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Tuesday, May 24, 2022

California minimum wage projected to rise to $15.50 under inflation trigger

The governor’s office estimated Thursday the California minimum wage at $15.50 an hour for workers of all occupations large and small, under an automatic inflation trigger built into state law on January 1, 2023 and never activated before. Will be done.

The announcement came a day before Governor Gavin Newsom, a first-time Democrat, was slated to present his revised budget plan to his party-controlled state legislature, including a proposed $11.8 billion inflation-relief spending package. was also involved.

An economic stimulus proposal implemented last year to help California recover from the COVID-19 pandemic includes a plan Newsom previewed in recent weeks to help vehicle owners offset rising gasoline costs. Offers a $400 tax exemption.

Newsom said his package taps into a “historic” state budget surplus to help individuals and families cope with the rising cost of living, which the state Department of Finance projects for fiscal year 2021 and fiscal year 2022. The middle will increase by 7.6%.

Even if Newsom’s package becomes law, the Treasury Department estimates that about 3 million workers are expected to benefit from the first inflation-based minimum wage increase under the labor law enacted in 2016.

That law requires an automatic 50-per-hour increase from California’s current minimum wage levels — already the most of any state requirement for large companies — whenever the U.S. Consumer Price Index is set for the year. -Grows more than 7% year-on-year.

That means the statewide minimum wage for companies employing 26 or more workers, and those with 25 or fewer workers, will both rise to $15.50 in the new year. Without the inflation trigger, the minimum wage for smaller firms topped $15 in January, which is now catching up to the level required for larger firms.

Only two states — Massachusetts and Washington state — exceed California’s current $14 minimum wage for small companies. Data from the U.S. Department of Labor shows that businesses of all sizes require them to earn at least $14.25 and $14.49 per hour, respectively.

The District of Columbia is still high, $15.20 per hour. The US federal minimum hourly wage is currently set at $7.25.

Other highlights of Newsom’s inflation package include $2.7 billion in emergency rental assistance for low-income tenants and $1.4 billion to help utility customers pay overdue bills.

The California Republican Party issued a statement urging the legislature to suspend state gasoline taxes as “the most effective way to relieve the pain at the pump.”

This article is republished from – Voa News – Read the – original article.

World Nation News Deskhttps://www.worldnationnews.com
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