu or menu board
• Statement about recommended daily caloric intake (e.g., "2,000 calories a day is used for general nutrition advice")
• Additional nutritional information (fat, carbs, sodium, etc.) available in writing on request
• Covers both dine-in menus and drive-through menu boards

Who's affected: Chains of 20+ locations operating under the same brand. Franchise operators must comply even if individually owned.

For independent restaurants under 20 locations: ACA §4205 doesn't apply. But California has its own menu labeling history — check with your local health department if you're near a threshold or expanding.

Domain 5 — FSMA 204 traceability (deadline 2028)

The FSMA Food Traceability Rule (21 CFR Part 1, Subpart S) becomes fully enforceable by July 20, 2028. It requires enhanced traceability records for foods on the FDA Food Traceability List (FTL) — including leafy greens, shell eggs, nut butters, finfish, shellfish, and fresh-cut produce.

Restaurants affected: Those with $250,000 or more in annual food sales that receive or use FTL ingredients. Most full-service restaurants qualify.

What it requires:

• Capture and retain Key Data Elements (KDEs) at each Critical Tracking Event (CTE) — particularly receiving
• At receiving: supplier name, lot code, product description, quantity, date
• Records retained for 2 years and producible to FDA within 24 hours on request

Start building compliant receiving logs now. Don't wait for 2027 to scramble. For the full breakdown, see FSMA 204 traceability for restaurants 2026.

Domain 6 — Business registration, licensing, and permits

California restaurants need:

• California Secretary of State registration: LLC, corporation, or DBA filing
• Food facility permit: from your county Environmental Health department (renewed annually)
• Seller's permit: from the California Department of Tax and Fee Administration (CDTFA) — required to charge sales tax on taxable food and beverage
• ABC license: from California Department of Alcoholic Beverage Control — required to sell beer, wine, or spirits (Type 41 beer/wine, Type 47 full alcohol)
• City business license: required by most California municipalities
• Building/zoning permits: if you're doing any construction or change of use

California sales tax on food: Generally, food sold for home preparation is exempt. Food sold at restaurants for immediate consumption is taxable (7.25% state base + local additions). Hot food, beverages, and food served with utensils are all taxable. Cold deli items sold separately may be exempt. This distinction is frequently mishandled and generates CDTFA audits.

Domain 7 — Employment and labor compliance

California has the strictest employment law in the US. For restaurant operators:

• Minimum wage: California state minimum wage ($16/hour as of January 2024, $20/hour for fast food chains under AB 1228). County and city minimums may be higher (LA City is $17.28/hour for 2024).
• Sick leave: California requires 40 hours/5 days paid sick leave per year (SB 616, effective January 2024 — up from 3 days)
• Meal and rest breaks: strict rules — 30-min unpaid meal break for shifts over 5 hours, 10-min paid rest for every 4 hours worked. Missed break = 1 hour premium pay per missed break.
• Tip pooling: California allows tip pools with certain restrictions. Managers and supervisors cannot participate in tip pools.
• PAGA exposure: California's Private Attorneys General Act allows employees to sue on behalf of the state for labor code violations. Class action equivalent risk. Take meal/rest break compliance seriously.

Inspection prep — what California health inspectors actually check

A California health inspector from your county Environmental Health division comes in against a standardized inspection form. Priority violations (marked as high-risk) are the ones that cost you the most points:

1. Temperature out of range — walk-in cooler above 41°F, hot holding below 135°F
2. Date marking missing or expired — no labels on TCS food in the walk-in
3. Handwashing violations — no soap, blocked sink, improper handwashing procedure observed
4. Improper cooling — product not cooled by approved method within required timeframes
5. Cross-contamination — raw proteins stored above ready-to-eat food, improper use of cutting boards
6. CFPM not on duty or certification expired — per CalCode § 113947.1
7. Pest evidence — rodent droppings, cockroach evidence, insect infestation
8. Employee illness policy missing — required under CalCode § 113949

Common compliance mistakes in California restaurants

Mistake 1 — CFPM certification expired, nobody noticed. ServSafe certifications are valid 5 years. Set a calendar reminder 6 months before expiration and always have at least two certified managers in case one leaves.

Mistake 2 — SB 476 compliance not updated. Asking new hires to come in with their food handler card is now a wage violation. Update your onboarding process to schedule and pay for it within 30 days of hire.

Mistake 3 — Sesame missing from allergen tracking. The FASTER Act added sesame as the 9th major allergen effective January 2023. If your recipe cards, menu specs, and staff training materials don't include sesame, you're not compliant with either FALCPA or SB 68.

Mistake 4 — No allergen documentation at all for independent restaurants. The SB 68 menu-labeling mandate doesn't apply to single-location operators, but FDA § 3-603.11 requires that allergen information be provided upon request. If a server says "I don't know" and a guest has a reaction, that's a liability.

Mistake 5 — Ignoring FSMA 204 because 2028 feels far away. Receiving logs with lot numbers take five minutes to set up. Building the habit now is much easier than retrofitting your operation in 2027 under deadline pressure.