BILL NUMBER: AB 10	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 19, 2013

INTRODUCED BY   Assembly Member Alejo

                        DECEMBER 3, 2012

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 10, as amended, 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, on and after January 1,
2014, to not less than $8.25 per hour. The bill would further
increase the minimum wage, on and after January 1, 2015, to not less
than $8.75 per hour,  and  on and after January 1,
2016, to not less than $9.25 per hour  , on and after January 1,
2017, to not less than $9.50 per hour, and on and after January 1,
2018, to not less than $10 per hour  . 
   This bill would provide for an adjustment to the hourly minimum
wage beginning on January 1, 2017, 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 prohibit the Industrial Welfare
Commission from adjusting the minimum wage downward and from
adjusting the minimum wage upward if the average percentage of
inflation for the previous year was negative. The bill would require
the Industrial Welfare Commission to publicize the automatically
adjusted minimum wage.  
   This bill would provide that its provisions not be construed to
preclude an increase in the minimum wage greater than the formula
would provide.
   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, 2014, the minimum wage for all industries shall be not
less than eight dollars and twenty-five cents ($8.25) per hour
 and   ,  on and after January 1, 2015, the
minimum wage for all industries shall be not less than eight dollars
and seventy-five cents ($8.75) per hour  and  
,  on and after January 1, 2016, the minimum wage for all
industries shall be not less than nine dollars and twenty-five cents
($9.25) per hour  , on and after January 1, 2017, the minimum
wage for all industries shall be not less than nine dollars and fifty
cents ($9.50) per hour, and on and   after January 1, 2018,
the minimum wage for all indust   ries shall be not less
than ten dollars ($10) per hour  . 
   (b) (1) Except as provided in paragraph (3), the minimum wage
shall be automatically adjusted on January 1 of each year, commencing
on January 1, 2017, 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) The Industrial Welfare Commission shall not adjust the minimum
wage pursuant to this subdivision if the average percentage of
inflation for the previous year was negative.  
   (4) For purposes of this subdivision, 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) The Industrial Welfare Commission shall not reduce the minimum
wage prescribed by this section.  
   (d) This section shall not be construed 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).