California minimum wage hits $14 in 2021
(The Center Square) – The hourly minimum wage in California rose to $14 on Jan. 1, and will climb to $15 in 2023.
Firms with 25 workers or less have an extra year to raise the minimum wage to $15. Upon the minimum wage reaching $15 for all hourly employees, there will be annual adjustments for cost of living increases.
In the midst of a severe economic and public health crisis, what do business groups think of this minimum wage hike trend?
“The cost to operate a small business in California increases every day,” Amanda Blackwood, president and CEO of the Sacramento Metropolitan Chamber of Commerce, told The Center Square in an email, “and that has only escalated because of the pandemic. Our workforce needs a workable wage, but a statewide mandate is not the only answer.”
Former California Gov. Jerry Brown, Jr. approved the gradual phase-in of the state minimum wage to $15 an hour in 2016. California is one of 24 states to hike the minimum wage effective Jan. 1.
According to U.S. News & World Report, California’s $14 hour wage for large employers is the highest minimum wage across the U.S. in 2021. California has a high cost of living, notably especially for housing in coastal communities. That housing inflation affects renting and purchasing real estate in the Golden State.
“Our local and state leaders must find real-time solutions and opportunities to reduce the cost of doing business in California,”Blackwood said. “Our employers can reinvest those funds into our workforce, especially at this time when jobs are vital to our economic recovery and our most vulnerable households.”
Holly Sklar, CEO of Business for a Fair Minimum Wage, takes a different view than Blackwood.
“California’s economy will get a shot in the arm with minimum wage increases to start the New Year,” Sklar said in an email. “Raising the minimum wage puts money in the hands of people who most need to spend it – from paying rent to buying food, medicine, school supplies, car repairs and more. Minimum wage increases will go right back into local economies across California, helping workers and businesses get through the pandemic and economic crisis.”
The California Chamber of Commerce and California Restaurant Association declined requests for comment.
Currently, no state has a $15 minimum wage now. However, California, New York, and Massachusetts plan to raise it incrementally to $15 per hour.
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