SACRAMENTO, CA - California government has reached a deal to push California’s minimum wage to a historic $15 an hour in just under five years, which would make it the first state to do so.
Governor Jerry Brown and a team of legislative labor leaders announced yesterday that the agreement reached would set the the state on a track that will have the minimum wage level at $15 by January of 2022.
Democratic Senate Leader Kevin de Leon of Los Angeles stated this would help as many as six million California residents, according to CBS Local.
The Governor stated the deal was a sign of productivity on the state’s part, saying “California is proving once again that it can get things done and help people get ahead.”
California residents have rallied for the increase with the hopes that it will help to contribute to the economy, and as we reported last May, Los Angeles became a forerunner in developments in the movement when it increased it voted to increase its own city-wide minimum wage over 60%, from $9 to $15.
Worries persist, however, on this business end for smaller companies that worry the boost may endanger their abilities to keep the doors open.
“Dramatic wage mandates are already forcing difficult decisions in relatively wealthier areas, with low margin businesses being forced to lay off employees or close entirely,” said Michael Saltsman of the Employment Policies Institute, according to CBS.
Even chain restaurants have stated that rising wage levels is a concern. As we reported recently, Carl’s Jr. CEO Andrew Puzder told business insider he was open to an automated restaurant plan to mitigate labor.
While this is one more step towards a historic wage raise in the U.S., the deed is not yet signed. If the legislation does pass, California will be the first state to boost the minimum wage to $15 an hour.
