Do Restaurants Need to
Offer Retirement Plans?

Which States Require Restaurants to Offer Retirement Plans?

California (CalSavers) — 1+ employees. Full-service and fast casual restaurants across LA, San Francisco, San Diego must comply. Penalty: $250-$500/employee/year.

Oregon (OregonSaves) — 1+ employees. All Portland, Eugene, Salem area restaurants. Penalty: $100/employee/year.

Maryland (MarylandSaves) — 1+ employees. Baltimore, DC-area restaurants. Penalty: $250/employee/year.

Illinois (IL Secure Choice) — 5+ employees. Chicago-area restaurants. Penalty: $250-$500/employee/year.

New Jersey (RetireReady NJ) — 25+ employees. Covers chains and mid-size restaurant groups statewide.

See all 17 states →

High Turnover & Part-Time Workers: What Restaurant Owners Need to Know

The restaurant industry's high turnover and large part-time workforce creates unique compliance considerations:

• Most state programs allow employees to opt out — high-turnover staff often do
• Threshold counts typically use full-time equivalents — 2 part-time = 1 FTE in most states
• Short-tenure employees (under 1 year) may be excludable under some private plan rules
• A SIMPLE IRA often fits restaurants better than a 401(k) — lower admin, flexible vesting

SECURE 2.0 for Restaurant Owners

Restaurant owners are among the biggest beneficiaries of SECURE 2.0 tax credits:

✅ Up to $5,000/year × 3 years startup cost credits

✅ $1,000/employee/year contribution credits (up to 50 employees)

A Chicago restaurant with 20 employees → up to $35,000 in credits over 3 years. A Los Angeles restaurant with 30 employees → up to $45,000+.

These credits more than cover plan administration costs — meaning compliance is profitable for most restaurant owners.

Cities We Serve

We help restaurant owners navigate retirement mandates across: Los Angeles, New York City, Chicago, Las Vegas, Portland, Denver, Baltimore, Philadelphia, Seattle, Boston, Miami, Houston, and all 17 mandate states.