News

Gov. Brown signs $10 minimum wage into law

Gov. Jerry Brown will be in Oakland today, Sept. 25, to mark the signing of a bill to raise California's hourly minimum wage to $10 by 2016.

The wage increase will take effect over the next three years, rising to $9 per hour on July 1, 2014, and to $10 on Jan. 1, 2016, according to the governor's office.

Brown was in Los Angeles Wednesday morning to sign the bill. At noon, he was set to appear at Oakland's Cypress Mandela Training Center, which offers job training programs for Bay Area residents.

"The minimum wage has not kept pace with rising costs," Brown said in a statement. "This legislation is overdue and will help families that are struggling in this harsh economy."

The bill, authored by state Assemblyman Luis Alejo, D-Watsonville, was amended earlier this month to move up the schedule for the wage bump.

The state's last minimum wage increase was in 2008, when it rose by 50 cents to $8 per hour.

California is among many states with a minimum wage above the federally mandated minimum wage of $7.25, but has a lower minimum wage than some states including Oregon, Washington and Illinois, according to the National Conference of State Legislatures.

— Bay City News Service

Comments

Posted by James, a resident of Whisman Station
on Sep 25, 2013 at 2:24 pm


Now we just need a job guarantee. #MMT


Posted by Rich, a resident of Blossom Valley
on Sep 25, 2013 at 2:40 pm

Well, that should give a real boost to youth unemployment. Clearly the best way to get people going on the job ladder is to cut off the bottom rungs so everyone else doesn't have to compete with those pesky up-and-comers.


Posted by Otto Maddox, a resident of Monta Loma
on Sep 25, 2013 at 2:54 pm

Where did they come up with $10 an hour? I'd like to see the study showing $10 is going to make a big difference over the current $8.

Not to mention it doesn't kick-in until January 2016. By then I'm sure people will be complaining that $10 isn't enough.


Posted by Why does govt need to be in every aspects of our life?, a resident of Monta Loma
on Sep 25, 2013 at 3:33 pm

Is it the govt that will pay for the extra $2? If not, expect to put an extra dollar on your bill now. Will the food taste better? NO. Instead the meat will get smaller. Remember, where is the beef commercials?

If the Govnor want's to help the people, then reduce our taxes, by eliminating some of the 500+ useless gov agencies we have now.

Interesting how easy it is for govt to decide how companies pay their employees.

The way I look at it, if you don't like the pay, get a better job.

And if you have an 8 dollar paying job and get fired, you know who to point the finger at. And if you get a raise to 10 dollars, guess what, you will have to make up for the guy that got laid off.



Posted by Jac, a resident of Cuesta Park
on Sep 25, 2013 at 3:45 pm

Why don't they just index it to inflation and not have these occasional political battles?


Posted by fightWageSlavery, a resident of Old Mountain View
on Sep 25, 2013 at 9:03 pm

This is long overdue. I agree that it should be indexed with inflation, although with some sort of caps to avoid an economic meltdown if we have a big surge of inflation.

So many "conservatives" (which seems to be defined as dumb or greedy) complain that this will destroy the economy, but it never has. Study after study shows that if you increase the minimum wage modestly, then the business climate adapts. Even better, what do minimum wagers do when they get a raise?? They SPEND it! Which stimulates the economy, which expands business and opens up more jobs--> increases employment! Trickle-up economics..or Trickle-across! (As opposed to trickle down economics which has never helped the economy.)

It's so tiring to hear all of the 'better dead than red' folks who keep beating their drum of doom. Yet we keep marching on...


Posted by ron, a resident of another community
on Sep 26, 2013 at 8:05 am

@fightWageSlavery:

It cracks me up when some "expert" who's obviously never run a small company or business tells other people they're dumb.

1) Let's a do a little math: Suppose there are 10,000 small businesses in CA that were going to hire 2 people each, but now since you've raised the cost of headcount by 25%, on the average they each decide to now only hire one. That's 10,000 people that could have been hired that are now not being hired. If you've ever run a restaurant or other small business, the two highest fixed costs are headcount and rent. You've just raised one by 25%. Yes, the business climate adapts but it will do so by trying to figure out how to do more with fewer employees.

2) I can tell you've never hired or managed people because you'd know how true the saying is: "It's hard to find good help." So, you decide to hire a new person at your restaurant at the now increased rate of $10/hour. You invest a full week of your time training them not to mention paying them to get trained. After another week or so, they start showing up late and getting sloppy on the job or have a bad attitude. You tell them they need to improve and they just bail. You've now paid even more and wasted your time on someone who interviewed well, but just wasted your $10/hour and produced no value. By increasing the starting wage, you are increasing the risk the employer needs to take when trying out someone new. Many will be very reluctant to hire anyone who is has no track record.

3) If you are the owner of the store, you only get paid after you take out all the operating costs and COGS from your total sales. You work like a dog to keep things going and now you are forced to decrease your own pay or raise prices. I'm sure you think all store owners are Scrooges that laugh all the way to the bank, but most just get by. You won't get it until you have your own business. Do it. Invest in and run your own business. I dare you.

If you can't even do the basic arithmetic of running a business, and conservatives and business owners are "dumb", what does that make you?


Posted by Old Ben, a resident of Shoreline West
on Sep 26, 2013 at 10:01 am

So tell me how your neat little theory applies to fast food joints and outfits like Walmart, Ron.


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