SB 3, as amended, Leno. Minimum wage: 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, 2016, to not less than $11 per hour, on and after July 1, 2017, to not less than $13 per hour. The bill would
begin delete requireend delete the annual automatic adjustment of the minimum begin delete wage, commencing January 1, 2019,end delete
to maintain employee purchasing power diminished by the rate of inflation during the previous year. The adjustment would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the begin delete Industrial Welfare Commission (IWC)end delete from begin delete adjustingend delete the minimum wage begin delete downwardend delete and from adjusting the minimum wage if the average percentage of inflation for the previous year was negative. The bill would require the begin delete IWCend delete to publicize the automatically adjusted minimum wage.
The bill would provide that its provisions not be construed to preclude an increase in the minimum wage by the
begin delete IWCend delete to an amount greater than the formula would provide, to result in a reduction in the minimum wage, or to preclude or supersede an increase of the minimum wage that is greater than the state minimum begin delete wage by any local government or tribal government.end delete
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 1182.12 of the Labor Code is amended
(a) Notwithstanding any other provision of this part,
4on and after July 1, 2014, the minimum wage for all industries
5shall be not less than nine dollars ($9) per hour, on and after
6January 1, 2016, the minimum wage for all industries shall be not
7less than eleven dollars ($11) per hour, and on and after July 1,
82017, the minimum wage for all industries shall be not less than
9thirteen dollars ($13) per hour.
10(b) (1) Except as provided in paragraph (3), the minimum wage shall be automatically
12adjusted on January 1 of each
begin delete year, commencing on January 1,
to maintain employee purchasing power diminished
14by the rate of inflation that occurred during the previous year.
15(2) The minimum wage adjustment shall be made by multiplying
16the minimum wage in effect on December 31 of the previous year
P3 1by the percentage rate of inflation that occurred during that year,
2and by adding the product to the wage in effect during that year.
3The resulting total shall be rounded off to the nearest five cents
begin delete Industrial Welfare Commissionend delete shall publicize the automatically adjusted
7(3) The Industrial Welfare Commission shall not adjust the
8minimum wage pursuant to this subdivision if the average
9percentage of inflation for the previous year was negative.
10(4) For purposes of this subdivision:
11(A) “Percentage rate of inflation” means the percentage rate of
12inflation specified in the California Consumer Price Index for All
13Urban Consumers, as published by the Department of Industrial
14Relations, Office of Policy, Research and Legislation, or its
16(B) “Previous year” means the 12-month period that ends on
17August 31 of the calendar year prior to the adjustment.
18(c) The Industrial Welfare Commission shall not reduce the
19minimum wage prescribed by this section.
20(d) This section shall not be construed to preclude an increase
21of the minimum wage by the Industrial Welfare Commission to
22an amount that is greater than the rate calculated pursuant to
23subdivision (b) or to preclude or supersede an increase of the
24minimum wage that
25is greater than the state minimum
begin delete wage by any local government
26or tribal government.end delete
27(e) This section applies to all industries, including public and