Statewide Minimum Wage to Rise on New Year’s Day

December 12, 2017 8:00 am · 50 comments

The minimum wage for workers in California is going up on New Year’s Day, though wages in at least some cities in the San Francisco Bay Area are already above the new mandate, state officials said.

The minimum wage statewide will rise Jan. 1 to $11 per hour for businesses with 26 employees or more and $10.50 for businesses with 25 employees or less.

Workers that are not paid the minimum wage are urged to get in touch with the Labor Commissioner’s Office in their area to file a claim.

Gov. Jerry Brown signed legislation in 2016 making California the first state in the country to commit to a $15 per hour minimum wage.

As long as the economy is good and the budget allows, the minimum wage will be $15 an hour in 2022 at large businesses and in 2023 at small businesses.

Mr. White December 12, 2017 at 8:08 AM

On a similar note ,goods and services also expected to go up New Year’s Day. What happens when wages go up, , the amount of income tax collected also goes up, wooo hop! Dumb ass Democrats

anon December 12, 2017 at 8:57 AM

So….keep wages low?

Captain Bebops December 12, 2017 at 9:21 AM

Wages aren’t the problem it’s the ridiculous cost of living especially in the Bay Area. Raising the minimum wage was a one dimensional solution and yes will be the source of increasing cost of goods. We already have $12 sandwiches at restaurants where the same sandwich was only $5 a few short years ago.

So go ask your boss for raise or if you sell things be sure to increase your prices to cover your new increased cost of living and business. Seniors on SS ask Paul Ryan to increase your payouts rather than taking them away.

Round and round we go. Where we stop nobody knows but we might want to tally up a year from now how many businesses have closed over the coming year.

There were probably smarter solutions but such is life in the dystopian present.

Max December 12, 2017 at 12:30 PM

Stop acting like you know anything about economics.

ON DA December 12, 2017 at 12:59 PM

Not on my watch. Try living off the dedicated crumbs Mr.

Andrew December 12, 2017 at 6:17 PM

A federal gas tax and an additional gas tax is supposed to hit on the 1st as well. It has the earmarks if another housing bubble pop and another recession.

Mr. Fixit December 12, 2017 at 8:29 AM

$13 for a Big Mac??

It's Me December 12, 2017 at 8:50 AM

There has been one party running this state for how long?

ON DA December 12, 2017 at 1:01 PM

3 or more parties. Do your homework Me.

USA December 12, 2017 at 8:52 AM

Just in case you didn’t take economics in school, here’s how the world works.

Employee – $10/hr.
Burger – $5

Employee – $15/hr.
Burger – $8

Employee goes out to eat on his new $15/hr paycheck, only to find… it goes EXACTLY just as far as his $10/hr. paycheck did.

That’s why minimum wage jobs are part time “entry level learning skill” jobs and NOT career wages. Never have been, never will be.

Randy December 12, 2017 at 9:23 AM

Only he won’t buy a burger. He will buy clothes for his kid. You will buy the burger tie fund the wage increase.

Johnny Reb December 12, 2017 at 9:51 AM

Ok, I’ll bite. I’ll even let you have you take on burger flippers, though I don’t agree with it. Let’s move it up the food chain. How about the waitress at a sit-down diner? That used to be a low-paying job, but one that could keep a roof over your head. Not any longer. How about the framing carpenter? Now SURELY no one is so naive to think that is a career? That’s a job for college kids on summer vacation or immigrants that hang out at HomeDepot. It’s not a SERIOUS job. It’s just one that you use as a stepping stone to get a REAL job. Only a snowflake would expect to make a comfortable living nailing two pieces of wood together.
All those blue and pink collar jobs are just there so children of the professional class can take selfies of themselves “working” before they join the ranks of the non-working rich. The working poor need to get over themselves and get with the program. And if they can’t get out minimum wage jobs, then they at least need to have the manners to get a new one every twelve months. It makes the rest of us uncomfortable to see someone working so hard for so long at the same place for so little.

USA December 12, 2017 at 10:28 AM

Johnny, you’ve nailed it. A high school kid learning how to nail two boards together is perfectly fitting for a minimum wage job. If he wants to make a career out of it, he joins the union and continues to learn the trade. Burger flippers can also earn a living, by continuing college and learning how to manage the restaurant, then step into regional management of the chain, and so on. Great point, thank you!

Dawg December 12, 2017 at 10:40 AM

The employees demanding a higher wage fail to understand the economics you describe because they aren’t very bright and this is why they are working at minimum wage jobs. The Democrats do understand the economics but don’t care because they are only interested in getting more votes.

Max December 12, 2017 at 12:30 PM

There are more inputs to the burger than labor…

Anonsense December 12, 2017 at 8:54 AM

That’s good news. The best way to stimulate the economy is to put money back into the pockets of lower wage workers. These dollars are always spent and keep flowing throughout the economy. Corporate profits are at an all time high. Don’t believe the liars who claim this hurts the economy or causes inflation.

Rob December 12, 2017 at 9:46 AM

This will absolutely put many small businesses out of business over time. Please explain to me how that will be good for the economy.

Low-skill work = low wages. Want higher wages? Develop skills/education/training that justifies a higher wage.

Fred P. December 12, 2017 at 10:52 AM

Problem is the pay increase results in an increase in cost of goods sold (basic accounting). To maintain a rate of return expected by the owner requires either the price to the consumer goes up or other expenses go down (i.e., reducing the number of hours worked).

This has already been demonstrated by implementing technology;; reduced hours, adding automation/technology. Corporations expect a minimum rate of return to satisfy their shareholders.

Don’t just assume that those who disagree with you are “liars.” What is your expertise in owning/operating a for-profit business, whether or not shareholders are involved?

Same December 12, 2017 at 9:01 AM

This should go well with their new gas tax and car registration fee.
Hopefully there are no minimum wagers crossing toll bridges for their jobs otherwise that will hit them too. A rising tide eventually drowns anything anchored down.

T-Rex December 12, 2017 at 9:25 AM

So everyone who is paid over minimum wage is essentially getting a pay cut now since they won’t be gettting an increase to keep up with the minimum wage increase?

Dave H December 12, 2017 at 9:26 AM

People complaining that the cost of their big mac might go up due to raising the standard of living for entry-level employees is…very Claycord comment section. I’m lovin’ it.

Bobby Blue December 12, 2017 at 9:39 AM

And in a related story, the cost of a Big Mac will climb to $7.99 on January 1st, so that McDonald’s can afford to pay its employees the new minimum wage.

Justifiable anger December 12, 2017 at 9:48 AM

I’ve got a better idea.

Cut the wages of politicians, city managers and all upper echelon state and county workers, including pensions.

This will drive the cost of living DOWN. This will seem like a raise for everyone.

Yves harlowe December 12, 2017 at 9:52 AM

It isn’t just fast food workers affected by minimum wage increases. There are a lot of low-skill jobs in many industries accompanied by low pay. Minimum wage mandates distort markets. Are those low skill jobs really worth $15 and provide $15 value to the employer? Of course prices will go up to cover increased costs. Why does anyone think that won’t happen? It isn’t just the increased wage, but FICA paid by both employee and employer goes up. Smaller businesses will likely reduce hours and number of employees if they can’t raise prices enough to cover increased labor costs and taxes.

ClayDen December 12, 2017 at 9:53 AM

Abolish the minimum wage. Pay people based on their contribution to the organization. Don’t like what you are paid? Improve your skills and value to the organization and if they don’t pay you more, find a job where they will. It’s called free market capitalism.

CSS December 12, 2017 at 9:58 AM

If you want to earn more money, get more education and/or training to advance and earn your way. California socialism is not the answer.

Anon December 12, 2017 at 1:47 PM

A great idea, but, the cost of furthering education is cost prohibitive. College students are starting their lives in crippling debt already. $15.00 is a paltry sum for someone who has to pay for housing, survival expenses and student loans.
Unless you get a full ride scholarship, you’re SOL.
$15.00 is perfect for the high school kid wanting some spending money, put into savings, or pay for the newest iPhone. It is not a living wage and never will be.

Strad December 12, 2017 at 10:05 AM

Tie minimum wages to the cost of an Iphone price increase.

Same December 12, 2017 at 10:15 AM

Why stop at a modest $15? If you’re going to play fiscal god why not be more beneficent? If you think $30 an hour is too high but $15 is just right then you sound like a cruel fat republican trying to keep your big macs cheap.

Mr. Pink December 12, 2017 at 10:45 AM

I thought they’d already raised it? You know, I’m all for a living wage, but eventually a lot of these smaller business are just going to close shop because they can’t afford their payroll.

I’ll bet that a lot of single-owner business owners would say that, at the end of the day, THEY don’t even make $15/hr.

RANDOM TASK December 12, 2017 at 10:52 AM

@ITS ME …..YEAH RIGHT so many on here blah blah leave and yes to taxes and yes to illegal activity by cities and counties ….THIS STATE HAS BEEN DEM AND LIBERAL FOR 50 YEARS WITH NO ACCOUNTABLITY OR CHECKS AND BALANCES AND HERE WE ARE

NO MONEY FOR SCHOOLS OR STREETS OR INFRASTRUCTURE OR POLICE OR FIRE OR ANY BASICS OF A CITY OR COUNTY PROPERLY MANAGED

WHAT WE DO HAVE IS TAX MONEY BEING USED FOR ILLEGALS AND ILLEGAL ACTIVITY AND CORRUPTION AND BUMS LEGALLY PANHANDLING ON A BART TRAINS …CRIMINALS FREE TO STEAL …CITY COUNCILS RUNNING MAOYOR-E-GO-ROUNDS TO GIVE THEM FREE BENEFITS FOR LIFE …OH AND MORE CORRUPTION ….AS WELL AS DEGRADING SCHOOLS …EDUCATION…AND CITY PRIDE ….CONTURD IS FOCUSED ON BEING A SANCTUARY FUNDED BY TAX MONEY AND THATS ABOUT IT …..FUN HUH ….OH AND THE ENTITLED ARE GETTING A $15 DOLLAR MINIMUM WAGE WHILE THEY COLLECT UNEMPLOYMENT AND GOV AID ……

Max December 12, 2017 at 12:41 PM

And yet we are one of the most successful states in the union….

Fred P. December 12, 2017 at 10:54 AM

As others have noted, you’re also going to think about wage/pay compression….

Cowellian December 12, 2017 at 11:00 AM

The California legislature can pass all the stupid laws they want, but they cannot repeal the law of supply and demand. This will result in kobs being lost and the cost of living to increase.

Cowellian December 12, 2017 at 11:09 AM

^jobs lost

sigh

Drama Mama's on here December 12, 2017 at 1:14 PM

So you still believe in trickle down economics? Scary

Fred P. December 12, 2017 at 11:23 AM

I’m not surprised about the lack of knowledge being displayed here (and at the state level) about supply/demand and basic economics.

Increased costs WILL result in increased prices .

Prove me wrong ….

Max December 12, 2017 at 12:42 PM

Fine. There is some small truth to that but it certainly won’t be a 1 to 1 ratio. There will be a lot more money held by the lower classes who tend to spend all of their earnings and thus drive demand. It is called velocity of money.

Jeff December 12, 2017 at 10:25 PM

Price 10 years ago at Burger King for a lot of items was more then it is now. Explain that please?

old-school guy December 12, 2017 at 2:20 PM

I’m puzzled by that last paragraph. Who gets to say if the economy is good, and whose budget can allow it? Really subjective opinions.

Jonathan December 12, 2017 at 5:43 PM

If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.

“The study from Purdue University notes that it doesn’t take into account the costs of turnover or any savings gained from higher wages. In 2013, the turnover rate for franchises was 93 percent, and it can cost $4,700 per worker who leaves. A previous study found that for every 10 percent increase in the minimum wage, turnover drops by 2.2 percent, and a $15 wage would come with $5.2 billion in savings for the fast food industry.

That study also found that between the extra money from higher prices, savings from lower turnover, and greater overall economic growth, the fast food industry could easily cover the increased costs of having to pay a $15 minimum wage without reducing any jobs.”

Pac Islander December 12, 2017 at 6:15 PM

sadly, those of us on a fixed income just got screwed so the lazy can feel like they earn more money….

…Forced inflation you dimwits… if only your teachers taught math and economics in school, instead they are teaching the merits f socialism, communism and how conservatives are “literally Hitler”

Randy December 12, 2017 at 7:21 PM

yes wouldn’t it be nice if prices never went up forever.

Jeff December 12, 2017 at 10:32 PM

Lol. Wow no wonder your on a “fixed income”. What’s going to happen to these people is there hours will get cut and they’ll be made to work harder.

Original G December 12, 2017 at 7:52 PM

Ever notice this minimum wage thing always seems to show up before an election year? 18 to 29 year olds vote Democrat.
Progressive liberals are using employer compensation to buy themselves votes short term.

Sounds good to shallow thinkers. Seattle raised minimum wage back in 2015 and what happened up there? Check it out for yourself below.

‘Minimum wage fight may heat up after new study finds jobs and hours fell in Seattle’
http://www.latimes.com/business/la-fi-seattle-minimum-wage-20170626-story.html
‘Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 – UofW Study’
http://www.zerohedge.com/news/2017-06-26/shocking-study-finds-seattle-min-wage-hikes-has-cost-works-14mm-hours-year-6700-jobs?page=2
https://www.reuters.com/article/us-seattle-minimumwage/seattle-employers-cut-hours-after-latest-minimum-wage-rise-study-finds-idUSKBN19H2MV
https://www.seattletimes.com/opinion/lessons-from-a-wage-experiment/

Bill Gates on minimum wage.
https://www.youtube.com/watch?v=VHUXr4Xffa8

He uses the phrase “labor substitution”.
http://dailytimewaster.blogspot.com/2017/11/carrot-harvester.html
‘Robots that slice, grill, assemble and bag 400 burgers in one hour could soon take over restaurants everywhere.’
http://www.dailymail.co.uk/sciencetech/article-4602682/Robots-churn-400-burgers-hour-set-over.html

SFSean76 December 13, 2017 at 10:51 AM

Automation is on it’s way…rise of the robots

rocco December 13, 2017 at 12:26 PM

Honestly, it’s time to eliminate the minimum wage. Let the free market take over. The free market decides all else. Then , the true minimum wage will reveal itself.

rocco December 13, 2017 at 12:27 PM

With the automatic CPI index built into California’s minimum wage, the minimum wage will be $ 17.04 per hour in 2025 . This is unsustainable.

rocco December 13, 2017 at 12:29 PM

Only the government benefits when wages are mandated to increase.

cabbie December 15, 2017 at 12:07 AM

im going out to have a $6 burger before they go up to $8 on the first

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