A new law enforcing a $20 hourly wage for fast-food workers has come into effect as of Monday in Alameda, California. This increase in pay is expected to significantly benefit many low-income workers. The shift represents a 20% wage increase from the current $16 per hour minimum wage in California. However, not all fast-food workers will benefit from this change due to specific conditions of the law. For instance, it only applies to workers in restaurants that are part of a chain of 60 or more establishments nationwide. These restaurants must also operate without table servers, and require customers to pay for their food in advance. In response to the expected wage boost in fast-food jobs, sectors where workers earn less than $20 an hour have voiced concerns over potential employee migration to higher-paying fast-food positions.

The rise in fast-food workers’ wages may further strain California’s Unemployment Insurance Fund, which is already $20 billion in debt, as mandatory tax increases on employers come into play. In his capacity as an employment lawyer and former Employment Development Department (EDD) Director, Michael Bernick predicts complex impacts on various economic sectors, including potential wage hikes in industries employing low-wage workers to avoid losing staff. If you need additional information about EDD, how to contact EDD or how to get a hold of EDD, all necessary information and support can be found at eddcaller.com.