Minimum Wage in California to Increase to $10 an Hour

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EmpBlog-9.13.2013-moneyinair-kidsAssembly Bill 10 has been passed by the California Legislature and Governor Jerry Brown has already stated that he will sign it.  Once signed, AB 10 will amend Labor Code Section 1182.12 to increase the minimum wage in California. Specifically, the minimum wage would be increased to $9.00 an hour on July 1, 2014, and increase to $10.00 an hour on January 1, 2016.  AB 10 was revised from prior versions which provided for a more gradual increase of wages to $9.25 an hour by January 1, 2016 and which required an annual adjustment based on the California Consumer Price Index thereafter.  In addition, a provision prohibiting any future downward adjustment to the minimum wage requirement was deleted.

The minimum wage hike represents a 25% increase over the current rate of $8.00 an hour.  Following the increases, California will have the highest minimum wage rate in America, assuming other states do provide for significant increases in the near future.  California currently has the eighth highest minimum wage.  The State of Washington has the highest minimum wage at $9.19 an hour.  Only 19 states and the District of Columbia have set minimum wages higher than the federal mandate of $7.25 an hour.