- Associated Press - Monday, March 28, 2016

SACRAMENTO, Calif. (AP) - The Latest on the proposed increase in California’s minimum wage (all times local):

4:20 p.m.

Economists are warning about the potential for unintended consequences from California leaders’ plans to boost the state’s minimum wage to the highest in the nation.

Jeffrey Clemens, an economics professor at the University of California at San Diego, said Monday that an unknown portion of low-wage workers will lose their jobs instead of getting raises.

David Neumark, an economics professor at the University of California, Irvine, says an increase from $10 to $15 by 2022 would reduce employment among the least-skilled workers by at least 5 to 10 percent.

Neumark says that the effects would vary by geography. In high-wage counties such as San Francisco and Santa Clara, about 22 percent of workers would get a raise. In places such as Fresno and Merced counties, about half the workers would.

____

2:45 p.m.

The National Federation of Independent Business is warning against plans by Democratic and labor leaders to boost California’s minimum wage to the highest in the nation.

The group says increasing the hourly minimum from the current $10 to $15 by 2022 would add to an already onerous burden on small businesses.

Republican Chad Mayes, the Assembly minority leader, said Monday that the increase could wind up harming low- and middle-income workers by adding to the overall cost of living.

Gov. Jerry Brown, who negotiated the deal, says business will have little choice but to eventually accept the proposed legislation. That’s because it is more conservative than alternatives pushed by labor organizations.

One union-backed initiative has already qualified for the ballot. A second, competing measure is also trying to qualify.

___

1:10 p.m.

Gov. Jerry Brown is hailing as a matter of economic justice a proposal to make California the first state to raise the minimum wage to $15.

The Democratic governor joined legislative and labor leaders Monday in announcing an agreement to raise the rate gradually to $15 an hour by January 2022.

Senate leader Kevin de Leon, a Democrat from Los Angeles, says the increase will aid nearly 6 million Californians.

He and Brown touted the proposal as California leading the way on easing income equality.

Businesses with fewer than 25 employees would get an additional year to phase in the increases. The governor could pause the increases in times of budgetary or economic downturns.

Wages would increase to keep up with inflation after 2023.

____

11:50 a.m.

Gov. Jerry Brown and other California leaders are discussing for the first time what his office is calling a “landmark deal” to raise the state’s minimum wage to $15 an hour.

The Democratic governor plans to outline on Monday a tentative agreement he reached with labor unions to boost the state’s minimum wage from $10.

The increase would give California by far the largest statewide minimum wage.

Democratic state Sen. Mark Leno of San Francisco says that if an agreement is finalized, it would go before lawmakers by replacing his minimum-wage bill that stalled last year.

Legislative approval of a minimum-wage package would avoid taking the issue to the ballot. One union-backed initiative has already qualified for the ballot, and a second, competing measure is also trying to qualify.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide