Home » California Raising Minimum Wage To $15 Per Hour Statewide

California Raising Minimum Wage To $15 Per Hour Statewide

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Last updated on August 29th, 2022 at 03:01 pm

California Gov. Edmund G. Brown Jr. on Monday joined legislators and labor leaders to announce an 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,” said Brown. “This plan raises the minimum wage in a careful and responsible way and provides some flexibility if economic and budgetary conditions change.”

Under the plan, minimum wage will rise to $10.50 per hour on Jan. 1, 2017, for businesses with 25 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 fewer than 25 employees—to California’s economy and allows additional time for these employers to phase in the increases.

The purpose of the plan is to increase the minimum wage over time, consistent with economic expansion, while providing safety valves—known as “off-ramps”—to pause wage hikes if negative economic or budgetary conditions emerge. The governor can act by Sept. 1 of each year to pause the next year’s wage increase for one year if there is a forecasted budget deficit (of more than 1 percent of annual revenue) or poor economic conditions (negative job growth and retail sales).

Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5 percent (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index.

The plan also phases in sick leave for In-Home Supportive Services workers starting in July 2018.

Brown signed Assembly Bill 10 in September 2013 to raise California’s minimum wage 25 percent, from $8 to $10 per hour, effective Jan. 1, 2016. There are approximately seven million hourly workers in California, of which about 2.2 million earn the minimum wage.

Brown was joined for Monday’s announcement by Senate President Pro Tempore Kevin de León, California Labor Federation President Kathryn Lybarger, SEIU United Long Term Care Workers’ Union President Laphonza Butler, Burger King employee Holly Diaz, Sen. Mark Leno, California Labor and Workforce Development Agency Secretary David Lanier, United Domestic Workers of America Executive Director Doug Moore, Teamsters Union International VP Rome Aloise and United Healthcare Workers West executive board member Georgette Bradford.

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