The California State Assembly approved a measure Thursday to raise the statewide minimum wage to $15 an hour, marking a major victory for advocates.
The bill now moves to the state Senate where it is also expected to pass. Democrats, who usually support the $15 minimum wage, have a majority in both the Senate and Assembly. At the moment, the $15 minimum wage has only passed on the city level across the country, but California, along with a few other states, are fighting to be the first.
“While we have made great strides in recovering from the economic recession, we know the bulk of that growth has been to the benefit of the top 1 or 2 percent,” Democratic Assemblyman Roger Hernandez told The Associated Press. “Too many workers are working full-time for poverty wages.”
Those in support of the policy said it could help address income inequality, but critics aren’t so sure. Those who earn low wages may end up earning more money, but employers may also cut back on workforce or increase prices to overcome the added cost of labor. The state currently has a $10.00 minimum wage.
California Democratic Gov. Jerry Brown has been hesitant to embrace the $15 minimum wage out of concern it could harm the state economy. He opposed a union-backed measure that was already approved for a general vote on the November ballot. Brown and lawmakers eventually agreed to a measure they said addresses the economic concerns, while making the ballot vote void.
The current measure includes a longer phase-in period among other stimulation in the hopes of mitigating financial stress. American Action Forum Labor Policy Director Ben Gitis said the current measure could still cost the state over 700,000 jobs statewide. The University of California, Berkeley said the increase will not have an overly negative impact on employment or businesses.
The proposal could put California on track to have the first statewide $15 minimum wage but New York is not far behind. Oregon recently passed a measure designed to phase in a $13.50 minimum wage by 2022.
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