CHA News Article

Legislature Passes Bill to Increase State’s Minimum Wage
Governor will sign the bill Monday

Today, the Legislature passed SB 3 (Leno, D-San Francisco) to increase California’s minimum wage to $15 an hour by 2022 for employers with 26 or more employees. The bill begins with a 50-cent increase per year over the next two years, then increases to $1 per year through Jan. 1, 2022. The Governor can pause the increase in years of economic downturn or budget deficit, but no more than two times. The bill would also tie further increases to the consumer price index and provides small businesses (those with 25 or fewer employees) with an additional year to comply with each increase.

Gov. Brown announced his support for the plan over the weekend when a deal was struck between the Administration and labor representatives. The Governor conveyed his support for this proposal after comments about the timeline for the recently qualified SEIU-UHW minimum wage initiative that would have raised the minimum wage to $15 per hour by 2020.