LOS ANGELES – The state Legislature on Thursday approved a proposal to increase the state’s minimum wage to $15 an hour by 2022.
The proposal now moves to Gov. Jerry Brown, who plans to sign it during a ceremony at 10 a.m. Monday in downtown Los Angeles.
“California is proving once again that it can get things done and help people get ahead,” Brown said when a deal with legislators was announced earlier this week. “This plan raises the minimum wage in a careful and responsible way and provides some flexibility if economic and budgetary conditions change.”
Under the proposal, California’s $10-an-hour minimum wage will increase to $10.50 in January 2017, then to $11 on Jan. 1, 2018. The minimum wage will then go up by a dollar in each of the following years until it reaches $15 in 2022, after which it will continue to rise each year by up to 3.5 percent to account for inflation.
Businesses with 25 or fewer employees get an extra year to raise their wage, so that workers will be paid $15 by 2023.
The plan also gives the governor the ability to temporarily halt the raises if there is a forecasted budget deficit of more than one percent of annual revenue, or due to poor economic conditions such as declines in jobs and retail sales.
Government workers who provide in-home health services will receive an additional three paid sick days under the plan.
“One of the most basic elements of our social contract and one of the ideas upon which our society is based is the fundamental notion that if you get a job and work hard you will be able to support your family,” Assembly Speaker Anthony Rendon, D-Paramount, said. “While California’s economy is growing, some of our hardest-working Californians have been left behind. California’s economic benefits must be shared by the people whose hard work is helping fuel our growth.”
The wage hike will affect 5.6 million workers, or about one-third of the statewide workforce, officials said.
The proposal is similar, although slightly slower, than an already-approved increased in the city of Los Angeles minimum wage. Under the city ordinance, the minimum wage will increase to $10.50 on July 1 and eventually reach $15 per hour in 2020, with future increases pegged to the Consumer Price Index.
The same wage hike schedule was also adopted for the unincorporated areas of Los Angeles County.
Republicans and business leaders oppose the statewide minimum-wage hike, arguing it will lead to businesses reducing the size of their workforce or increasing prices to cover the costs of the increased wages.
The Legislature’s votes coincided with a march in Beverly Hills by unionized janitors urging the Legislature to approve the deal — and to ensure the increase benefits immigrants and women workers “who are often vulnerable to exploitation and harassment on the job.”
Labor unions are pushing two separate ballot initiatives aimed at raising the state’s minimum wage to $15 an hour. Backers of one of the initiatives have said they will drop their effort if the Legislature approves the minimum wage hike. Backers of the other initiative said they are waiting until the governor signs the bill before deciding whether to drop their measure.
Related story: Supervisors formally adopt minimum wage ordinance
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Luke says
I’m sure this will be great for businesses. Small businesses will shut their doors and no large companies will be coming to California due to this. Why do people, these days, want a government handout? If you want better than minimum wage then work hard for it. We need to get rid of welfare and section 8.
Luke says
http://www.forbes.com/sites/timworstall/2015/10/23/checking-seattles-15-minimum-wage-look-theres-the-job-losses/#97a7c565da40
It will create less jobs here too
pirrurris says
Here we go. I did not hete the business pwnets complain the whole time they were making profits without raising the minimum wage. Raising the minimum wage is long over due.
Mike says
New york and california, both approve 15 minimum wage.the 2 highest tax states out of 50.now the real reason they approved it………so they can now collect higher payroll taxes from employers and more tax more, now that people are making more.and you all thought is was because they cared about people making a living wage.oh, and both run by liberals.
Mike says
But wont the cost of everything go up?of course it will.so they wont be any better off.everyone who didnt get a raise will have to pay more.
pirrurris says
Don’t be ignorant. The prices have been going up for theast ten years, but not theminimum wage.
Muzzled says
Worked in 2005. Six dollars an hour. Worked in 2015. Earned nine fifty an hour. Working in 2016, earning ten an hour. What were you saying?
Cynic says
I have mixed feelings about this. One may be able to argue that California’s coastal metropolises with their high cost of living should raise the minimum wage to $15. However, I’m afraid this may hurt inland cities such as Palmdale and Lancaster.
pirrurris says
Cynic,so let me get this straight….this whole time, while the people in Lancaster and Palmdale have been working for Edwards, Northrope Gruman, Boeing, lockheed, etc, and making more than tje minimum wage….they were not hurting the the cities of Lancaster and Palmdale…but now that other people are going to get aminimum wage increase, now you are afraid that Lancastet and Palmdale are going to get hury? LOL.
Cynic says
You’re comparing apples and oranges. Skilled labor is compensated at a higher rate because they have specialized skills that few people have, whereas people working in minimum wage jobs are easily replaced. The fact is that higher a higher minimum wage will push businesses to find ways to recoup their increased input costs, whether it be by laying off workers, automation, or higher prices. This is basic economics, not an opinion.
SMHX2 says
About time we give people the opportunity to rise above poverty. A household of two working parents should not live paycheck to paycheck and I can’t even imagine the struggle for a single parent. Let us never forget we have something called “the working poor” and “the working homeless”, this is completely outrageous.
Muzzled says
Birth control is easily available. I’m working two part times to pay for the last of my graduate degree. I eat vegetarian meals every night. Not deprived. Not struggling. Choose your path carefully.
get ready to loose you job says
The working poor will be in the same potion as they are now. As the cost of minimum wage rises, people will be laid off. Prices of everyday products, produce, meats, etc. , will all rise along with these increases. People who work at Carl’s JR., McDonald’s, KFC, Arby’s, at entry level jobs and skill level do not deserve $15 an hour. Go to school and earn this wage. Now everyone who is getting paid above minimum wage now, because of vocational school, some college, years of experience, will make the same pay. This is crap. CRAP! Don’t complain when mass a layoff happens because small business owners can not keep up with increased wages and over inflated prices due to these new wages.
SMHX2 says
I call it BS, people who enjoy le petite riens in life will still fork out a bit extra and that our ecomy will collapse is absurd. People that have a problem with the GRADUAL hike are selfish. Also, working in education I can give you my opinion that a lot of college educated individuals are working for the minimum wage; that’s a fact!
Mike says
Minimum wage jobs used to be a stepping stone for a person to get work experience, while looking to better themselves thru either education or moving up in a company.80 percent of college grads, with a degree, move back home, because no jobs.but these are the jobs obama created.where is the extra money for payroll going to come from?from everyone.inflation is already out of control, some a few more bucks, for everything shouldnt matter.go back 8 years and look up what you were oaying, compared to now.