California‘s increased minimum wage for fast-food workers at companies with more than 60 locations is causing various downstream concerns, one of which is labor competition with schools.

The new $20 minimum wage for fast-food workers went into effect on Monday and raises the floor for wages up $4 per hour from the regular $16 minimum wage for other industries in the state. The Associated Press reported that the boost in wages for fast-food workers is another problem for school districts, which are having a difficult time hiring cafeteria workers.

The Sacramento City Unified School District has made several pay increases in anticipation of the law, bringing pay for food service workers in line with the $20 per hour that fast-food workers get beginning on July 1.

“We are looking not only at competing with districts and comparing with districts. We’re also looking at fast-food places,” said Cancy McArn, chief human resources officer for the district.

Another factor necessitating school districts to staff up and compete with fast-food chains is the state’s universal school lunch law, which began with the 2022-2023 school year. The law requires that all students at public and charter schools in the state may request a free breakfast or lunch, regardless of their family’s income.

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Raising state funds for schools to ensure they can raise wages to compete with fast-food restaurants is complicated by the $73 billion budget deficit the state is dealing with, among other problems.

While wages for fast-food workers have been raised via state law, many employees have seen their hours cut at their workplaces, meaning for some, overall pay is either similar to or lower than it was prior to the law being enacted.