SACRAMENTO, Calif. — California Gov. Jerry Brown recently joined legislators and labor leaders to announce a landmark agreement that makes California the first state in the nation to commit to raising the minimum wage to $15 per hour statewide.
“California is proving once again that it can get things done and help people get ahead,” says Brown. “This plan raises the minimum wage in a careful and responsible way and provides some flexibility if economic and budgetary conditions change.”
California’s current minimum wage is $10 per hour. Under the plan, the state’s minimum wage will rise to $10.50 per hour on Jan. 1, 2017, for businesses with 26 or more employees, and then rises each year until reaching $15 per hour in 2022.
This plan also recognizes the contributions of small businesses — those with 25 or fewer employees — to California’s economy and allows additional time for those employers to phase in the increases.
The governor can act by Sept. 1 of each year to pause the next year’s wage increase for one year if a budget deficit is forecast or if negative job growth and retail sales create poor economic conditions.
Once the state’s minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5% for inflation, as measured by the national Consumer Price Index.
There are approximately 7 million hourly workers in California, of which about 2.2 million earn the minimum wage.
New York could be the next state to pass a $15 minimum wage, according to CNN. Gov. Andrew Cuomo is pushing for such a move as state legislators hash out final details for the annual state budget.
The federal minimum wage for covered nonexempt employees currently stands at $7.25 per hour.
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].