On Monday, California Gov. Jerry Brown and legislative and labor leaders joined together on Monday to announce the raise of California's minimum wage to $15 per hour by January 2022. The landmark deal could make California the first state ever to make a huge advancement in wages for workers.
The proposed $15 an hour rate would be the highest minimum wage in the United States. Senate leader Kevin de Leon stated that this increase will benefit nearly six million employees in California.
Under the proposed deal, the wage would increase to $10 per hour on Jan. 1 of 2022, and would increase by increment to $15 within a six-year period. Businesses with less than 25 employees would be given an extra year to adjust to the changes before they are required to comply. CBS reported that the governor would also be granted the authority to pause increases in case of budgetary downturns or economic crises.
"California is proving once again that it can get things done and help people get ahead," Gov. Brown said.
Advocates for wage increase praised the proposal, calling it a victory that could spark progress nationally. However, experts opine that the plan will crush smaller employers who wouldn't be able to afford a $15 an hour minimum wage.
Jeffrey Clemens of the University of California in San Diego said the wage increase might force workers to lose their job instead of benefitting from the raise.
According to Reuters, the California wage increase bill will have to gain support from moderate Democrats, who are known for being business-friendly. It has, however, a popular supporter -Democratic presidential candidate Senator Bernie Sanders, who has laid out in his platform a proposal to increasing the federal minimum wage to $15 an hour by 2020.
Several other states are also pushing to raise the minimum wage to $15 an hour by 2020.
In New York, Gov. Andrew M. Cuoma is planning to raise the minimum wage to $15 in New York City by 2019, and have it applicable across the state by July 2021.
New York Times reported that the tentative California law stems from union leaders pushing to take the matter to a vote this November through an initiative. Union leaders may opt to rescind the call for initiative if they are satisfied with the terms of the proposed deal and agree with it.
Fourteen other states and cities have proposed wage increases ranging from $10 to $15 an hour.
