State News
California Minimum Wage To Increase To $9.25
By Camille Sarabia
Jun 6, 2013 - 7:52:36 AM

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CALIFORNIA
—California Representative Luis Alejo has introduced the idea of raising the minimum wage in three steps to $9.25 by 2016. 

 

This rise in minimum wage is the first adjustment in six years and is being done to comply with the cost of living.  Businesses will need to re-figure their checkbooks to account for the $1.25 increase per hour per for each minimum wage employee.

 

A study was released on March 8 and according to the National Federation of Independent Businesses in California their study states, “Enacting AB 10 could result in over 68,000 lost jobs in California in over a ten-year period and a reduction in the real output of $5.7 billion.  More than 63 percent of the lost jobs would be jobs from the small business sector of the economy.”

 

Assembly Bill 10 is proposed to keep those earning minimum wage from sinking further down in the economy.  A full time worker making $8.25 an hour makes about $15,080 a year.  The value of minimum wage has fallen because Congress has failed to keep up with inflation, but at one point the California minimum wage of $8.25 was equal to what $10.50 would be seen as today. 

 

President Obama even addressed the issue in his State of the Union address given on February 12 saying “But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we've put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That's wrong.

 

That's why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher. Tonight, let's declare that, in the wealthiest nation on Earth, no one who works full time should have to live in poverty -- and raise the federal minimum wage to $9 an hour.”



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