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AB-10 Minimum wage: annual adjustment.(2011-2012)

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Corrected  March 15, 2011
Amended  IN  Assembly  March 14, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 10


Introduced  by  Assembly Member Alejo
(Coauthor(s): Assembly Member Allen)

December 06, 2010


An act to amend Section 1182.12 of the Labor Code, relating to wages.


LEGISLATIVE COUNSEL'S DIGEST


AB 10, as amended, Alejo. Minimum wage: annual adjustment.
Existing law requires that, on and after January 1, 2008, the minimum wage for all industries be not less than $8.00 per hour.
This bill would increase the minimum wage, as of January 1, 2012, to not less than $8.50 per hour.
This bill would provide for an adjustment to the hourly minimum wage on January 1, 2013, and annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission from adjusting the minimum wage downward and from adjusting the minimum wage upward if the average percentage of inflation for the previous year was negative. The bill would require the Industrial Welfare Commission to publicize the automatically adjusted minimum wage.
This bill would prohibit provide that its provisions from being not be construed either to preclude an increase in the minimum wage greater than the formula would provide or to result in a reduction in the minimum wage.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1182.12 of the Labor Code is amended to read:

1182.12.
 (a) Notwithstanding any other provision of this part, on and after January 1, 2012, the minimum wage for all industries shall be not less than eight dollars and fifty cents ($8.50) per hour.
(b) (1) The Except as provided in paragraph (3), the minimum wage shall be automatically adjusted on January 1 of each year, commencing on January 1, 2013, to maintain employee purchasing power diminished by the rate of inflation that occurred during the previous year.
(2) The minimum wage adjustment shall be made by multiplying the minimum wage in effect on December 31 of the previous year by the percentage of inflation that occurred during that year, and by adding the product to the wage in effect during that year. The resulting total shall be rounded off to the nearest five cents ($0.05). The Industrial Welfare Commission shall publicize the automatically adjusted minimum wage.
(3) The Industrial Welfare Commission shall not adjust the minimum wage pursuant to this subdivision if the average percentage of inflation for the previous year was negative.

(3)For purposes of this calculation

(4) For purposes of this subdivision, the following terms have the following meanings:
(A) “Percentage of inflation” means the percentage of inflation specified in the California Consumer Price Index for All Urban Consumers, as published by the Department of Industrial Relations, Division of Labor Statistics and Research, or its successor index.
(B) “Previous year” means the 12-month period that ends on August 31 of the calendar year prior to the adjustment.
(c) The Industrial Welfare Commission shall not reduce the minimum wage prescribed by this section.

(c)

(d) This section shall not be construed either to preclude an increase of the minimum wage by the Industrial Welfare Commission in an amount that is greater than the rate calculated pursuant to subdivision (b) or to result in a reduction in the minimum wage.

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