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One to Keep An Eye On: Automatic Minimum Wage Increase Law (California )


As with many labor and employment law related cases and bills being debated around the country, there are always a few that stand out.  This is one to keep an eye on.  


California bill SB 3 proposes to raise the minimum wage to $11 per hour by January 1, 2016 and to $13 by July 1, 2017.  When you look at this bill, it could potentially raise California's minimum wage by over 40% over the next two years.  Note, California minimum wage currently sits at $9 per hour. 

The bill further provides additional, automatic wage increases based on future increases in inflation beginning January 1, 2019 and then again every January 1 thereafter. 

For those keeping track, a similar bill was introduced last year which would have increased the minimum wage to $11 in 2015 and an additional $1 for the next two years.  That bill did not become law. 

Given the highlighted focus recently in regard to minimum wage increases (and California's approval in 2013 of a bill that will raise the minimum wage to $10 per hour effective January 1, 2016), SB 3 could have a realistic chance of becoming law.

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