Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


             California Governor Set to Implement $15 Minimum Wage

   by VOA News

   California Governor Jerry Brown will sign the state's $15 minimum wage
   plan into law Monday, making the progressive state the first to impose
   such a wage hike.
   Under the new plan, the state's $10 minimum wage will rise 50 cents
   next year and then to $11 in 2018.  After that, the wage mandate will
   rise $1 each January until 2022, unless the governor delays raising the
   minimum wage because of an economic recession.

   Once the minimum wage reaches $15, it will rise with inflation.
   Businesses with 25 or fewer employees will be given an extra year to
   comply with the law.

   Most Republicans and moderate Democrats opposed the wage hike, arguing
   that it was rushed through the legislature and that it would damage the
   economies in poorer parts of the state where a $15 minimum wage is out
   of step with the cost of living.

   The bill, passed by the state's legislature Thursday, came as a
   compromise between Brown and the labor unions after the groups
   threatened to launch a competing ballot initiative with a shorter
   deadline for implementing the $15 mandate and fewer government
   safeguards.

   In California, around 2.2 million people make the minimum wage,
   according to University of California Irvine economics professor David
   Neumark. Between 110,000 and 220,000 of those people are expected to
   lose their jobs because of the new mandates.

   Cost to taxpayers

   According to a legislative analysis, the measure will cost California
   taxpayers $3.6 billion per year in higher salaries for government
   workers.

   Despite the warnings from Republicans and business groups, Brown is
   moving ahead with the plan, though he did include a few options in case
   the state's economic outlook changes in the future.

   "California is proving once again that it can get things done and help
   people get ahead," Brown said earlier this week while introducing the
   deal.  "This plan raises the minimum wage in a careful and responsible
   way and provides some flexibility if economic and budgetary conditions
   change."

   The plan will allow the governor to pause wage hikes if future economic
   or budgetary shortfalls emerge.  Each year, by September 1, the
   governor can delay the next year's scheduled wage increase if there is
   expected to be a budget deficit or negative job growth and retail
   sales.

   California already has the country's highest statewide minimum wage,
   tied with Massachusetts at $10.  Washington, D.C., has a minimum wage
   of $10.50. Several other cities, including Los Angeles and Seattle
   recently approved $15 minimum wages.
     __________________________________________________________________

   [1]http://www.voanews.com/content/california-minimum-wage/3268195.html

References

   1. http://www.voanews.com/content/california-minimum-wage/3268195.html