SB 935, as introduced, 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 the minimum wage 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 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.
The bill would provide that its provisions not be construed to preclude an increase in the minimum wage 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 wage by any local government or tribal government.
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
2to read:
begin insert(a)end insertbegin insert end insert Notwithstanding any other provision of this part,
4on and afterbegin delete July 1, 2014,end deletebegin insert January 1, 2015,end insert the minimum wage
5for all industries shall be not less thanbegin delete nineend deletebegin insert elevenend insert dollarsbegin delete ($9)end delete
6begin insert
($11)end insert per hour,begin delete andend delete on and after January 1, 2016, the minimum
7wage for all industries shall be not less thanbegin delete tenend deletebegin insert twelveend insert dollars
8begin delete ($10)end deletebegin insert ($12)end insert perbegin insert hour, and on and after January 1, 2017, the
9minimum wage for all industries shall be not less than 13 dollars
10($13) perend insert hour.
11(b) (1) Except as provided in paragraph (3), the minimum wage
12shall be automatically adjusted on January 1 of each year,
13commencing on January 1, 2018, to maintain employee purchasing
14power diminished by the rate of inflation that occurred during the
15previous year.
16(2) The minimum wage adjustment shall be made by multiplying
17the minimum wage in effect on December 31 of the previous year
18by the percentage rate of inflation that occurred during that year,
19and by adding the product to the wage in effect during that year.
20The resulting total shall be rounded off to the nearest five cents
21($0.05). The Industrial Welfare Commission shall publicize the
22automatically adjusted minimum wage.
23(3) The Industrial Welfare Commission shall not adjust the
24minimum wage
pursuant to this subdivision if the average
25percentage of inflation for the previous year was negative.
26(4) For purposes of this subdivision:
end insertbegin insert
27(A) “Percentage rate of inflation” means the percentage rate
28of inflation specified in the California Consumer Price Index for
29All Urban Consumers, as published by the Department of Industrial
30Relations, Division of Labor Statistics and Research, or its
31successor index.
32(B) “Previous year” means the 12-month period that ends on
33August 31 of the calendar year prior to the adjustment.
34(c) The Industrial Welfare Commission shall not reduce the
35minimum wage prescribed by this section.
P3 1(d) This section shall not be construed to preclude an increase
2of the minimum wage by the Industrial Welfare Commission to an
3amount that is greater than the rate calculated pursuant to
4subdivision (b) or to preclude or supersede an increase of the
5minimum wage that is greater than the state minimum wage by
6any local government or tribal government.
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