California could follow the lead of Los Angeles and San Francisco with a statewide minimum wage hike that would replace the patchwork approach to higher wages that’s evolved as municipalities adopted their own proposals.
Negotiations between state lawmakers and union officials appear to have successfully led to an initiative that would raise minimum wage statewide to $15 an hour by 2022, which would even the playing field for companies throughout California. As it stands now, there are cities such as Los Angeles, Pasadena and Santa Monica that have passed laws to raise the minimum wage and others are mulling it, creating a mixed bag of policies throughout the state.
Los Angeles last year adopted a plan that will eventually see the minimum wage in the city raised to $15 by 2020, which led to cries from some companies in the apparel manufacturing and retail sectors that it would lead to a mass exodus out of the city to nearby areas. Critics of the plan argued the increase would not just impact wages for entry-level positions but create a domino effect of increased costs that would ricochet within a company. The move in the city was then followed by a similar plan at the county level, that again drew the ire of some business owners, and once again led to cries that companies would depart for unincorporated parts of L.A. County unaffected by the measure or would move out of the county completely.
According to reports, the deal, which was said to have been fleshed out during the weekend, could be approved as early as this week.