California passes ‘job killer’ increase in minimum wage to $10

The California legislature approved an increase in the minimum wage from $8 to $10 an hour late last week. The hike will be phased in over the next three years adding $1 in 2014 and another in 2016, according to Raw Story.

Minimum wage pizza makerWhile the Economic Policy Institute estimates that the wage increase will affect more than 2.3 million California workers, groups like the California Chamber of Commerce opposed the bill, calling it a “job killer” that will drive up business costs “worse than any predicted rate of inflation increase.”

Gov. Jerry Brown called the bill, passed largely along partisan lines, an overdue measure that would help working-class families. He is expected to sign it, according to ABC News.

“It means that single moms will have a little extra to support their families,” Steve Smith, communications director of the California Labor Federation, said on the AFL-CIO website. “It means seniors who’ve been forced to re-enter the workforce will have a little more to help pay for prescription drugs. And it means that all low-wage workers have received validation that their work is worthy of dignity and respect.”

The California Restaurant Association called the measure a “blow to small businesses” saying it was a reaction to fast-food demonstrations that occurred across the country last month.

“Brown suddenly became aggressively interested in addressing minimum wage with labor unions in an attempt to avoid their threat of putting the issue on the ballot in 2014,” the association said on its website.

“This is a classic example with how out-of-touch state leaders are,” said state Sen. Jim Nielsen, R-Gerber. Republican lawmakers opposed the bill, saying it would hurt business and cut jobs.

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Cheryl Carpenter Klimek

Cheryl Carpenter Klimek has been a political consultant handling public affairs and PAC management for nearly 20 years. Cheryl can be reached by email at Cheryl@bizpacreview.com & on Twitter @CherylBPR
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About Cheryl Carpenter Klimek

Cheryl Carpenter Klimek has been a political consultant handling public affairs and PAC management for nearly 20 years. Cheryl can be reached by email at Cheryl@bizpacreview.com & on Twitter @CherylBPR

  • seazen

    “This is a classic example with how out-of-touch state leaders are,”. Only some of them. The majority are, in fact, in touch with the actual human beings they represent who might actually be able to scratch by a little better in an economy dedicated to serving the wealthy on the backs of the rest of us. Small businesses actually need more customers with a little bit of discretionary money or they really will go out of business. Now, if McDonalds and Wal-Mart and the rest of the suffering mega-businesses would all pay their workers a decent wage and maybe forgo a tiny bit of profit that only rewards the investor class we might have the beginnings of a stronger society and economy overall.

    • bidvajoo

      With an increase in minimum wage comes an increase in operating expenses. To cover the expense increases, business owners will raise their prices. Will you pay $10 for a Big Mac? I wont, and I’m sure most people wont. So what happens next? Sales decrease due to the price increase. Revenue drops so the business owner has to cut costs. Payroll is the number one expense for most business so guess what happens?????? Employee hours are reduced or eliminated altogether. How’s that increase in minimum wage so now?

      Contrary to most liberal theories…Businesses do not exist to provide jobs. The exist to turn a profit. Jobs are a by-product of successful business(to fill the demand for a product or service)

      How about this…instead of forcing business to pay an increased minimum wage, how about we keep the minimum wage where it is and encourage workers to take a bit of responsibility for their place in life or the path they’ve chosen.. If they want a higher paying job, perhaps they should go out and attain the education or skills to EARN more money.

      • seazen

        That’s right. End the conclusion by slandering anyone who works at McDonalds in todays booming economy. Beyond that, a rise in the minimum wage is something that affects those in the market that have the least discretionary income. It will get spent – at McDonalds or somewhere else. And it does not automatically increase the cost of their product unless the rest of their business model is perfect and there is no place to save money through other improvements.

        The notion that the effort/contribution of people to the success of a company is secondary to “profit” of the owners is an argument of the aristocracy. No business would survive without the effort of its employees. No business will survive if the total workforce is broke – unless they survive because they serve those with the least money.

        Since 1980 about 90% of all the new wealth created in this country has flowed to 10% of the people. In real dollars minimum wage has declined and the middle class has nearly disappeared. Corporate profits are an all time high.

        If you revere a society where it is only those with massive amounts of wealth that should benefit from the work we all put in, fine. Say so. I’d prefer a society where there is a far better balance and a real acknowledgement that economic justice matters.

        • bidvajoo

          I’m not slandering anyone who works anywhere. All work is noble. My issue is…Employment is voluntary. No one is forcing them to work at McDonalds. They know how much McD’s pays when they accept the job. If the pay is too low, they can refuse the job offer. However, if they are in a position where McD’s is the only job they are qualified to perform, McD’s is not responsible for the life choices the potential employee has made. If the employee feels they are worth more money, then perhaps they should put in a little effort to improving themselves(education or vocational skills).

          These “unskilled” jobs, in theory, should be “stepping stones” for individuals, not careers. Who honestly expects to make a career out of flipping burgers, or stacking bricks as a masonry laborer(I’ve done both by the way)? Neither job required any real skill and I was paid appropriately, minimum wage. I made the decision to better myself and gain some marketable skills to improve my financial situation. It took several years and hard work, but it happened.

          Please explain why “Big Business” is to blame for individuals choosing to remain uneducated, or dare I say lazy?

          Aristocracy? Me? Really? LMFAO!!!! I’m the furthest thing from it, but I understand how business work in the real world, not some liberal Utopian college economic theory.

          Again, businesses do not exist to provide employment, they exist to earn a profit by providing a product or service to consumers. Why is that concept so hard for the liberal mind to grasp?

          America is the land of the free. If you dont like your job, or dont feel you are paid enough, wyou are FREE to go find another job. That is unless you dont have any marketable skills. And who’s fault it that?

          Aristocracy…HAHAHAHAHAHAHA

          Good luck Cali. You’re gonna need it with liberals like this clown running your state

          • Luella Roma

            I’m sure McDonalds can spare a little change for their employees. Do you even realize how expensive it is to live in California? On a good day, a studio is $800/month and a 1 bedroom on average is $1100/month. If you have a family, there is no way one person can support even one child on minimum wage. It’s heinous. Do your math. If you worked at $8/hr for 160 hours a month, you would barely even make one months rent. Then take in to account the taxes that get deducted from a minimum wage check and also: food, gas, utilities, cell phone, car insurance, car maintenance, clothes, child care, health bill/insurance, etc. Yes try paying for all that in California with a minimum wage job at ~$1,000 a month and see how long you last. A person gets sick and misses work for 3 days and they can’t even make rent. Families making minimum wage already have to apply for extra help through the state and that comes from taxpayers money. Businesses can afford some extra change. Take example Apple who is just sitting on billions of dollars of cash. Come on man. Have a heart for the majority of citizens in America. Why aren’t people pushing big businesses like Apple to create more jobs for people? When economics start becoming more important than the overall well being of the citizens and people care more about billion dollar companies saving $10 million dollars a year more than the welfare of their neighbor, it’s apparent to see who the one is out of touch with humanity. If people have more disposable income then naturally more money will be spent to help small businesses thrive. The standard success rate for small businesses is 5% anyway regardless of minimum wage. It may just take a little bit more innovation for small businesses to succeed but just because they pay their employees a little bit more money, I really freakin doubt that is the end of the world.

          • bidvajoo

            Do you realize that the MCD corporation does not own individual franchises? Virtually every MCD out there is a small business? Its not the MCD corporation that has to cover the cost, its the small business owner.

            If the cost of living is so high, then get an education or learn a trade to make yourself more marketable. You know how much the job pays before you accept it. Right? If 8.50 isn’t enough to cover your bills then get a higher paying job.

            What’s that??? You don’t have any skills that would enable you to earn higher pay? Who’s fault is that?…the business owner’s or yours?

      • LaVonda

        McDonala’s had the nerve to put out a budget to their employees on how to save money and one of the things on the list was getting a second job! McDonald’s would only have to increase the price of each menu item by 10 cents to ensure they were paying each employee at least 10.00 per hour. How can anyone live off of minimum wage, especially if you have children to take care of! I don’t know anyone who can afford to live on their own with a gross salary of $1,120.00 per month. I live in California and that in many places would be your entire salary. What about food, utilities and transportation or child care? You know all the other things you need in order to live decently in this society.

        For the record businesses could not be in business without their employees! They would have no profits, because I would not want to go to McDonalds and be served by a robot. In business you should care about your employees, because we all human beings with the same needs and desires. To live humanly and to be able raise children that contribute to society in a positive manner. People with your attitude obviously have never had to live off minimum wage so its easy to come up with solutions that are at best short sited and only put people down who don’t see life from your perspective. As far as education is concern I am currently in school because I needed to be retrained, because of a health issue. I would not have been able to attend school without financial aid and many people in this country will not qualify for assistance if you have any type of drug conviction or if you were kicked out of public housing. You statement acts as if everyone has the same opportunities or finances to get the skills you think they need to earn more money. People need to learn to care about their fellow human beings and stop judging and demeaning others, because they live at income level you were lucky enough to not have to live at, but everyone does not have that choice, if they did there would be no ghettos, barrows, or poor people that required government assistance like food stamps. We all subsidy the wages of the people that don’t make enough to survive, so yes I want the Corporations to pay more because when you are making BILLIONS OF DOLLARS EVERY YEAR YOU CAN AFFORD TO PAY A LIVING WAGE YOU JUST DON’T BECAUSE MONEY IS MORE IMPORTANT THAN HUMAN BEINGS!

        • bidvajoo

          Typical entitlement mentality… I have no marketable skills but I want more money. Well then do something about your lack of skills.

          We’re talking about jobs that anyone can do. Entry level jobs that should be used as a stepping stone. If a person chooses to make a career out of flipping burgers or digging ditches, so be it. That’s your choice. You know the pay rate before you start. If its not enough money, go find a better job.

          And another thing…regardless of what job or career you choose, you are 100% replaceable. Companies can and do survive without their employees. The just hire new ones that are willing to do the work for the pay that’s offered, sometimes less. There’s always someone looking for a job. That’s how the real world works.

          And if Cali is too expensive, move to another state.

          I’m done going back and forth with you on this. Its called capitalism. If you don’t like it, move to a socialist or communist country. I hear the Russians and Cuban love their economies.

  • Kenneth Clark

    Do a Colorado recall on em

  • matt

    $150 an hour or bust! Obama said I deserve more!

  • cromagnan

    Opinions are like as?!$&/(…s

  • BrothaDave

    Minimum wage goes up, prices and costs go up. It’s good in a way because two working adults could actually live a decent life in certain areas of California with minimum wage jobs, although not LA or the Bay Area.

    If things don’t get too out of hand people might be more inclined to go to work, or be able to find work, instead of being on assistance for long periods of time. It might cut jobs and raise costs at first but it’s a slow incremental wage increase like always.

    With the Affordable Healthcare Act and now this give it a few years and maybe just maybe things will get better. Cheaper insurance and slightly increased wages may just do more for the state than people see now. Higher wage jobs already get their annual raises so this only affects minimum wage jobs.

    $1.75 an hour raise per employee over 3 years is manageable, they’ve been doing it since minimum wage was raised to $4.25 when I first started working in the 90s, it’s gone up $4 over the past 15 years or so and nothing collapsed, everyone should relax who is against this and look at the big picture.

    • bidvajoo

      I’m sorry but “cheaper insurance?” Really? Then why are premiums increasing national wide?

      That one statement completely discredits your argument.

      Your assumptions are good when based on theory. But that’s not how the real world works. Increased costs are not a good thing. Increased costs result decreasing sales shock cut into the bottom line. That means cost cutting. Easiest way to cut cost is decrease payroll. How does that help the economy?

      • BrothaDave

        The affordable healthcare act has not been fully implemented but many people will be able to obtain insurance at much cheaper rates (although coverage will vary). Even that is up in the air you are right but if things go the way they are supposed to insurance will be cheaper and easier to obtain for a large amount of people.

        As far as my other comment goes minimum wage has been increasing steadily since the early 80s and 90s and it has it’s effects on businesses and jobs but as long as the population continues to increase most of those jobs that could potentially be lost will be filled again. Service jobs, sales, etc they all keep growing because of how people live their lives. My opinion is it won’t have as much of an affect as many others think but I don’t know it all, these are both just my opinions based on what I’ve seen in the past 20 years.

        • bidvajoo

          Honestly, i dont care what the liberal nut-jobs do in Cali. They can run the state into the ground for all I care.

          As far as the ACA goes…you are correct, it’s not fully implemented. Ad large corporation are already beginning to cut hour and benefits as a result. Have you seen the cost of the plans available through the exchanges? They cost more than employer sponsored plans. The subsidies offered as tax breaks or refunds dont cover the difference. The result is a higher out of pocket cost for the insured. Paying more money out of pocket doesn’t sound like cheaper insurance to me.

          Not to mention the cost projections were/are based on paying for 6 years of the program over the course of 10 years. What happens after that 10 years and we begin having to cover the full cost yearly? There’s not enough money, the program collapses, and we’re forced into a single payer program.

          • BrothaDave

            Can’t and won’t argue with you on that, I’m not a fan of the ACA but I guess it is what it is. I realize some people will pay more but not everybody, some people who can’t afford or obtain insurance now will be able to afford it. It’s all a mess to be honest my main point was about the wages, you are right about the potential problems with the ACA.

  • Ajean72

    This is such garbage! Are these politicians actually losing their brains? If they were to free up the amount of income tax money taken from peoples’ paychecks, there would be no need for an increase in minimum wage!

  • sikntyrd

    AFL-CIO… dumb!!!! They lost a lot of membership dues because of Democrat bills and regulations, so now they will make up for it by raising minimum wage. This is also nothing short of getting more tax revenues from companies and individuals. Just because Congress will not increase the debt limit. Folks!!! Our politicians have gone HUNGRY and GREEDY for more money so they do not lose their increases in wage and benefits. Unbelievable!!!

  • Marc Antonio Leon

    People can talk about The minimum wage of Australia or corporate profits, or how there is a correlation to discretionary money all day long, but in this state, entry level jobs are disappearing. I did a search on Indeed in my area. “Entry level” Office Clerk $11.00 per hour(one of the few that post their wage)

    Education and Experience

    • At a minimum, high school diploma
    • 2 years’ experience in office environment

    Temporary Customer Service Representative:

    Position Requirements:

    Education: Prefer completion of high school or equivalent. Ability to follow directives and interpret retail operational documents as assigned.

    Experience: Prefer some experience working with people and general public; Work in retail, hotel, restaurant, grocery or drug store environment is preferred.

    Warehouse Clerk:

    EDUCATION and/or EXPERIENCE
    High school diploma or GED and one year related experience. Must be highly proficient in MS Office specifically Word and Excel. Must have the ability to multi-task and have excellent communication skills.

    If we raise the minimum wage to $10.00 per hour you are going to have to have previous fast food experience just to get an entry level job at McDonald’s or Taco Bell. There has to be jobs that virtually anyone can get, jobs someone can work to obtain the necessary skills to obtain gainful employment.

    How are people who do not have $10.00 worth of hourly skill ever going to get a job? I have a college degree, management experience and I was laid off almost a year ago. Today I applied for a Courtesy Clerk position at a grocery store. The job pays $8.37 per hour. I worked at a grocery store for five years while obtaining my bachelor’s degree. I was number 200 in line and there must have been 50 people behind me. I really want this job because I have to go back to school and obtain more skills to get a better paying one and I can work around my class schedule if I work at a grocery store. I will also be able to substitute teach if I work nights.

    I have also applied for server positions, but I have no experience. Most restaurants want a year or two of server experience. The more we raise the minimum wage, the less entry level jobs we will have. At what point do we completely price an unskilled workforce out of the labor market? My favorite contemporary economist, Steven Levitt says that raising the minimum wage is not that big of a deal because very few people work at the minimum wage. I vehemently disagree with him because if there is a hidden side to everything…the hidden side of the minimum wage is unemployment and millions of people who have been priced out of the job market.

  • Luella Roma

    ““This is a classic example with how out-of-touch state leaders
    are,” said state Sen. Jim Nielsen, R-Gerber. Republican lawmakers
    opposed the bill, saying it would hurt business and cut jobs.” F*ck this guy. Can we cut this guys salary to minimum wage and throw him and his family in downtown Los Angeles and see how long he lasts?