Lawmakers and labor unions in California are preparing to announce a deal that would raise the minimum wage to $15 per hour statewide by 2022, according to the Washington Post. The current minimum wage is $10 per hour.
The move would create the largest statewide minimum wage in the nation, U.S. News and World Report stated. If the agreement is finalized and approved by the Legislature it would avoid taking the issue to the ballot, the source reports.
The Los Angeles Times reported that the minimum wage would rise to $10.50 in 2017, $11 per hour in 2018, and increase $1 per year to reach $15 per hour by 2022. Businesses with fewer than 25 employees would have one extra year to comply.
Jeff Leider, president of California-based Tri-R Coffee & Vending told VendingMarketWatch.com that he is concerned that companies may leave California due to the difficulty of operating a business and that the minimum wage increase adds to his concern. “At $15 an hour for an entry level employee how much more can they afford to pay management if they are forced to pay $15 as a base?” Leider asked. “Gas is almost back at $3 and I won't be surprised if we are $4 toward the end of summer.”
As for the direct affect in the vending business, Leider noted, “If we pay the pre-kitter $15 what do we have to pay the driver or the route supervisor? The good thing is that it gradually goes up, $.50 cents for the next two years and then $1 a year for the next 4 years after that to get to $15 by 2022.”
