BILL NUMBER: AB 10	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Alejo

                        DECEMBER 6, 2010

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 10, as introduced, Alejo. Minimum wage: annual adjustment.
   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, as of January 1, 2012,
to not less than $8.50 per hour.
   This bill would provide for an adjustment to the hourly minimum
wage on January 1, 2013, 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 require the Industrial Welfare Commission
to publicize the automatically adjusted minimum wage.
   This bill would prohibit its provisions from being construed
either to preclude an increase in the minimum wage greater than the
formula would provide or to result in a reduction in the minimum
wage.
   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
  2012  , 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) 
 eight dollars and   fifty cents ($8.50)  per hour.

   (b) (1) The minimum wage shall be automatically adjusted on
January 1 of each year, commencing on January 1, 2013, to maintain
employee purchasing power diminished by the rate of inflation that
occurred during the previous year.  
   (2) The minimum wage adjustment shall be made by multiplying the
minimum wage in effect on December 31 of the previous year by the
percentage of inflation that occurred during that year, and by adding
the product to the wage in effect during that year. The resulting
total shall be rounded off to the nearest five cents ($0.05). The
Industrial Welfare Commission shall publicize the automatically
adjusted minimum wage.  
   (3) For purposes of this calculation, the following terms have the
following meanings:  
   (A) "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.
 
   (B) "Previous year" means the 12-month period that ends on August
31 of the calendar year prior to the adjustment.  
   (c) This section shall not be construed either to 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 result in a reduction in the minimum wage.