AB 10: Minimum wage: annual adjustments

Overview

Existing law requires that, on and after January 1, 2008, the minimum wage for all industries be not less than $8.00 per hour.

This bill would increase the minimum wage, on and after January 1, 2014, to not less than $8.25 per hour. The bill would further increase the minimum wage, on and after January 1, 2015, to not less than $8.75 per hour, and on and after January 1, 2016, to not less than $9.25 per hour.

This bill would provide for an adjustment to the hourly minimum wage beginning on January 1, 2017, and annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission from adjusting the minimum wage downward and from adjusting the minimum wage upward if the average percentage of inflation for the previous year was negative. The bill would require the Industrial Welfare Commission to publicize the automatically adjusted minimum wage.

This bill would provide that its provisions not be construed to preclude an increase in the minimum wage greater than the formula would provide.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.