California minimum wage will raise to $9 in 2014, $10 by 2016
Governor Brown signed AB 10, which raises the state minimum wage from $8 to $9 per hour on July 1, 2014, and to $10 per hour by January 1, 2016.
It comes as no surprise that organized labor is behind this achievement after Unions lobbied heavily for the bill, both in the Legislature and at the governor's office. Proponents argued that raising the minimum wage will help workers provide for their families while increasing economic activity. About 3 of 5 minimum-wage earners are 26 or older. 2.4 million Californians are predicted to feel the impact of this new law. The 25% increase raises the minimum wage in California for the first time in five years.
Unions will have the right to bargain over the impact of the increase of the minimum wage. Because the minimum wage is required by law, employers must increase the wage of any employee earning less than minimum wage. However, this change may have an impact on other contractual terms and the Union has the right to bargain those impacts, if any.
As always, if there are questions about any of these issues please contact your labor law counsel. California has made history with this increase and the minimum wage should be enforced vigorously.