$10 minimum wage set to begin in California

December 30, 2015

moneyThe minimum wage in California will increase by $1 to $10 per hour on New Years. California and Massachusetts will become the first two states in the country to mandate a $10 minimum wage, according to the National Conference of State Legislatures (NCSL).

In 2016, the minimum wage will increase in 14 states. Alaska will have the third highest minimum wage — $9.75 — among states, according to the NCSL.

Some states are expected to surpass California in coming years. The federal minimum wage is currently $7.25.

In 2013, California Gov. Jerry Brown signed a bill that raised the minimum wage to $9 on July 1, 2014 and to $10 at the start of 2016. Prior to 2014, the last minimum wage increase in California occurred in 2008.

This year, the California Senate voted 23-15 in support of a bill that would raise the minimum wage to $11 in 2016 and $13 in 2017. But, the bill did not advance beyond a committee hearing in the Assembly.

Some cities in California have adopted ordinances that set a minimum wage higher than the state mandate. San Francisco’s minimum wage is due to increase to $15 by 2018, and Los Angeles’ minimum wage will rise to $15 by 2020.


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isoslo

The higher the minimum wage the more things cost, especially things poor people buy. So they really can’t get ahead. Except if you raise low end wages by ten percent then the seller of goods and service will have to up prices about 15% to cover increased payroll taxes and workers comp ins. so the poor will get farther behind. This is nothing more than pandering to the low informed. What they really need is an incentive system lick longevity pay.


the guy paso

Indeed


Slowerfaster

Pure baloney ! Every time the minimum wage has been raised TO KEEP UP WITH INFLATION, the economy improves; because people at the low end have more disposable income. Disposable so that they can afford to spend with local businesses.


Empirical fact …not right-wing garbage rhetoric.


Shocked in MB

Lets get this straight-the economy does not improve because of this. This kind of raise is only implemented when the economy is already on the rise. Politicians would never do this in a down economy. What they are doing is jumping on the back of a rising economy and the end result is to slow down a rising economy. I will tell you that because of the compounded 27% rise in wages over the past 2 years, I have removed 5 positions and laid off and not replaced 5 people who were once employed.


EMPIRICAL FACT!


isoslo

Which came first first, the unearned wage increase or inflation? The economy has not improved every time the minimum wage has increased, you just made that up. But inflation does increase every time minimum wage increases. What we need is a method to help people rise above minimum wage, not some stupid feel good raise.


racket

Brilliant.


A corollary is that a third of the shopkeep’s price increase flows directly to the government, or gov-like programs due payroll taxes and workers comp.


the guy paso

The price of goods and services will go up. Businesses will not incur the loss of profit.


pasowino

or the businesses will lay off an employee to keep their payroll in check.


TaxMeAgain

Congratulations. We are like the 6th largest economy and now we just made ourselves less productive on a global scale. Did wages go up by 11% in China, Vietnam, or India? No. We just became 11% less likely to draw a major business here. These raises will be passed on to the consumers in all labor intensive industries like farming and food prep.


Shocked in MB

Let me show you the reality of this- Minimum wage goes up-suppliers, all restaurants (McDonald’s, BK etc etc), deliveries, stores etc. all raise prices across the board. This results in the person now making $10/hour paying more for the same things they were buying before for less money i.e. their buying power has not increased at all.


Gee-that doesn’t make sense!! Oh, wait a minute, payroll taxes paid to the government by the employer and the employee go up also. I guess this explains who really gain by the raise in minimum wages-the government (they have to do absolutely nothing to get more taxes to spend and they become the hero because they have made business pay all this extra money and the politicians can now get reelected to office because they are friends of the “downtrodden”).


In the last 2 years minimum wage has gone up 20%. The only thing that has also gone up is prices and taxes to the govt.


Nothing fancy here-no smoke and mirrors, just good old politics.


willieslo

How about Social Security & Other Pensions?


Jorge Estrada

It sounds like there will be new taxes disguised as a new fee..


achillesheal

I always have wondered why people are so concerned about minimum wage. Everyone has worked for minimum wage at some point in their working lives. Those who are successful do not stay at the bottom rung of the ladder. Raise yourself.


If raising the minimum wage is such a good thing, why not raise it to $100 per hour? Do people not want to pay $80 for a McDonald’s hamburger?


Black_Copter_Pilot

Slowfaster will be doing backflips. On the other hand the price of goods and services goes up on the first day of the new year.


Jorge Estrada

How will this affect welfare payments? Will it become practical to get a job? Will work become expected first option?


kayaknut

Welfare payments will go up, as well as any job tied to the minimum wage, even if they currently make more. Some jobs that pay more than the minimum are based on what happens to the minimum, so if it goes up it is required that their wages goes up the the same amount or sometimes the same percentage. So with this increase of 10% expect some other salaries, welfare payouts and such to also go up at least 10%, i.e. public sector salaries.


Mitch C

I am all for assisting those who fall on hard times; welfare should last for about a month, after that welfare should become work-fare. If you expect a check, those taxed to provide that check should expect that the feceipient work for it. There were many exceptional projects completed during the 1930s under government supervision. There is no reason that the government can steal from me in the form of taxation without some form of benefit accruing to society as a whole. Just giving money away creates a dependency that robs the recipient of the incentive to seek the American dream: a good paying middle class job while benefiting society as a whole


TaxMeAgain

You can’t fix lazy.


Mitch C

You are correct.. We just shouldn’t be required to pay for it.


kettle

Lol, You are not required to pay, no one can make you.


Lot’s of room in Arizona >>>>>>>>


racket

Quartzite’s a hell of a long way for a Big Mac, even if it’s $1.30 cheaper.


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