BILL NUMBER: SB 935	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 18, 2014

INTRODUCED BY   Senator Leno
    (   Coauthors:   Senators  
Steinberg   and de León   ) 

                        FEBRUARY 3, 2014

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 935, as amended, Leno. Minimum wage: annual adjustment.
   Existing law requires that, on and after July 1, 2014, the minimum
wage for all industries be not less than $9 per hour. Existing law
further increases the minimum wage, on and after January 1, 2016, to
not less than $10 per hour.
   This bill would increase the minimum wage, on and after January 1,
2015, to not less than $11 per hour, on and after January 1, 2016,
to not less than $12 per hour, and on and after January 1, 2017, to
not less than $13 per hour. The bill would  further increase
  require the automatic adjustment of  the minimum
wage annually thereafter, to maintain employee purchasing 
power.   power diminished by the rate of inflation
during the previous year.  The  automatically adjusted
minimum wage   adjustment  would be calculated
using the California Consumer Price Index, as specified. The bill
would prohibit the Industrial Welfare Commission  (IWC) 
from  adjusting   reducing  the minimum
wage  downward  and from adjusting the minimum wage
if the average percentage of inflation for the previous year was
negative. The bill would require the  Industrial Welfare
Commission   IWC  to publicize the automatically
adjusted minimum wage.
   The bill would provide that its provisions not be construed to
preclude  an increase in   the IWC from
increasing  the minimum wage to an amount greater than the
 formula   calculation  would 
provide, to result in a reduction in the minimum wage,  
provide  or to preclude or supersede an increase of the minimum
wage that is greater than the state minimum wage by any local
government or tribal government. 
   The bill would apply to all industries, including public and
private employment. 
   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, 2015, the minimum wage for all industries shall
be not less than eleven dollars ($11) per hour, on and after January
1, 2016, the minimum wage for all industries shall be not less than
twelve dollars ($12) per hour, and on and after January 1, 2017, the
minimum wage for all industries shall be not less than thirteen
dollars ($13) 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, 2018, 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 rate 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:
   (A) "Percentage rate of inflation" means the percentage rate 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 to an amount
that is greater than the rate calculated pursuant to subdivision (b)
or to preclude or supersede an increase of the minimum wage that is
greater than the state minimum wage by any local government or tribal
government. 
   (e) This section applies to all industries, including public and
private employment.