Minimum Wage. Increases And Future Adjustments. Initiative Statute.
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1 University of California, Hastings College of the Law UC Hastings Scholarship Repository Initiatives California Ballot Propositions and Initiatives Minimum Wage. Increases And Future Adjustments. Initiative Statute. Follow this and additional works at: Recommended Citation Minimum Wage. Increases And Future Adjustments. Initiative Statute. California Initiative 1179 (2005). This Initiative is brought to you for free and open access by the California Ballot Propositions and Initiatives at UC Hastings Scholarship Repository. It has been accepted for inclusion in Initiatives by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact
2 October 31,2005 Trisha Knight, Initiative Coordinator NOV Office of the Attorney General Street INITIATIVE COORDINATOR Sacramento, CA ATTORNEY GENERAL'S OFFICE Dear Ms. Knight: Attached is a revised version of our minimum wage initiative (SA2005RF0112). Section 2. (f) has been added to the text. Also, the date in Section 2. (e) has been corrected to read January 1, request that a title and summary of the chief purpose and points of the proposed initiative measure be prepared so that we may begin gathering signatures. Sincerely, Barry ~ermanbon Californians For Fair Wages FPPC Number: Broadway #I 44, Sacramento CA Phone: (916) Fax: (916)
3 CALIFORNIA FAIR MINIMUM WAGE INITIATIVE SECTION 1 -Findings and Declarations The People of California find and declare that: At $6.75 per hour, the current minimum wage is so low that it does not allow fulltime workers enough income to adequately feed, clothe, house and provide health care and childcare for their families. A hll-time job at minimum wage is far too low to provide for California families' basic needs. Executive CEO pay increases while the minimum wage continues to fall. For the minimum wage to match the purchasing power it had in 1968, it would have to be $9.00 per hour. If it had kept up with productivity gains, it would be over $25.00 today. According to Business Week, the average CEO of a major corporation made 42 times the average hourly worker's pay in 1980, 85 times in 1990 and a staggering 53 1 times in Because good paying jobs are becoming so hard to find, it is more important than ever that California has a minimum wage that is fair and adequate; The purpose of the Minimum Wage Act of 2006 is to restore the purchasing power of the minimum wage and to help minimum wage workers lift themselves out of poverty; To achieve that purpose, the Fair Minimum Wage Act of 2006 will increase the minimum wage to $7.50 per hour in 2007, to $8.25 per hour in 2008, to $8.75 per hour in 2009 and index it for cost of living increases in the fhture. The current minimum wage is inadequate as a hndamental minimum labor standard for working Californians; California has the lowest minimum wage on the West Coast and by far the highest housing costs. Washington has a minimum wage of $7.35, Oregon has a minimum wage of $7.25, and Alaska has a minimum wage of $7.15. Washington, Oregon, and Nevada index their minimum wages to account for cost of living increases in the future. An increased minimum wage cannot be shown to have a negative impact on job growth. During the past six years, states with higher minimum wages than the Federal wage created more jobs than states at the Federal minimum wage level.
4 A fair minimum wage will help workers, businesses and communities alike because minimum wage workers will stay at their jobs longer and have more income to spend in their communities; SECTION 2 -Minimum Wage Increase and Indexing Section is added to the Labor Code to read: (a) Notwithstanding any other provision of this part, on and after January 1,2007, the minimum wage for all industries shall not be less than seven dollars and fifky cents ($7.50) per hour; on and after January 1, 2008, the minimum wage for all industries shall not be less than eight dollars and twenty five cents ($8.25) per hour, on and after January 1, 2009, the minimum wage for all industries shall not be less than eight dollars and seventy five cents ($8.75) per hour. The Industrial Welfare Commission or its successor shall, at a public meeting, adopt minimum wage orders applicable to all industries that are consistent with this section without convening wage boards, which wage orders shall be final and conclusive for all purposes. (b) (1) Beginning in 2010, the minimum wage is automatically adjusted on January 1 of each year to maintain employee purchasing power diminished by the rate of inflation that occurred during the previous year. (2) The automatically adjusted minimum wage is calculated by multiplying the minimum wage in effect on December 31 by the percentage of inflation that occurred during the previous year, adding this amount to the wage from the previous year, and rounding up the product to the nearest five cents ($0.05). The Industrial Welfare Commission or its successor shall publicize the automatically adjusted minimum wage annually to all employers. All employers shall post this notice in a place frequented by their employees.
5 (c) For purpose of this calculation, the following terms have the following meanings: (1) "Percentage of inflation" -means the percentage of inflation specified in the California Consumer Price Index for All Urban Consumers, as published by the Department of Industrial Relations, Division of Labor Statistics and Research, or its successor index. (2) "Previous Year" -means the 12-month period that ends on August 31 of the calendar year prior to the adjustment period. (d) This section may not be construed to either preclude an increase of the minimum wage by the Industrial Welfare Commission or its successor in an amount that is greater than the rate calculated pursuant to subdivision (b) or result in a reduction in the minimum wage. (e)'the first automatic inflation adjustment to the minimum wage shall occur on January 1, (f) The minimum wage shall not be decreased because of deflation in any year. SECTION 3 -Name of Act This statute shall be known as the Fair Minimum Wage Act of SECTION 4 -Severability It is the intent of the People that the provisions of this Act are severable and that if any provision of this Act, or the application thereof to any person or circumstances, is held invalid such invalidity shall not affect any other provision or application of this Act which can be given effect without invalid provision or application.
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