The following comes from an Oct. 30 story in the Willits (CA) News.
Governor Jerry Brown signed AB 10 increasing the California minimum wage from $8 per hour which it has been since 2008, to $9 on July 1, 2014 and to $10 per hour on January 1, 2016….
Support for the bill came from a number of union organizations; the Catholic Conference of Bishops, the Legal Aid Association of California and other legal aid organizations; and the cities of Berkeley, Lathrop and West Hollywood….
Opponents of the bill include a host of chambers of commerce and business associations; the American Farm Bureau plus a variety of farming oriented associations; restaurant and lodging associations; and healthcare and home care associations.
Opponents believe the wage increase will harm the fragility of the economic recovery especially considering the yet unknown impact of implementing the Affordable Care Act, according to the legislative analyst.
“Opponents state that a study conducted by the National Federation of Independent Business found that depending upon the rate of inflation in future years, enacting this bill could result in 46,000 to 68,000 lost jobs in California by 2023, and a reduction in real output somewhere between $4.7-$5.7 billion. Opponents note that the Federation study also claims that the increase in minimum wage might cause employees currently earning above the minimum wage to put pressure on their employer for a raise in order to maintain the wage premium between them and the lowest-earning individuals in the economy, causing this bill to have an emulation effect,” says the legislative analyst. The NFIB is a small business association and lobbying group.
Federal minimum wage has remained at $7.25 since July 2009. Federal minimum wage law only applies to persons employed by businesses doing at least $500,000 in business; or those which do any type of interstate commerce or communications; or those working in state, federal or local governments; hospitals and health care facilities; or preschools. If an employee is covered by both state and federal minimum wage, then the highest wage and benefit is required to be paid.
Each state deals with the issues of minimum wages differently. There are 22 states with minimum wages set at the federal standard. Some states have automatic adjustments to match the federal standard.
There are five states, Alabama, Mississippi, South Carolina, Louisiana and Tennessee, which have no state minimum wage standards. Four states, Arkansas, Georgia, Minnesota and Wyoming have minimum wages lower than the federal standard. Georgia and Wyoming set minimum wages at $5.15; Minnesota at $6.15; and Arkansas at $6.25.
Nineteen states, including California, currently set the minimum wage in excess of the federal minimum. Six states exceed California’s $8 per hour. Washington State has the highest current wage at $9.19; followed by Oregon at $8.95 and Vermont at $8.60. These states, plus four others, have annual cost of living adjustments built in….
To read the entire story, click here.