Minimum wage increase proposed

By CMTA Staff

Capitol Update, Dec. 7, 2012

Assemblyman Luis Alejo (D-Salinas) this week reintroduced legislation seeking increases to the state minimum wage rate, despite its defeat last legislative session. The new bill, AB 10, is similar to Alejo’s previous AB 1439 in that it would require annual adjustment increases to the state minimum wage – currently $8.00 per hour. Unlike the previous legislation, the new bill outlines a wage increase schedule requiring the state rate to increase to $8.25 beginning in 2014 and grow not less than 50 cents annually until 2016. Beginning in 2017, the bill provides for annual adjustments based on the previous year’s inflation percentage rate and prohibits the minimum wage from being lowered should consumer prices or the inflation rate decrease. Alejo has stated in reports that AB 10 is his top legislative priority this year since, according to Alejo, linking the minimum wage to the rate of inflation will help the economy and aid struggling workers by putting more money in their pockets.

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