Amended in Senate June 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 10


Introduced by Assembly Member Alejo

December 3, 2012


An act to amend Section 1182.12 of the Labor Code, relating to wages.

LEGISLATIVE COUNSEL’S DIGEST

AB 10, as amended, Alejo. Minimum wage: annual adjustment.

Existing law requires that, on and after January 1, 2008, the minimum wage for all industries be not less than $8.00 per hour.

This bill would increase the minimum wage, on and after January 1, 2014, to not less than $8.25 per hour. The bill would further increase the minimum wage, on and after January 1, 2015, to not less than $8.75 per hour,begin delete andend delete on and after January 1, 2016, to not less than $9.25 per hourbegin insert, on and after January 1, 2017, to not less than $9.50 per hour, and on and after January 1, 2018, to not less than $10 per hourend insert.

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This bill would provide for an adjustment to the hourly minimum wage beginning on January 1, 2017, and annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission from adjusting the minimum wage downward and from adjusting the minimum wage upward if the average percentage of inflation for the previous year was negative. The bill would require the Industrial Welfare Commission to publicize the automatically adjusted minimum wage.

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This bill would provide that its provisions not be construed to preclude an increase in the minimum wage greater than the formula would provide.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1182.12 of the Labor Code is amended
2to read:

3

1182.12.  

begin delete(a)end deletebegin deleteend deleteNotwithstanding any other provision of this part,
4on and after January 1, 2014, the minimum wage for all industries
5shall be not less than eight dollars and twenty-five cents ($8.25)
6per hourbegin delete andend deletebegin insert,end insert on and after January 1, 2015, the minimum wage for
7all industries shall be not less than eight dollars and seventy-five
8cents ($8.75) per hourbegin delete andend deletebegin insert,end insert on and after January 1, 2016, the
9minimum wage for all industries shall be not less than nine dollars
10and twenty-five cents ($9.25) per hourbegin insert, on and after January 1,
112017, the minimum wage for all industries shall be not less than
12nine dollars and fifty cents ($9.50) per hour, and on and after
13January 1, 2018, the minimum wage for all industries shall be not
14less than ten dollars ($10) per hourend insert
.

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15(b) (1) Except as provided in paragraph (3), the minimum wage
16shall be automatically adjusted on January 1 of each year,
17commencing on January 1, 2017, to maintain employee purchasing
18power diminished by the rate of inflation that occurred during the
19previous year.

20(2) The minimum wage adjustment shall be made by multiplying
21the minimum wage in effect on December 31 of the previous year
22by the percentage of inflation that occurred during that year, and
23by adding the product to the wage in effect during that year. The
24resulting total shall be rounded off to the nearest five cents ($0.05).
25The Industrial Welfare Commission shall publicize the
26automatically adjusted minimum wage.

27(3) The Industrial Welfare Commission shall not adjust the
28minimum wage pursuant to this subdivision if the average
29percentage of inflation for the previous year was negative.

30(4) For purposes of this subdivision, the following terms have
31the following meanings:

P3    1(A) “Percentage of inflation” means the percentage of inflation
2specified in the California Consumer Price Index for All Urban
3Consumers, as published by the Department of Industrial Relations,
4Division of Labor Statistics and Research, or its successor index.

5(B) “Previous year” means the 12-month period that ends on
6August 31 of the calendar year prior to the adjustment.

7(c) The Industrial Welfare Commission shall not reduce the
8minimum wage prescribed by this section.

9(d) This section shall not be construed to preclude an increase
10of the minimum wage by the Industrial Welfare Commission in
11an amount that is greater than the rate calculated pursuant to
12subdivision (b).

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