April 4, 2016 9:47 AM - The Sacramento Bee
Jerry Brown signs $15 minimum wage in California
California and New York become first states to commit to $15 minimum wage
Bill expected to avert costly November ballot measure fight
Labor unions celebrate, while Republicans and business groups groan
Gov. Jerry Brown, casting a living wage as a moral imperative while
questioning its economic rationale, signed legislation Monday raising
Californiafs mandatory minimum to $15 an hour by 2022, acting within hours of a
similar bill signing in New York.
The billfs enactment comes one week after Brown, Democratic lawmakers and
labor leaders announced an agreement on the wage increase, averting a
brawl on the November ballot.
In adopting the measure, California joined New York as the first states in
the nation to enact a plan to raise their statewide minimums to $15. New York
Gov. Andrew Cuomo signed his statefs legislation and was cheered by labor unions
at a rally moments before Brown spoke in California.
Brown, a fiscal moderate, had previously expressed reservations about a wage
increase. But amid growing concern about income inequality in California and the
national thrust of the labor-backed gFight for 15h campaign, his hand was
forced. Public opinion polls showed strong support for increasing the statefs
mandatory minimum beyond its current $10.
The compromise Brown offered lawmakers – then celebrated with a bill-signing
in Los Angeles – includes a provision allowing the governor to postpone a wage increase
in the event of an economic downturn. It replaces a ballot measure that, if
passed, would have raised the minimum wage to $15 by 2021, a year faster.
Brown, traveling to the statefs largest media market to sign the landmark
bill, remained hesitant about the economic effect of raising the minimum wage,
saying, gEconomically, minimum wages may not make sense.h
But he said work is gnot just an economic equation,h calling labor gpart of
living in a moral community.h
gMorally and socially and politically, they (minimum wages) make every sense
because it binds the community together and makes sure that parents can take
care of their kids in a much more satisfactory way,h Brown said.
The wage measures in California and New York reverberated nationally.
Democratic presidential candidate Hillary Clinton appeared with Cuomo at a rally
in his state, while her rival Bernie Sanders, said in a prepared statement that
he was gproud that today two of our largest states will be increasing the
minimum wage to a living wage of $15 an hour.h
The California legislation will raise the statewide minimum to $10.50 on Jan.
1 for businesses with 26 or more workers, the first of several incremental
increases to $15, with future raises tied to inflation. Smaller businesses will
have an additional year to phase in each increase.
The law follows measures in Los Angeles and San Francisco, among other
cities, to gradually raise their own minimum wages to $15. It is expected to
affect millions of low-wage workers and businesses that employ them, especially
in the statefs agriculture, restaurant and retail industries. Some 6 million
Californians currently earn the minimum wage.
By 2022, a full-time minimum-wage worker would see annual earnings increase
to $30,000 from $20,000 today.
Senate President Pro Tem Kevin de León cast the legislation Monday as a
recognition of gthe contributions of hard-working men and womenh throughout the
state.
gNo one who works full time should live in poverty,h he said.
In a concession to the statefs influential labor unions, the bill will also
provide in-home health aides three annual sick days.
The Democratic-controlled Legislature passed the measure quickly last week,
and on partisan lines. While labor unions and their Democratic allies celebrated
the billfs passage, no Republican supported it in either house.
Republicans and business groups said rising wages will force employers to increase prices or to cut costs by laying
off workers or reducing their hours.
Research on the economic effect of a minimum wage increase is mixed, with
findings ranging from little or no impact on employment rates, on one hand, to
rising unemployment, on the other.
The measure will not come without a cost. According to the state Department
of Finance, a $15 minimum would cost California about $4 billion a year.