bake - May 2016 - 12

labor front

Wage Hikes in California
California Governor Jerry Brown joined supporters from across
the state on Monday, April 4, in Los Angeles to sign landmark
legislation (passed by both houses of the California legislature
on March 31) that makes California the ﬁrst state in the nation to
commit to raising the minimum wage to $15 per hour statewide.
"California is proving once again that it can get things done
and help people get ahead," Brown said when the deal was
announced. "This plan raises the minimum wage in a careful

Under the plan, minimum
wage will rise to $10.50 per
hour on January 1, 2017,
for businesses with 26 or
more employees.

and responsible way and provides some ﬂexibility if economic
and budgetary conditions change."
Earlier this year, Arizona Governor Doug Ducey spoke out against
Under the plan, minimum wage will rise to $10.50 per hour on

a growing trend by cities and towns to set their own minimum

January 1, 2017, for businesses with 26 or more employees, and

wage rates and other employment mandates for local businesses.

then rises each year until reaching $15 per hour in 2022. This plan
also recognizes the contributions of small businesses - those with

Ducey used his Jan. 11 State of the State address to ask state

25 or fewer employees - to California's economy and allows addi-

lawmakers to "put the brakes on ill-advised plans to create a

tional time for these employers to phase in the increases.

patchwork of different wage and employment laws. "If these
political subdivisions don't stop, they'll drive our economy off a

The purpose of the plan is to increase the minimum wage over

cliff. Ninety-one cities and towns with 91 different employment

time, consistent with economic expansion, while providing

laws isn't local control - it's California-style chaos. These efforts

safety valves to pause wage hikes if negative economic or

are based on the trendy, feel-good policies that are stiﬂing

budgetary conditions emerge. The Governor can act by

opportunity across the nation -- failing everywhere they've

September 1 of each year to pause the next year's wage

been tried. So why would we try them here?"

increase for one year if there is a forecasted budget deﬁcit (of
more than one percent of annual revenue) or poor economic

Last fall, voters in three key November elections resoundingly

conditions (negative job growth and retail sales).

rejected proposals to dramatically increase the minimum wage
in their cities. In Portland, Maine, 58 percent of voters rejected

Once the minimum wage reaches $15 per hour for all busi-

a referendum to raise the wage to $15 an hour, compared with

nesses, wages could then be increased each year up to 3.5

42 percent who supported it. In the small town of McCall,

percent (rounded to the nearest 10 cents) for inﬂation as

Idaho, an ordinance to establish a municipal minimum wage of

measured by the national Consumer Price Index.

$10.25 was voted down, and in Tacoma, Washington a ballot
initiative to increase the minimum wage to $15 an hour also was

Other parts of the country have taken different approaches to

defeated in favor of a $12 wage that would be phased in over

minimum wage increases.

two years.

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