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 wouldbegin delete further increaseend deletebegin insert require the automatic adjustment ofend insert the minimum wage annually thereafter, to maintain employee purchasingbegin delete power.end deletebegin insert
power diminished by the rate of inflation during the previous year.end insert Thebegin delete automatically adjusted minimum wageend deletebegin insert adjustmentend insert would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commissionbegin insert (IWC)end insert frombegin delete adjustingend deletebegin insert reducingend insert the minimum wagebegin 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 thebegin delete Industrial Welfare Commissionend deletebegin insert IWCend insert to publicize the automatically adjusted minimum wage.
The bill would provide that its provisions not be construed to precludebegin delete an increase inend deletebegin insert the IWC from increasingend insert the minimum wage to an amount greater than thebegin delete formulaend deletebegin insert calculationend insert wouldbegin delete provide, to result in a reduction in the minimum wage,end deletebegin insert
provideend insert 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.
end insertVote: 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:
(a) Notwithstanding any other provision of this part,
4on and after January 1, 2015, the minimum wage for all industries
5shall be not less than eleven dollars ($11) per hour, on and after
6January 1, 2016, the minimum wage for all industries shall be not
7less than twelve dollars ($12) per hour, and on and after January
81, 2017, 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
11shall be automatically adjusted on January 1 of each year,
12commencing on January 1, 2018, to maintain employee purchasing
13power diminished by the rate of inflation that occurred during the
14previous year.
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 Industrial Welfare Commission shall publicize the
21automatically 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
P3 1Urban Consumers, as published by the Department of Industrial
2Relations, Division of Labor Statistics and Research, or its
3successor index.
4(B) “Previous year” means the 12-month period that ends on
5August 31 of the calendar year prior to the adjustment.
6(c) The Industrial Welfare Commission shall not reduce the
7minimum wage prescribed by this section.
8(d) This section shall not be construed to preclude an increase
9of the minimum wage by the Industrial Welfare Commission to
10an amount that is greater than the rate calculated pursuant to
11subdivision (b) or to preclude or supersede an increase of the
12minimum wage that is greater than the state minimum wage by
13
any local government or tribal government.
14(e) This section applies to all industries, including public and
15private employment.
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