Minimum Wage Increase Bill Gaining Steam

Stimulating the economy starts with people having money to spend. That's one motivator behind Assemblymember Luis Alejo's push to increase the California minimum wage from $8 up to $8.25 per hour.

Assembly Bill 10, which Alejo (whose district includes Gilroy) wrote, passed the Assembly Labor and Employment Committee on Wednesday with a 5-2 vote. 

“AB 10 is about equity,” said Alejo. “It provides modest increases over time and implements a cost of living adjustment 5 years from now to help ensure equity for minimum wage workers in the long-term.”

If the bill eventually passes all necessary committees, the initial increase would occur in 2014, and would make its way up to $9.25 by 2016 with inflation-based increases after that each year.  

“We have created a system where we pay workers less but need them to spend more,” said Alejo. “That causes middle class families to fall down the economic ladder. It’s the reason our middle class is shrinking and the reason we are facing the largest gap between upper- and lower-income Californians in at least 30 years.”

According to Alejo's office, "opponents to the minimum wage contend that it is bad for business in a time when the economic environment is harsh." But Alejo argued just the opposite. 

“Raising the minimum wage puts more money in the pockets of workers struggling to provide food, clothes, and housing for their families. And when minimum wage workers have more money, they spend it,” he said.

AB 10 will next be considered by the Assembly Appropriations Committee.

What do you think of the bill? Should minimum wage go up? Tell us in the comments!