California's Legislature is considering AB10 this
session, which would increase California's minimum wage from the current $8 per
hour to $8.25 per hour next year, to $8.75 per hour in 2015, and to $9.25 per
hour in 2016. Beginning in 2017 and thereafter, the minimum wage would be
automatically adjusted upward based on the state's inflation rate. Recent
legislative efforts to increase California's minimum wage rate have failed and
it is not clear whether this bill will fare differently. However, the
bill did recently pass the Assembly Labor and Employment Committee.
California's minimum wage is already one of the highest in the country.
Only a handful of states have minimum wage rates higher than
On the federal level, legislation has also been introduced
to raise the federal minimum wage from the current $7.25 per hour to $8.20 per
hour three months after the legislation is passed, to $9.15 per hour one year
after the legislation is passed, and to $10.10 per hour two years after the
legislation is passed. Starting the third year after the legislation is
passed, the federal minimum wage would be automatically adjusted upward based
on the Consumer Price Index. The federal legislation, known as the Fair
Minimum Wage Act of 2013, would also increase the minimum wage for tipped
employees over the next three years from $2.13 per hour to 70% of the minimum
We will post developments on this and other
employment-related legislation here.
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