In President Barack Obama’s 2013 State of the Union address, he called on Congress to raise the Federal Minimum Wage to $9.00 per hour. Currently, California’s Minimum Wage is $8.00 per hour with a few exceptions. If this new Federal law is passed, all California employees will be entitled to earn the new national Minimum Wage of $9.00 per hour, representing an increase of 12.5%.
While it is unlikely that any minimum wage increase would be passed through a divided Congress, the President’s comments may prompt California’s Legislature, controlled by a Democratic super-majority, to seek a similar increase. Currently, California has the lowest minimum wage of any state on the West Coast (though the City of San Francisco has a minimum wage of $10.24/hour). Late last year, a bill was introduced in the Assembly which would raise the minimum wage to $9.25 per hour by January 1, 2016, but it has not been passed. We will keep you posted on any developments at the state and federal level.