“This increase in the minimum wage is California’s second increase in 18 months”, said Labor Commissioner Julie Su in a press release.
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Economists argue about the pros and cons of a higher minimum wage.
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The raise equals an additional $14 a week for someone working 40 hours, or $728 a year.
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Beginning in 2019, it will go up with inflation every year unless unemployment is high.
Alaskans voted overwhelmingly in November 2014 in favor of a ballot measure to increase the minimum wage for $7.75 an hour to $8.75 an hour on January 1, 2015, and to $9.75 an hour on January 1, 2016.
“It gets problematic when it comes to city and county lines”, said Assemblyman Scott Wilk.
“I would say a more realistic perspective is that for some employees who don’t lose hours of their jobs, that may be the case, for other employees, that’s not going to be the case”, said Michael Saltsman, research director at the Employment Policies Institute. The areas that are not part of these cities are considered to be unincorporated County territory, according to the L.A. County Department of Regional Planning. For the one million people living in these areas, the Board of Supervisors and County Departments provide the municipal services.
The increase follows the first report of the Low Pay Commission, an independent body tasked with examining the appropriate rate of the statutory minimum wage.
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In tandem with the pay increases, employer PRSI thresholds are being adjusted from tomorrow to ensure that an increased PRSI burden does not fall on minimum wage employers. The agency investigates all wage-payment complaints it receives, as required by state law.
