Each state has its own unique way of handling the minimum wage. California's statewide minimum wage has had a roller coaster of a journey, while each city and county within the state has struck up its own laws or rules to deal with the less than livable wage.
Lawmakers have recently "struck a tentative deal" with labor unions across the state to raise the California wage from $10.50 an hour next year, gradually increasing to $15 an hour by 2023. This will put California at the top of the list as the state with the highest minimum wage. It will also keep some costly campaigns from seeing the light of day.
Although the deal will not be formally made public until Monday, the deal was confirmed by an anonymous source of the LA Times this Saturday, March 26.
Governor Jerry Brown is expected to make a public announcement in the next day or so.
This compromise will put an end to the minimum wage dispute. According to the LA Times, Brown has been in heated debates with union leaders for a while, trying to come up with a solution to how they can make the minimum wage a living wage.
According to a document obtained by The Times, the negotiated deal would boost California's statewide minimum wage from $10 an hour to $10.50 on Jan. 1, 2017, with a 50-cent increase in 2018 and then $1-per-year increases through 2022. Businesses with fewer than 25 employees would have an extra year to comply, delaying their workers receiving a $15 hourly wage until 2023.
Any other minimum wage increases within the cities and counties will henceforth be linked to price inflation, and can be temporarily blocked by the governor in the case of a financial crisis.
Brown initially refused to meet with union leaders following his signing off on a wage increase in 2013. But once he learned the unions were prepared to take their grievances directly to voters, he gave them his full attention.
Sources say the Legislation could vote on the new deal as early as the end of the week if it is added into an amended bill from 2015. If this happens, California will be a step ahead of other states, like New York, who are attempting to raise their own wages.
This may also add fuel to the presidential debate fire. Both Bernie Sanders and Hillary Clinton have voiced their approval for a minimum wage increase.
"The proposal in Sacramento goes beyond private-sector hourly wages by including a gradual addition of up to three new paid sick days for government workers who provide in-home care to the disabled."
Governor Brown warned lawmakers that the state budget could face a $4-billion-a-year increase if public-sector care workers were given a $15 an hour wage. But, according to Brown's philosophy, the gradual increase of the state wage will help negate the adverse financial effects.