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California's Minimum Wage Increasing to $10.00 by 2016
In a move that will greatly improve the lives of millions of low-wage workers in California, Governor Brown signed AB 10 today to increase the minimum wage. The current hourly minimum wage rate of $8.00 per hour will increase to $9.00 per hour on July 1, 2014, and to $10.00 per hour on January 1, 2016.
California’s minimum wage has not increased since 2008. According to the California Budget Project, California’s minimum wage has lost significant purchasing power as it has failed to keep up with inflation – so much so that the $8.00 per hour rate has a purchasing power that is 31.3% below its value in 1968.
$8.00 an hour is not a living wage. People earning at this level have to work multiple jobs only to live in poverty. Janitors, domestic workers, security guards, construction workers, restaurant workers, hotel workers, and retail workers - among others - all stand to benefit from this much-needed increase.
By making AB 10 law, California takes an important first step toward fixing this problem, while better valuing the labor of its hard working residents.