State Assembly Ends Session Without Progress On Wage Bill
Last week was the end of the legislative session for California’s state lawmakers. On the agenda for the session was SB3, a measure designed to boost the state minimum wage to $11 per hour in 2016 and $13 per hour in 2017. The Sacramento (CA) Bee reported that on Thursday the measure became stalled “in a key financial committee,” effectively killing it for the year. Sponsor Sen. Mark Leno (D-San Francisco) had put forth “last-minute amendments” that would have delayed the wage increases until 2017 and 2018, but to no avail. The measure passed the Senate in June, but was faced with heavy criticism from business groups like the California Chamber of Commerce over concerns about the negative effects it could have on the state’s economy.
What Happens Next
With Leno’s measure stalled in the Assembly, the issue is dead for this legislative session. The Los Angeles Times noted that the measure would have increased the minimum wage to $11 in 2016 and $13 in 2017. Despite the bill’s failure to pass in the Assembly, Assemblyman Jimmy Gomez (D-Los Angeles), chair of the Appropriations Committee, said boosting the minimum wage will be on the agenda for 2016, and promised his panel will work on the issue. In a statement he said, “Raising the minimum wage is a crucial next step for California to lift working families out of poverty, and we look forward to working with our legislative colleagues and the Governor to make that happen.” For now, however, the measure signed into law by Gov. Jerry Brown two years ago that increases the minimum wage to $10 per hour in January will remain in effect.
What This Means For Small Businesses
California’s small business owners have faced a barrage of attacks on wages this year, with Los Angeles and San Francisco in particular becoming less-friendly places to run businesses due to local minimum wage measures that go above and beyond increasingly burdensome state regulations. Stalling of Leno’s bill in the Assembly is good news in the short term for the state’s small business owners, because it means the minimum wage won’t increase any further in 2016. However, the issue has gained a foothold with the public and state lawmakers and is unlikely to go away anytime soon.
Additional Reading
NFIB previously covered the passage of SB3 in the California Senate.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
