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California and New York raise minimum wage to $15 per hour

April 05, 2016

The governors of California and New York yesterday signed legislation that will eventually increase the minimum wage in those states to $15 per hour.

California Gov. Edmund G. Brown Jr. yesterday signed legislation raising the minimum wage to $15 per hour statewide in 2022.

Under the California legislation, the minimum wage will rise to $10.50 per hour on Jan. 1, 2017, for businesses with 26 or more employees, and then rise each year until reaching $15 per hour in 2022. The bill provides businesses with 25 or fewer employees additional time to phase in the increases.

The legislation provides “off-ramps” to pause wage hikes if negative economic or budgetary conditions emerge.

“This is about economic justice, it's about people,” said Brown. “This is an important day, it's not the end of the struggle but it's a very important step forward.”

Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5% (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index.

The new California law also phases in sick leave for in-home supportive services workers starting in July 2018.

New York Gov. Andrew M. Cuomo also yesterday signed legislation enacting a statewide $15 minimum wage plan and 12-week paid family leave policy in New York State. The legislation was passed as part of the 2016-17 state budget.

“By moving to a $15 statewide minimum wage and enacting the strongest paid family leave policy in the nation, New York is showing the way forward on economic justice,” said Cuomo. “These policies will not only lift up the current generation of low-wage workers and their families, but ensure fairness for future generations and enable them to climb the ladder of opportunity. I am proud to sign these programs into law, because they will ensure a stronger, fairer and brighter future for all New Yorkers.”

For workers in New York City employed by businesses with at least 11 employees, the minimum wage would rise to $11 at the end of 2016, then another $2 each year after, reaching $15 on Dec. 31, 2018.

For workers in businesses with 10 employees or fewer, the minimum wage would rise to $10.50 by the end of 2016, then another $1.50 each year after, reaching $15 on Dec. 31, 2019.

In Nassau, Suffolk and Westchester Counties, the minimum wage would increase to $10 at the end of 2016, then $1 each year after, reaching $15 on Dec. 31, 2021. In the rest of the state, the minimum wage would increase to $9.70 at the end of 2016, then another .70 each year after until reaching $12.50 on Dec. 31, 2020 – after which will continue to increase to $15 on an indexed schedule to be set by the director of the Division of Budget in consultation with the Department of Labor.

The New York bill also provides a safety valve to the increases. Beginning in 2019, the state DOB director will conduct an annual analysis of the economy in each region and the effect of the minimum wage increases statewide to determine whether a temporary suspension of the scheduled increases is necessary.