More Increases in California Minimum Wage

Los Angeles Employment Law Firm for Wage and Overtime Claims

California State Sen. Mark Leno’s proposed bill to raise the minimum wage in California again from $9 per hour to $13 per hour by July 2017 is receiving heavy opposition from Gov. Jerry Brown’s Department of Finance. The SB3 bill, which was recently pushed forward by a 5-2 vote from the Assembly Committee, would include two separate raises in the minimum wage over the next two years from $9 per hour to $11 starting January 1 and then to $13 on July 1, 2017. The Bill also stipulates that the minimum wage would then be tied to inflation starting in 2019.

The Department of Finance has issued a report stating that, should the bill be passed, it will do more harm than good, because it will increase spending in unbudgeted costs to a number of state agencies to upwards of $3.5 billion by 2017. Sen. Leno has addressed these concerns saying that an increase in wages would result in more consumer spending and income taxes that would equal or even exceed any state spending. He has also stated that many of the potential benefits of passing the bill have been omitted from the report.

Opposition to the bill also worry that many California residents may lose their jobs, as the cost to business owners who employ minimum wage workers rises 10 percent when the minimum wage rises to $11 and another 30 percent when the minimum wage reaches $13. Officials in the Department have also expressed concern for tying the minimum wage to inflation in 2019, saying that it could be reckless to do so without knowing the future of the economy.

The official opposition from the office of the Gov. may come as a surprise to some after Gov. Brown himself signed into law a bill back in 2013 that will see the minimum wage increased to $10 starting January 1. Sen. Leno however is not satisfied that this increase will be enough and has said “it should not be legal to pay a sub-poverty wage in California.” While the Gov. has not personally commented on his position regarding the new bill, it is likely that the Department of Finance’s resistance will mean a veto if the bill is passed.

Until this bill is passed, California law dictates that as of July 2015, you are entitled to a minimum hourly wage of $9. Your employer is not allowed to fine you or dock your pay below the minimum wage. You are also eligible to be compensated in many cases for travel and/or standing time. As of January 1, 2016, it is California law that your minimum hourly wage be increased to $10.

Los Angeles Employment Attorneys That Handle Wage and Overtime Claims

Contact the employment attorneys at Los Angeles employment law firm Kesluk, Silverstein & Jacob to discuss your options moving forward if you have been the victim of miscalculated overtime, unpaid earnings, minimum wage violations or other types of wage and overtime claims.