Amended in Assembly March 28, 2016

Amended in Senate March 11, 2015

Senate BillNo. 3


Introduced by Senatorsbegin delete Leno andend deletebegin insert Leno, De end insertbegin insertLeóend insertbegin insertn, andend insert Leyva

begin delete

(Principal coauthor: Senator De León)

end delete
begin insert

(Principal coauthors: Assembly Members Bonta, Gomez, Gonzalez, Roger Hernández, McCarty, Rendon, and Ting)

end insert

(Coauthors: Senatorsbegin delete Hancock and McGuireend deletebegin insert Beall, Block, Hall, Hancock, Hertzberg, Hill, Hueso, Jackson, Lara, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Wieckowski, and Wolkend insert)

(Coauthors: Assembly Membersbegin insert Atkins andend insert Mark Stone)

December 1, 2014


begin deleteAn act to amend Section 1182.12 of the Labor Code, relating to wages. end deletebegin insertAn act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 3, as amended, Leno. begin deleteMinimum wage: adjustment. end deletebegin insertMinimum wage: in-home supportive services: paid sick days.end insert

begin insert

(1) Under existing law, the Healthy Workplaces, Healthy Families Act of 2014, an employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days, as specified. Existing law requires an employee to accrue paid sick days at the rate of not less than one hour per every 30 hours worked subject to specified use and accrual limitations. For the purposes of the act, an “employee” does not include a provider of in-home supportive services, as described.

end insert
begin insert

This bill, on and after July 1, 2018, would entitle a provider of in-home supportive services who works in California for 30 or more days within a year from the commencement of employment to paid sick days, subject to specified full amount of leave time amounts and that rate of accrual. The bill would require the State Department of Social Services, in consultation with stakeholders, to convene a workgroup to implement paid sick leave for in-home supportive services providers and to issue guidance in that regard by December 1, 2017. The bill would authorize the department to implement that paid sick leave without complying with the Administrative Procedure Act.

end insert
begin insert

(2) On and after July 1, 2014, existing law requires the minimum wage for all industries to be not less than $9 per hour. On and after January 1, 2016, existing law requires the minimum wage for all industries to be not less than $10 per hour.

end insert
begin insert

This bill would require the minimum wage for all industries to not be less than specified amounts to be increased from January 1, 2017 to January 1, 2022, inclusive, for employers employing 26 or more employees and from January 1, 2018 to January 1, 2023, inclusive, for employers employing 25 or fewer employees, except when the scheduled increases are temporarily suspended by the Governor, based on certain determinations. This bill would also require the Director of Finance, after the last scheduled minimum wage increase, to annually adjust the minimum wage under a specified formula.

end insert
begin insert

On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified amount for employers employing 26 or more employees, the bill would require the Director of Finance to annually determine, based on certain factors, whether economic conditions can support a scheduled minimum wage increase and certify that determination to the Governor and the Legislature. The bill would also require the State Board of Equalization to publish specified retail sales and use tax information on its Internet Web site to be used by the Director of Finance in making that determination.

end insert
begin insert

On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified amount for employers employing 26 or more employees, in order to ensure that the state General Fund can support the next scheduled minimum wage increase, the bill would also require the Director of Finance to annually determine and certify to the Governor and the Legislature whether the state General Fund would be in a deficit in the current fiscal year, or in either of the following 2 fiscal years.

end insert
begin delete

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.

end delete
begin delete

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, commencing January 1, 2019, the annual automatic adjustment of the minimum 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 commission from reducing the minimum wage and from adjusting the minimum wage if the average percentage of inflation for the previous year was negative. The bill would require the Division of Labor Standards Enforcement to publicize the automatically adjusted minimum wage.

end delete
begin delete

The bill would provide that its provisions not be construed to preclude an increase in the minimum wage by the 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.

end delete
begin delete

The bill would apply to all industries, including public and private employment.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 245.5 of the end insertbegin insertLabor Codeend insertbegin insert is amended to
2read:end insert

P4    1

245.5.  

As used in this article:

2(a) “Employee” does not include the following:

3(1) An employee covered by a valid collective bargaining
4agreement if the agreement expressly provides for the wages, hours
5of work, and working conditions of employees, and expressly
6provides for paid sick days or a paid leave or paid time off policy
7that permits the use of sick days for those employees, final and
8binding arbitration of disputes concerning the application of its
9paid sick days provisions, premium wage rates for all overtime
10hours worked, and regular hourly rate of pay of not less than 30
11percent more than the state minimum wage rate.

12(2) An employee in the construction industry covered by a valid
13collective bargaining agreement if the agreement expressly provides
14for the wages, hours of work, and working conditions of
15employees, premium wage rates for all overtime hours worked,
16and regular hourly pay of not less than 30 percent more than the
17state minimum wage rate, and the agreement either (A) was entered
18into before January 1, 2015, or (B) expressly waives the
19requirements of this article in clear and unambiguous terms. For
20purposes of this subparagraph, “employee in the construction
21industry” means an employee performing work associated with
22construction, including work involving alteration, demolition,
23building, excavation, renovation, remodeling, maintenance,
24improvement, repair work, and any other work as described by
25Chapter 9 (commencing with Section 7000) of Division 3 of the
26Business and Professions Code, and other similar or related
27occupations or trades.

begin delete end deletebegin delete

28(3) A provider of in-home supportive services under Section
2914132.95, 14132.952, or 14132.956 of, or Article 7 (commencing
30with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the
31Welfare and Institutions Code.

end delete
begin delete end deletebegin delete

32(4)

end delete

33begin insert(3)end insert An individual employed by an air carrier as a flight deck or
34cabin crew member that is subject to the provisions of Title II of
35the federal Railway Labor Act (45 U.S.C. Sec. 151 et seq.),
36provided that the individual is provided with compensated time
37off equal to or exceeding the amount established in paragraph (1)
38of subdivision (b) of Section 246.

begin delete

39(5)

end delete

P5    1begin insert(4)end insert An employee of the state, city, county, city and county,
2district, or any other public entity who is a recipient of a retirement
3allowance and employed without reinstatement into his or her
4respective retirement system pursuant to either Article 8
5(commencing with Section 21220) of Chapter 12 of Part 3 of
6Division 5 of Title 2 of the Government Code, or Article 8
7(commencing with Section 31680) of Chapter 3 of Part 3 of
8Division 4 of Title 3 of the Government Code.

9(b) “Employer” means any person employing another under
10any appointment or contract of hire and includes the state, political
11subdivisions of the state, and municipalities.

12(c) “Family member” means any of the following:

13(1) A child, which for purposes of this article means a biological,
14adopted, or foster child, stepchild, legal ward, or a child to whom
15the employee stands in loco parentis. This definition of a child is
16applicable regardless of age or dependency status.

17(2) A biological, adoptive, or foster parent, stepparent, or legal
18guardian of an employee or the employee’s spouse or registered
19domestic partner, or a person who stood in loco parentis when the
20employee was a minor child.

21(3) A spouse.

22(4) A registered domestic partner.

23(5) A grandparent.

24(6) A grandchild.

25(7) A sibling.

26(d) “Health care provider” has the same meaning as defined in
27paragraph (6) of subdivision (c) of Section 12945.2 of the
28Government Code.

29(e) “Paid sick days” means time that is compensated at the same
30wage as the employee normally earns during regular work hours
31and is provided by an employer to an employee for the purposes
32described in Section 246.5.

33begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 246 of the end insertbegin insertLabor Codeend insertbegin insert is amended to read:end insert

34

246.  

(a) begin insert(1)end insertbegin insertend insertAn employee who, on or after July 1, 2015, works
35in California for the same employer for 30 or more days within a
36year from the commencement of employment is entitled to paid
37sick days as specified in this section.

begin insert

38
(2) On and after July 1, 2018, a provider of in-home supportive
39services under Section 14132.95, 14132.952, or 14132.956 of, or
40Article 7 (commencing with Section 12300) of Chapter 3 of Part
P6    13 of Division 9 of, the Welfare and Institutions Code, who works
2in California for 30 or more days within a year from the
3commencement of employment is entitled to paid sick days as
4specified in subdivision (e) and subject to the rate of accrual in
5paragraph (1) of subdivision (b).

end insert

6(b) (1) An employee shall accrue paid sick days at the rate of
7not less than one hour per every 30 hours worked, beginning at
8the commencement of employment or the operative date of this
9article, whichever is later, subject to the use and accrual limitations
10set forth in this section.

11(2) An employee who is exempt from overtime requirements
12as an administrative, executive, or professional employee under a
13wage order of the Industrial Welfare Commission is deemed to
14work 40 hours per workweek for the purposes of this section,
15unless the employee’s normal workweek is less than 40 hours, in
16which case the employee shall accrue paid sick days based upon
17that normal workweek.

18(3) An employer may use a different accrual method, other than
19providing one hour per every 30 hours worked, provided that the
20accrual is on a regular basis so that an employee has no less than
2124 hours of accrued sick leave or paid time off by the 120th
22calendar day of employment or each calendar year, or in each
2312-month period.

24(4) An employer may satisfy the accrual requirements of this
25section by providing not less than 24 hours or three days of paid
26sick leave that is available to the employee to use by the completion
27of his or her 120th calendar day of employment.

28(c) An employee shall be entitled to use accrued paid sick days
29beginning on the 90th day of employment, after which day the
30employee may use paid sick days as they are accrued.

31(d) Accrued paid sick days shall carry over to the following
32year of employment. However, an employer may limit an
33employee’s use of accrued paid sick days to 24 hours or three days
34in each year of employment, calendar year, or 12-month period.
35This section shall be satisfied and no accrual or carryover is
36required if the full amount of leave is received at the beginning of
37each year of employment, calendar year, or 12-month period. The
38term “full amount of leave” means three days or 24 hours.

begin insert

39
(e) For a provider of in-home supportive services under Section
4014132.95, 14132.952, or 14132.956 of, or Article 7 (commencing
P7    1with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the
2Welfare and Institutions Code, the term “full amount of leave” is
3defined as follows:

end insert
begin insert

4
(1) Eight hours or one day in each year of employment, calendar
5year, or 12-month period beginning July 1, 2018.

end insert
begin insert

6
(2) Sixteen hours or two days in each year of employment,
7calendar year, or 12-month period beginning when the minimum
8wage, as set forth in paragraph (1) of subdivision (b) of Section
91182.12 and accounting for any years postponed under
10subparagraph (D) of paragraph (3) of subdivision (d) of Section
111182.12, has reached $13.00 per hour.

end insert
begin insert

12
(3) Twenty-four hours or three days in each year of employment,
13calendar year, or 12-month period beginning when the minimum
14wage, as set forth in paragraph (1) of subdivision (b) of Section
151182.12 and accounting for any years postponed under
16subparagraph (D) of paragraph (3) of subdivision (d) of Section
171182.12, has reached $15.00 per hour.

end insert
begin delete

18(e)

end delete

19begin insert(f)end insert An employer is not required to provide additional paid sick
20days pursuant to this section if the employer has a paid leave policy
21or paid time off policy, the employer makes available an amount
22of leave applicable to employees that may be used for the same
23purposes and under the same conditions as specified in this section,
24and the policy satisfies one of the following:

25(1) Satisfies the accrual, carryover, and use requirements of this
26section.

27(2) Provided paid sick leave or paid time off to a class of
28employees before January 1, 2015, pursuant to a sick leave policy
29or paid time off policy that used an accrual method different than
30providing one hour per 30 hours worked, provided that the accrual
31is on a regular basis so that an employee, including an employee
32hired into that class after January 1, 2015, has no less than one day
33or eight hours of accrued sick leave or paid time off within three
34months of employment of each calendar year, or each 12-month
35period, and the employee was eligible to earn at least three days
36or 24 hours of sick leave or paid time off within nine months of
37employment. If an employer modifies the accrual method used in
38the policy it had in place prior to January 1, 2015, the employer
39shall comply with any accrual method set forth in subdivision (b)
40or provide the full amount of leave at the beginning of each year
P8    1of employment, calendar year, or 12-month period. This section
2does not prohibit the employer from increasing the accrual amount
3or rate for a class of employees covered by this subdivision.

4(3) Notwithstanding any other law, sick leave benefits provided
5pursuant to the provisions of Sections 19859 to 19868.3, inclusive,
6of the Government Code, or annual leave benefits provided
7pursuant to the provisions of Sections 19858.3 to 19858.7,
8inclusive, of the Government Code, or by provisions of a
9memorandum of understanding reached pursuant to Section 3517.5
10that incorporate or supersede provisions of Section 19859 to
1119868.3, inclusive, or Sections 19858.3 to 19858.7, inclusive of
12the Government Code, meet the requirements of this section.

begin delete

13(f)

end delete

14begin insert(g)end insert (1) Except as specified in paragraph (2), an employer is not
15required to provide compensation to an employee for accrued,
16unused paid sick days upon termination, resignation, retirement,
17or other separation from employment.

18(2) If an employee separates from an employer and is rehired
19by the employer within one year from the date of separation,
20previously accrued and unused paid sick days shall be reinstated.
21The employee shall be entitled to use those previously accrued
22and unused paid sick days and to accrue additional paid sick days
23upon rehiring, subject to the use and accrual limitations set forth
24in this section. An employer is not required to reinstate accrued
25paid time off to an employee that was paid out at the time of
26termination, resignation, or separation of employment.

begin delete

27(g)

end delete

28begin insert(h)end insert An employer may lend paid sick days to an employee in
29advance of accrual, at the employer’s discretion and with proper
30documentation.

begin delete

31(h)

end delete

32begin insert(i)end insert An employer shall provide an employee with written notice
33that sets forth the amount of paid sick leave available, or paid time
34off leave an employer provides in lieu of sick leave, for use on
35either the employee’s itemized wage statement described in Section
36226 or in a separate writing provided on the designated pay date
37with the employee’s payment of wages. If an employer provides
38unlimited paid sick leave or unlimited paid time off to an employee,
39the employer may satisfy this section by indicating on the notice
40or the employee’s itemized wage statement “unlimited.” The
P9    1penalties described in this article for a violation of this subdivision
2shall be in lieu of the penalties for a violation of Section 226. This
3subdivision shall apply to employers covered by Wage Order 11
4or 12 of the Industrial Welfare Commission only on and after
5January 21, 2016.

begin delete

6(i)

end delete

7begin insert(j)end insert An employer has no obligation under this section to allow
8an employee’s total accrual of paid sick leave to exceed 48 hours
9or 6 days, provided that an employee’s rights to accrue and use
10paid sick leave are not limited other than as allowed under this
11section.

begin delete

12(j)

end delete

13begin insert(k)end insert An employee may determine how much paid sick leave he
14or she needs to use, provided that an employer may set a reasonable
15minimum increment, not to exceed two hours, for the use of paid
16sick leave.

begin delete

17(k)

end delete

18begin insert (end insertbegin insertlend insertbegin insert)end insert For the purposes of this section, an employer shall calculate
19paid sick leave using any of the following calculations:

20(1) Paid sick time for nonexempt employees shall be calculated
21in the same manner as the regular rate of pay for the workweek in
22which the employee uses paid sick time, whether or not the
23employee actually works overtime in that workweek.

24(2) Paid sick time for nonexempt employees shall be calculated
25by dividing the employee’s total wages, not including overtime
26premium pay, by the employee’s total hours worked in the full pay
27periods of the prior 90 days of employment.

28(3) Paid sick time for exempt employees shall be calculated in
29the same manner as the employer calculates wages for other forms
30of paid leave time.

begin delete

31(l)

end delete

32begin insert(m)end insert If the need for paid sick leave is foreseeable, the employee
33shall provide reasonable advance notification. If the need for paid
34sick leave is unforeseeable, the employee shall provide notice of
35the need for the leave as soon as practicable.

begin delete

36(m)

end delete

37begin insert(n)end insert An employer shall provide payment for sick leave taken by
38an employee no later than the payday for the next regular payroll
39period after the sick leave was taken.

begin insert

P10   1
(o) The State Department of Social Services, in consultation
2with stakeholders, shall convene a workgroup to implement paid
3sick leave for in-home supportive services providers as specified
4in this section. This workgroup shall finish its implementation
5work by November 1, 2017, and the State Department of Social
6Services shall issue guidance such as an all-county letter or similar
7instructions by December 1, 2017.

end insert
begin insert

8
(p) Notwithstanding the rulemaking provisions of the
9Administrative Procedure Act (Chapter 3.5 (commencing with
10Section 11340) of Part 1 of Division 3 of Title 2 of the Government
11Code), the State Department of Social Services may implement,
12interpret, or make specific this section by means of an all-county
13letter, or similar instructions, without taking any regulatory action.

end insert
14begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 1182.12 of the end insertbegin insertLabor Codeend insertbegin insert is amended to read:end insert

15

1182.12.  

begin insert(a)end insertbegin insertend insertNotwithstanding any other provision of this part,
16on and after July 1, 2014, the minimum wage for all industries
17shall be not less than nine dollars ($9) per hour, and on and after
18January 1, 2016, the minimum wage for all industries shall be not
19less than ten dollars ($10) per hour.

begin insert

20
(b) Notwithstanding subdivision (a), the minimum wage for all
21industries shall not be less than the amounts set forth in this
22subdivision, except when the scheduled increases in paragraphs
23(1) and (2) are temporarily suspended under subdivision (d).

end insert
begin insert

24
(1) For any employer who employs 26 or more employees, the
25minimum wage shall be as follows:

end insert
begin insert

26
(A) From January 1, 2017, to December 31, 2017,
27inclusive,--ten dollars and fifty cents ($10.50) per hour.

end insert
begin insert

28
(B) From January 1, 2018, to December 31, 2018,
29inclusive,--eleven dollars ($11) per hour.

end insert
begin insert

30
(C) From January 1, 2019, to December 31, 2019,
31inclusive,--twelve dollars ($12) per hour.

end insert
begin insert

32
(D) From January 1, 2020, to December 31, 2020,
33inclusive,--thirteen dollars ($13) per hour.

end insert
begin insert

34
(E) From January 1, 2021, to December 31, 2021,
35inclusive,--fourteen dollars ($14) per hour.

end insert
begin insert

36
(F) From January 1, 2022, and until adjusted by subdivision
37(c)--fifteen dollars ($15) per hour.

end insert
begin insert

38
(2) For any employer who employs 25 or fewer employees, the
39minimum wage shall be as follows:

end insert
begin insert

P11   1
(A) From January 1, 2018, to December 31, 2018,
2inclusive,--ten dollars and fifty cents ($10.50) per hour.

end insert
begin insert

3
(B) From January 1, 2019, to December 31, 2019,
4inclusive,--eleven dollars ($11) per hour.

end insert
begin insert

5
(C) From January 1, 2020, to December 31, 2020,
6inclusive,--twelve dollars ($12) per hour.

end insert
begin insert

7
(D) From January 1, 2021, to December 31, 2021,
8inclusive,--thirteen dollars ($13) per hour.

end insert
begin insert

9
(E) From January 1, 2022, to December 31, 2022,
10inclusive,--fourteen dollars ($14) per hour.

end insert
begin insert

11
(F) From January 1, 2023, and until adjusted by subdivision
12(c)--fifteen dollars ($15) per hour.

end insert
begin insert

13
(3) For purposes of this subdivision, “employer” means any
14person who directly or indirectly, or through an agent or any other
15person, employs or exercises control over the wages, hours, or
16working conditions of any person. For purposes of this subdivision,
17“employer” includes the state, political subdivisions of the state,
18and municipalities.

end insert
begin insert

19
(4) Employees who are treated as employed by a single qualified
20taxpayer under subdivision (h) of Section 23626 of the Revenue
21and Taxation Code, as it read on the effective date of this section,
22shall be considered employees of that taxpayer for purposes of
23this subdivision.

end insert
begin insert

24
(c) (1) Following the implementation of the minimum wage
25increase specified in subparagraph (F) of paragraph (2) of
26subdivision (b), on or before August 1 of that year, and on or before
27each August 1 thereafter, the Director of Finance shall calculate
28an adjusted minimum wage. The calculation shall increase the
29minimum wage by the lesser of three and one-half percent (3.5%)
30and the rate of change in the averages of the most recent July 1
31to June 30, inclusive, period over the preceding July 1 to June 30,
32inclusive, period for the United States Bureau of Labor Statistics
33nonseasonally adjusted United States Consumer Price Index for
34Urban Wage Earners and Clerical Workers (U.S. CPI-W). The
35result shall be rounded to the nearest ten cents ($0.10). Each
36adjusted minimum wage increase calculated under this subdivision
37shall take effect on the following January 1.

end insert
begin insert

38
(2) If the rate of change in the averages of the most recent July
391 to June 30, inclusive, period over the preceding July 1 to June
4030, inclusive, period for the United States Bureau of Labor
P12   1Statistics nonseasonally adjusted U.S. CPI-W is negative, there
2shall be no increase or decrease in the minimum wage pursuant
3to this subdivision on the following January 1.

end insert
begin insert

4
(3) (A) Notwithstanding the implementation timing described
5in paragraph (1) of this subdivision, if the rate of change in the
6averages of the most recent July 1 to June 30, inclusive, period
7over the preceding July 1 to June 30, inclusive, period for the
8United States Bureau of Labor Statistics nonseasonally adjusted
9U.S. CPI-W exceeds 7 percent (7%) in the first year that the
10minimum wage specified in subparagraph (F) of paragraph (1) of
11subdivision (b) is implemented, the indexing provisions described
12in paragraph (1) of this subdivision shall be implemented
13immediately, such that the indexing will be effective on the
14following January 1.

end insert
begin insert

15
(B) If the rate of change in the averages of the most recent July
161 to June 30, inclusive, period over the preceding July 1 to June
1730, inclusive, period for the United States Bureau of Labor
18Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent
19(7%) in the first year that the minimum wage specified in
20subparagraph (F) of paragraph (1) of subdivision (b) is
21implemented, notwithstanding any other law, for employers with
2225 or fewer employees the minimum wage shall be set equal to the
23minimum wage for employers with 26 or more employees, effective
24on the following January 1, and the minimum wage increase
25specified in subparagraph (F) of paragraph (2) of subdivision (b)
26shall be considered to have been implemented for purposes of this
27subdivision.

end insert
begin insert

28
(d) (1) On or before July 28, 2017, and on or before every July
2928 thereafter until the minimum wage is fifteen dollars ($15) per
30hour pursuant to paragraph (1) of subdivision (b), to ensure that
31economic conditions can support a minimum wage increase, the
32Director of Finance shall annually make a determination and
33certify to the Governor and the Legislature whether each of the
34following conditions is met:

end insert
begin insert

35
(A) Total nonfarm employment for California, seasonally
36adjusted, decreased over the three-month period from April to
37June, inclusive, prior to the July 28 determination. This calculation
38shall compare seasonally adjusted total nonfarm employment in
39June to seasonally adjusted total nonfarm employment in March,
40as reported by the Employment Development Department.

end insert
begin insert

P13   1
(B) Total nonfarm employment for California, seasonally
2adjusted, decreased over the six-month period from January to
3June, inclusive, prior to the July 28 determination. This calculation
4shall compare seasonally adjusted total nonfarm employment in
5June to seasonally adjusted total nonfarm employment in
6December, as reported by the Employment Development
7Department.

end insert
begin insert

8
(C) Retail sales and use tax cash receipts from a 3.9375-percent
9tax rate for the July 1 to June 30, inclusive, period ending one
10month prior to the July 28 determination is less than retail sales
11and use tax cash receipts from a 3.9375-percent tax rate for the
12July 1 to June 30, inclusive, period ending 13 months prior to the
13July 28 determination. The calculation for the condition specified
14in this subparagraph shall be made as follows:

end insert
begin insert

15
(i) The State Board of Equalization shall publish by the 10th of
16each month on its Internet Web site the total retail sales (sales
17before adjustments) for the prior month derived from their daily
18retail sales and use tax reports.

end insert
begin insert

19
(ii) The State Board of Equalization shall publish by the 10th
20of each month on its Internet Web site the monthly factor required
21to convert the prior month’s retail sales and use tax total from all
22tax rates to a retail sales and use tax total from a 3.9375-percent
23tax rate.

end insert
begin insert

24
(iii) The Department of Finance shall multiply the monthly total
25from clause (i) by the monthly factor from clause (ii) for each
26month.

end insert
begin insert

27
(iv) The Department of Finance shall sum the monthly totals
28calculated in clause (iii) to calculate the 12-month July 1 to June
2930, inclusive, totals needed for the comparison in this
30subparagraph.

end insert
begin insert

31
(2) (A) On or before July 28, 2017, and on or before every July
3228 thereafter until the minimum wage is fifteen dollars ($15) per
33hour pursuant to paragraph (1) of subdivision (b), to ensure that
34the state General Fund fiscal condition can support the next
35scheduled minimum wage increase, the Director of Finance shall
36annually make a determination and certify to the Governor and
37the Legislature whether the state General Fund would be in a
38deficit in the current fiscal year, or in either of the following two
39fiscal years.

end insert
begin insert

P14   1
(B) For purposes of this subdivision, deficit is defined as a
2negative balance in the Special Fund for Economic Uncertainties,
3as provided for in Section 16418 of the Government Code, that
4exceeds, in absolute value, 1 percent of total state General Fund
5revenue and transfers, based on the most recent Department of
6Finance estimates required by Section 12.5 of Article IV of the
7California Constitution. For purposes of this subdivision, the
8estimates shall include the assumption that only the minimum wage
9increases scheduled for the following calendar year pursuant to
10subdivision (b) will be implemented.

end insert
begin insert

11
(3) (A)  (i) If, for any year, the condition in either subparagraph
12(A) or (B) of paragraph (1) is met, and if the condition in
13subparagraph (C) of paragraph (1) is met, the Governor may, on
14or before August 1 of that year, notify the Legislature of an initial
15determination to temporarily suspend the minimum wage increases
16scheduled pursuant to subdivision (b) for the following year.

end insert
begin insert

17
(ii) If the Director of Finance certifies under paragraph (2) that
18the state General Fund would be in a deficit in the current fiscal
19year, or in either of the following two fiscal years, the Governor
20may, on or before August 1 of that fiscal year, notify the Legislature
21of an initial determination to temporarily suspend the minimum
22wage increases scheduled pursuant to subdivision (b) for the
23following year.

end insert
begin insert

24
(B) If the Governor provides notice to the Legislature pursuant
25to subparagraph (A), the Governor shall, on September 1 of any
26such year, make a final determination whether to temporarily
27suspend the minimum wage increases scheduled pursuant to
28subdivision (b) for the following year. The determination to
29temporarily suspend the minimum wage increases scheduled
30pursuant to subdivision (b) for the following year shall be made
31by proclamation.

end insert
begin insert

32
(C) The Governor may temporarily suspend scheduled minimum
33wage increases pursuant to clause (ii) of subparagraph (A) no
34more than two times.

end insert
begin insert

35
(D) If the Governor makes a final determination to temporarily
36suspend the scheduled minimum wage increases pursuant to
37subdivision (b) for the following year, all dates specified in
38subdivision (b) that are subsequent to the September 1 final
39determination date shall be postponed by an additional year.

end insert
begin delete
P15   1

SECTION 1.  

Section 1182.12 of the Labor Code is amended
2to read:

3

1182.12.  

(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), commencing on
11January 1, 2019, the minimum wage shall be automatically adjusted
12on January 1 of each year to maintain employee purchasing power
13diminished by the rate of inflation that occurred during the previous
14year.

15(2) The minimum wage adjustment shall be made by multiplying
16the minimum wage in effect on December 31 of the previous year
17by the percentage rate of inflation that occurred during that year,
18and by adding the product to the wage in effect during that year.
19The resulting total shall be rounded off to the nearest five cents
20($0.05). The Division of Labor Standards Enforcement shall
21publicize the automatically adjusted minimum wage.

22(3) The Industrial Welfare Commission shall not adjust the
23minimum wage pursuant to this subdivision if the average
24percentage of inflation for the previous year was negative.

25(4) For purposes of this subdivision:

26(A) “Percentage rate of inflation” means the percentage rate of
27inflation specified in the California Consumer Price Index for All
28Urban Consumers, as published by the Department of Industrial
29Relations, Office of Policy, Research and Legislation, or its
30successor index.

31(B) “Previous year” means the 12-month period that ends on
32August 31 of the calendar year prior to the adjustment.

33(c) The Industrial Welfare Commission shall not reduce the
34minimum wage prescribed by this section.

35(d) This section shall not be construed to preclude an increase
36of the minimum wage by the Industrial Welfare Commission to
37an amount that is greater than the rate calculated pursuant to
38subdivision (b) or to preclude or supersede an increase of the
39minimum wage by any local government or tribal government that
40is greater than the state minimum wage.

P16   1(e) This section applies to all industries, including public and
2private employment.

end delete

CORRECTIONS:

Heading--Lines 3, 7 and 8.

Text--Pages 6, 7, 11 and 12.




O

Corrected 3-29-16—See last page.     97