Dive Brief:
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California is about to become the first state to adopt a $15 an hour minimum wage, according to USA Today.
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State lawmakers and Governor Jerry Brown have agreed to raise the state minimum wage to the $15 mark by 2022. USA Today reports that according to worker group Fight for $15, the move will boost the wages of about 6.5 million California residents (43% of the state’s workforce) who currently earn less than $15. The state assembly is expected to pass the new law in the near future.
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Under the tentative deal the state's minimum wage, which had been raised to $10 an hour at the start of the new year, would increase incrementally over time to the $15 mark, though small businesses would have an extra year to get on board.
Dive Insight:
The article notes that California's current and future governor has the option to temporarily suspend the raises in case poor economic conditions or a large budget deficit occur.
So far, USA Today reports that about a dozen cities have approved bumps in their minimum wages to $15, including Seattle, Los Angeles, San Francisco and several other municipalities in California. Also, New York has a plan already in place to hike wages for fast-food and state government workers.
The debate for employers is whether or not the $15 minimum wage will have a negative impact on business. Paul Sonn, the National Employment Law Project's general counsel, told USA Today that the New York and California situations would “create national momentum for other states to follow their lead.”
However, efforts to raise the federal minimum wage to $10 has been blocked largely by Republicans who, along with others opposed to the trend, believe these state-level increases will actually cost jobs by forcing some businesses to choose technology over workers or completely shut down.
