Opinions differ about the minimum wage increase in California. Some employers express concern about the additional expense and whether this means hiring fewer workers and cutting hours to cover costs. While some employees worry that the increase is not enough to cover living expenses. Whether the news makes you feel happy or concerned, this is the first wage increase in California after six long years.
The minimum wage increases to $9 an hour, effective Tuesday, July 1, 2014. This is a 12.5% increase from $8 an hour. Even better news, the minimum wage will increase again to $10 an hour, starting on January 1, 2016. Read Labor Code §1182.12 for the full text of the law.
How about mentioning that businesses will increase prices in order to pay higher wages to their employees? But it’s all great news, right?
How about mentioning that more businesses will continue to flee California. The businesses that stay, will continue to seek automation in their production to get rid of the poor abused worker. But it’s still all great news, right? Oh, and don’t forget your kids happy meal just went up in price.