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Minimum wage to increase to $9 on July 1

Posted: June 30, 2014 6:23 p.m.
Updated: June 30, 2014 6:23 p.m.
 

California’s minimum wage rises from $8 per hour to $9 per hour effective July 1.

The change is being greeted by differing reactions depending on whether you are a worker or an employer.

Although minimum wage workers will see an increase in pay, some businesses may have to lay off workers and make other operational changes if they can’t afford the increase, according to those against the wage hike.

The minimum wage in California is scheduled to rise again to $10 per hour on Jan. 1, 2016.

With this increase, California will surpass Washington for the highest minimum wage in the country.

“When you raise the price of employment, guess what happens? You get less of it,” House Speaker John Boehner said on Feb. 14. “Why do we want to make it harder for small employers to hire people?”

This minimum wage bump will be the largest in California’s history, with the last increase being 50 cents in 2008 according to the Department of Industrial Relations.   

“We have a lot of evidence on what happens when you raise the minimum wage,” economist Paul Krugman told The New York Times. “And the evidence is overwhelmingly positive: Hiking the minimum wage has little or no adverse effect on employment while significantly increasing workers’ earnings,”

There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices employed under the State Division of Apprenticeship Standards.

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