July 30, 2020
California Governor Newsom is foregoing an option to postpone the state’s minimum wage increase to $14 an hour next year for larger businesses. He says it is an effort to help hard hit lower-income workers despite the challenges faced by companies to survive amid the coronavirus crisis.
The Governor indicated that although current economic conditions authorize him to suspend the scheduled increase in the minimum wage for 2021, he will move the increase forward as reflected in the 2020 state budget. The minimum wage will increase on January 1, to $13.00 per hour for businesses with 25 or fewer employees, and to $14.00 per hour for businesses with more than 25 employees.
Governor Newsom says, “As we continue our efforts to slow the spread of COVID-19, we must also ensure that as our economy recovers, all Californians can benefit in its growth. Not allowing this increase to go forward will only make life harder for those Californians who have already borne a disproportionate share of the economic hardship caused by this pandemic. Many of them are on the front lines of the pandemic, providing child care, working in our hospitals and nursing facilities and making sure there’s food on grocery store shelves.”
For comments, questions or concerns, please contact Dennis Kaiser