State minimum wage increase, along with other laws, going into effect Tuesday
Video Report By Richard Allyn, Reporter - bio | email
SACRAMENTO, Calif. (AP/CBS 8) - California's minimum wage will rise to $9 an hour when a new law takes effect on Tuesday and provides workers with the first such increase since 2008.
That amount will increase again to $10 an hour starting on Jan. 1, 2016, under AB10, which Gov. Jerry Brown signed into law last fall.
"This first modest increase will help put more money in the pockets of hardworking Californians to provide food, clothes and housing for their families," Assemblyman Luis Alejo, D-Salinas, said in a statement.
"Everybody's on board, were all in this together," said Mark Arabo of the Neighborhood Market Association. "No one should work full time and live in poverty."
The non-profit Neighborhood Market Association represents 2,400 small businesses in California, as well as their 21,000 employees. Arabo told CBS News 8 that while some businesses may need to raise prices to offset the wage hike, he believes Governor Brown's plan is balanced and measured.
"Sure, you'll have some business owners that will struggle," he said, "but raising it from eight to nine (dollars), the last increase was 2008. It's a lot more palatable, and his approach was a lot better."
AB10 is one of several laws that take effect in July. Others will provide additional protections to victims of domestic violence, expand the state's paid family leave program, and give tax breaks to manufacturers.
California's minimum wage increase comes amid a national debate about low-wage workers who have seen their purchasing power decline in recent years.
President Barack Obama has pushed Congress to raise the federal minimum wage to $10.10 an hour, but the proposal hasn't gained much traction. Instead, he has encouraged cities and states to raise those wages on their own.
New York City, Chicago, San Francisco and Oklahoma City are among the municipalities debating minimum wage increases. In early June, the Seattle City Council voted to raise the minimum wage within the city to $15 an hour, starting next April and phasing in over several years.
Currently, the highest minimum wage in the country is in SeaTac, a Washington state town of about 25,000 that is home to Seattle-Tacoma International Airport. The $15-an-hour minimum wage approved by voters took effect in January for workers at major hotels and parking lots, and the state Supreme Court will decide whether it also applies to workers at the airport, which is run by a separate authority.
Washington has the highest minimum wage of any state at $9.32 an hour.
In California, a bill that would have raised the state's minimum wage even higher and tied it to inflation failed in the Legislature this year.
Other bills that take effect Tuesday include:
- AB93 and SB90 allow manufacturers and certain researchers and developers to obtain a partial exemption of sales and use tax equal to 4.2 percent on some manufacturing and equipment purchases through July 1, 2022. The measures were authored by Sens. Cathleen Galgiani, D-Stockton, and Anthony Cannella, R-Ceres.
- AB161 permits a court, when issuing a domestic violence restraining order, to restrain one party from changing insurance coverage. It was authored by Assemblywoman Nora Campos, D-San Jose.
- AB176 by Assemblywoman Nora Campos, D-San Jose, gives domestic abuse victims greater protection by having police follow the toughest protective order when there are multiple or conflicting orders.
- AB218 says state and local government agencies must determine a job applicant's minimum qualifications before obtaining and considering information regarding the applicant's conviction history. It was authored by Assemblyman Roger Dickinson, D-Sacramento.
- AB1121 by Assembly Speaker Toni Atkins, D-San Diego, will help transgender people change their names by eliminating the requirement that people announce the name change in a newspaper before seeking a court order for it.
- SB652 by Sen. Mark DeSaulnier, D-Concord, requires property sellers to disclose to homebuyers all pre-litigation claims presented to the builder.
- SB770 broadens the definition of family under Family Paid Leave to allow workers to receive partial wage replacement benefits while taking care of seriously ill siblings, grandparents, grandchildren and parents-in-law. The bill was authored by Sens. Hannah-Beth Jackson, D-Santa Barbara, and Mark DeSaulnier, D-Concord.