What you need to know about the minimum wage increase in California. 

Jerry Brown

On Monday, Gov. Jerry Brown signed a bill that would gradually raise the minimum wage to $15 in California by the end of 2022.

The governor signed SB 3 during a 9 a.m. ceremony at the Ronald Reagan State Building in downtown Los Angeles. The State Assembly and Senate both approved the legislation Thursday, despite opposition from Republicans and business leaders. The wage hike will affect 5.6 million workers, or about one-third of the statewide workforce.

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

How will wages raise under this plan?

Currently, the minimum wage in California is $10 an hour. The minimum wage would reach $15 in 2022, after which it will continue to rise each year by up to 3.5 percent to account for inflation. Here’s how wages would increase year-by-year under this legislation. However,  businesses with 25 or fewer employees would get an extra year to raise their wage, so that means some workers will be paid $15 by 2023.

2016: $10/hr.

2017: $10.50/hr.

2018: $11/hr.

2019: $12/hr.

2020: $13/hr.

2021: $14/hr.

2022: $15/hr.

What if there are declines in the economy? How “sticky” is this bill?

The legislation does give the governor the ability to temporarily halt the raises if there is a forecasted budget deficit of more than one percent of annual revenue, or due to poor economic conditions such as declines in jobs and retail sales.

Originally posted 2016-04-04 08:19:52.

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