Bill Text: CA AB10 | 2011-2012 | Regular Session | Amended

---

Bill Title: Minimum wage: annual adjustment.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB10 Detail]

Download: California-2011-AB10-Amended.html

---

BILL NUMBER: AB 10	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Assembly Member Alejo
    (   Coauthor:   Assembly Member  
Allen   ) 

                        DECEMBER 6, 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.
State-mandated 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 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   Except   as provided in
paragraph (3),   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  .