California Legislature—2013–14 Regular Session

Assembly BillNo. 10


Introduced by Assembly Member Alejo

December 3, 2012


An act to amend Section 1182.12 of the Labor Code, relating to wages.

LEGISLATIVE COUNSEL’S DIGEST

AB 10, as introduced, Alejo. Minimum wage: annual adjustment.

Existing law requires that, on and after January 1, 2008, the minimum wage for all industries be not less than $8.00 per hour.

This bill would increase the minimum wage, on and after January 1, 2014, to not less than $8.25 per hour. The bill would further increase the minimum wage, on and after January 1, 2015, to not less than $8.75 per hour, and on and after January 1, 2016, to not less than $9.25 per hour.

This bill would provide for an adjustment to the hourly minimum wage beginning on January 1, 2017, and annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission from adjusting the minimum wage downward and from adjusting the minimum wage upward if the average percentage of inflation for the previous year was negative. The bill would require the Industrial Welfare Commission to publicize the automatically adjusted minimum wage.

This bill would provide that its provisions not be construed to preclude an increase in the minimum wage greater than the formula would provide.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1182.12 of the Labor Code is amended
2to read:

3

1182.12.  

begin insert(a)end insertbegin insertend insert Notwithstanding any other provision of this part,
4on and after January 1,begin delete 2007end deletebegin insert 2014end insert, the minimum wage for all
5industries shall be not less thanbegin delete seven dollars and fifty cents ($7.50) end delete
6begin deleteper hour, and on and after January 1, 2008, the minimum wage for end delete
7begin deleteall industries shall be not less than eight dollars ($8.00) per hourend delete
8begin insert eight dollars and twenty-five cents ($8.25) per hour and on and end insert
9begin insertafter January 1, 2015, the minimum wage for all industries shall end insert
10begin insertbe not less than eight dollars and seventy-five cents ($8.75) per end insert
11begin inserthour and on and after January 1, 2016, the minimum wage for all end insert
12begin insertindustries shall be not less than nine dollars and twenty-five cents end insert
13begin insert($9.25) per hourend insert.

begin insert

14(b) (1) Except as provided in paragraph (3), the minimum wage
15shall be automatically adjusted on January 1 of each year,
16commencing on January 1, 2017, to maintain employee purchasing
17power diminished by the rate of inflation that occurred during the
18previous year.

end insert
begin insert

19(2) The minimum wage adjustment shall be made by multiplying
20the minimum wage in effect on December 31 of the previous year
21by the percentage of inflation that occurred during that year, and
22by adding the product to the wage in effect during that year. The
23resulting total shall be rounded off to the nearest five cents ($0.05).
24The Industrial Welfare Commission shall publicize the
25automatically adjusted minimum wage.

end insert
begin insert

26(3) The Industrial Welfare Commission shall not adjust the
27minimum wage pursuant to this subdivision if the average
28percentage of inflation for the previous year was negative.

end insert
begin insert

29(4) For purposes of this subdivision, the following terms have
30the following meanings:

end insert
begin insert

31(A) “Percentage of inflation” means the percentage of inflation
32specified in the California Consumer Price Index for All Urban
33Consumers, as published by the Department of Industrial Relations,
34Division of Labor Statistics and Research, or its successor index.

end insert
begin insert

P3    1(B) “Previous year” means the 12-month period that ends on
2August 31 of the calendar year prior to the adjustment.

end insert
begin insert

3(c) The Industrial Welfare Commission shall not reduce the
4minimum wage prescribed by this section.

end insert
begin insert

5(d) This section shall not be construed to preclude an increase
6of the minimum wage by the Industrial Welfare Commission in an
7amount that is greater than the rate calculated pursuant to
8subdivision (b).

end insert


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