AP Photo/Nick UtCalifornia Gov. Jerry Brown speaks prior to signing a bill raising the California minimum wage in Los Angeles Wednesday

AP Photo/Nick UtCalifornia Gov. Jerry Brown speaks prior to signing a bill raising the California minimum wage in Los Angeles Wednesday

Governor signs bill hiking California minimum wage

Calling it a “matter of justice,” Gov. Jerry Brown put his signature on a bill that will hike California's minimum wage to $10 an hour within three years, making it one of the highest rates in the nation.

The legislation signed Wednesday at a ceremony in downtown Los Angeles will gradually raise the current minimum of $8 an hour to $9 on July 1, 2014, then to $10 on Jan. 1, 2016.

The increase is the first to the state's minimum wage in six years and comes amid a national debate over whether it's fair to pay fast-food workers, retail clerks and others wages so low that they often have to work second or third jobs.

Brown called the bill an overdue piece of legislation that will help working-class families and close the gap between “workers at the bottom and those who occupy the commanding heights of the economy.”

The governor was joined by state legislators and business owners who supported the measure, saying increased wages would boost the state's economy.

The state Senate approved AB10 on a 26-11 vote Sept. 12, and the Assembly followed hours later on a 51-25 vote. Both chambers voted largely along party lines.

Miguel Aguilar, a worker at a Los Angeles car wash, thanked the governor for signing the bill.

“We work really long hours,” said Aguilar, who has a union contract. “Now, with the increase in the minimum wage, we'll be able to sustain an income that can support our families.”

Supporters said the bill by Assemblyman Luis Alejo, D-Watsonville, would help workers left behind during the recent recession.

“A higher minimum wage will mean much-needed money in the pockets of millions of workers in the state, and that's good news for businesses throughout California that will benefit from increased consumer spending,” Gary Gerber, founder and CEO of Sun Light & Power in Berkeley, said in a statement.

In opposing the measure, Republican lawmakers said increased wages would encourage businesses to cut jobs and automate.

The California Chamber of Commerce was against the bill, saying it will drive up businesses' costs by ratcheting up other wages and workers' compensation payments.

“Small business owners will now be forced to make tough choices including reducing employee hours, cutting positions entirely, and for many, closing their doors altogether,” said John Kabateck, head of the California branch of the National Federation of Independent Business.

Federal law sets a minimum wage of $7.25 per hour, but California is among 19 states and the District of Columbia that set a higher state minimum wage.

The federal minimum provides $15,080 a year assuming a 40-hour work week, which is $50 below the federal poverty line for a family of two. More than 15 million workers nationally earn the national minimum, which compares with the median national salary of $40,350, according to the U.S. Bureau of Labor Statistics.

President Barack Obama has sought an increase of the federal minimum wage to $9 an hour.

Among states, Washington has the top minimum wage at $9.19 an hour, an amount pegged to rise with inflation. But some cities have set higher rates, including San Francisco, which has the nation's highest minimum wage at $10.50 an hour.

The California bill does not index the rate to inflation, meaning it would remain at $10 per hour unless the Legislature raises it again in the future.CaliforniaCalifornia NewsJerry BrownMinimum wage

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Gov. Gavin Newsom, show here speaking at the City College of San Francisco mass vaccination site in April, faces a recall election due to anger on the right over his handling of the pandemic, among other issues. (Kevin N. Hume/S.F. Examiner)
Why Gavin Newsom’s popularity could work against him in the recall election

Top pollster: ‘We’re not seeing the Democrats engaged in this election. And that may be a problem…’

Passengers ride the 14-Mission Muni bus on Friday, March 12, 2021. (Jordi Molina/Special to S.F. Examiner)
Transit officials fear Free Muni pilot could hurt already-strained service levels

Supporters say fare cuts could increase ridership, help low-income residents

The vacant property at 730 Stanyan St. in the Haight currently houses a safe sleeping site for the homeless. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
Affordable housing project on former McDonald’s site delayed as city adds units

The start of construction on an affordable housing project on the site… Continue reading

Visitors read a notice hanging on the Polk Street entrance to City Hall on Thursday, March 26, 2020, shortly after the building was closed. (Kevin N. Hume/S.F. Examiner)
City Hall reopening to the public on June 7 after long closure due to COVID-19

San Francisco will reopen City Hall to the public on June 7… Continue reading

Historic streetcars are undergoing testing on The Embarcadero to prepare for their return to service on May 15.<ins></ins>
What to expect for Muni Metro’s relaunch on May 15

Significant service restoration includes downtown subway tunnels and historic streetcars

Most Read