AB 10 would raise the state’s minimum wage from $8 to $8.25 in 2014 with additional increases to $8.75 in 2015 and $9.25 in 2016.
In 2017, the wage would be indexed to inflation and would automatically increase on an annual basis. Indexing puts the minimum wage on auto-pilot and ties the minimum wage to a single economic factor, inflation, and ignores other factors such as the strength of the job market, cost of doing business and the unemployment rate.
“Indexing will inevitably result in minimum wage increases at times when the economy is ill-suited to absorb new outlays and many restaurants would be doomed to buckle under the cost pressures,” California Restaurant Association (CRA) President + CEO Jot Condie said.
AB 10 is the fourth minimum wage bill introduced in the legislature in the last three years.