SB 3 Senate Bill

BILL NUMBER: SB 3	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 11, 2015

INTRODUCED BY   Senators Leno and Leyva
   (Principal coauthor: Senator De León)
    (   Coauthors:   Senators  
Hancock   and McGuire   ) 
    (   Coauthors:   Assembly Members 
 Gonzalez,   McCarty,   Mark Stone,  
and Ting   ) 

                        DECEMBER 1, 2014

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 3, as amended, Leno. Minimum wage: adjustment.
   Existing law  provides that it is the continuing duty of the
Industrial Welfare Commission to ascertain the wages paid to all
employees in this state, to ascertain the hours and conditions of
labor and employment in the various occupations, trades, and
industries in which employees are employed in this state, and to
investigate the health, safety, and welfare of those employees.
Existing law establishes the Division of Labor Standards Enforcement
in the Department of Industrial Relations for the enforcement of
labor laws, including minimum wage fixed by statute and the wage
orders of the Industrial Welfare Commission. 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, and  on and after July
1, 2017, to not less than $13 per hour. The bill would
require   require,   commencing January 1,
2019,  the annual automatic adjustment of the minimum 
wage, commencing January 1, 2019,   wage  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  Industrial Welfare Commission
(IWC)   commission  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  IWC   Division of Labor
Standards Enforcement  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  IWC
  commission  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  by any
local government or tribal government  that is greater than the
state minimum  wage by any local government or tribal
government.   wage. 
   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 July 1, 2014, the minimum wage for all industries shall be
not less than nine dollars ($9) per hour, on and after January 1,
2016, the minimum wage for all industries shall be not less than
eleven dollars ($11) per hour, and on and after July 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),  commencing on
January 1, 2019,  the minimum wage shall be automatically
adjusted on January 1 of each  year, commencing on January 1,
2019,   year  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  
Division of Labor Standards Enforcement  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, Office of Policy, Research and Legislation, 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  by
any local government or tribal government  that is greater than
the state minimum  wage by any local government or tribal
government.   wage. 
   (e) This section applies to all industries, including public and
private employment.