BILL NUMBER: AB 71	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dymally

                        DECEMBER 4, 2006

   An act to amend Section 1182.12 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 71, as introduced, Dymally. Minimum wage adjustment.
   Under existing law, the minimum wage is $7.50 per hour on and
after January 1, 2007, and $8.00 per hour on and after January 1,
2008. Existing law authorizes the Industrial Welfare Commission to
determine minimum wages in accordance with a prescribed procedure
that includes the selection of wage boards to consider and make
recommendations regarding wage issues.
   This bill would, beginning January 1, 2009, provide for the
automatic adjustment of the minimum wage on January 1 of each year,
which would be calculated by multiplying the minimum wage by the
previous year's percentage of inflation.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1182.12 of the Labor Code is amended to read:
   1182.12.   (a)    Notwithstanding any other
provision of this part, on and after January 1, 2007, the minimum
wage for all industries shall be not less than seven dollars and
fifty cents ($7.50) per hour, and on and after January 1, 2008, the
minimum wage for all industries shall be not less than eight dollars
($8.00) per hour. 
   (b) (1) The minimum wage shall be automatically adjusted each
January 1, beginning January 1, 2009, to maintain employee purchasing
power, which would otherwise be diminished by the percentage of
inflation that occurred during the previous year.  
   (2) The minimum wage shall be automatically adjusted by
multiplying the minimum wage in effect on the prior June 30 by the
percentage of inflation that occurred during the previous year,
adding this amount of increase to the wage from the previous year,
and rounding off the product to the nearest five cents ($0.05). The
Industrial Welfare Commission shall publicize the automatically
adjusted minimum wage, but if it cannot, then the Department of
Industrial Relations shall do so.  
   (c) For purposes of subdivision (b), the following terms have the
following meanings:  
   (1) "Percentage of inflation" means the percentage of inflation
specified in the California Consumer Price Index for All Urban
Consumers, as published by the Department of Industrial Relations,
Division of Labor Statistics and Research, or its successor index.
 
   (2) "Previous year" means the 12-month period that ended on March
31 of the calendar year prior to the adjustment.  
   (d) This section may not be construed to either preclude an
increase of the minimum wage by the Industrial Welfare Commission in
an amount that is greater than the rate calculated pursuant to
subdivision (b) or to permit a reduction in the minimum wage.