Raising the California Minimum Wage to $13.00 an Hour Will Force Big Changes in Many Businesses –Image Courtesy: 960 The Patriot@Twitter (Asian Journal) On Thursday, the California State Senate voted 21-12 to raise the state’s minimum wage to at least $13.00 an hour by 2017 sending it to the Assembly.
Presently, California’s minimum wage stands at $8.00 an hour, pursuant to the Senate bill should it become law according to NBC Los Angeles the state’s minimum wage would rise to $11.00 an hour by 2015, $12.00 by 2016 and $13.00 in 2017–Tipped workers would also make $13.00 an hour.
In June 2012 CATO Institute published an article worth noting: The Negative Effects of Minimum Wage Laws pointing out the business reality that lawmakers choose to ignore:
“There is no ‘free lunch’ when the government mandates a minimum wage. If the government requires that certain workers be paid higher wages, then businesses make adjustments to pay for the added costs, such as reducing hiring, cutting employee work hours, reducing benefits and charging higher prices.
Some policymakers may believe that companies simply absorbs the costs of minimum wage increases through reduced profits but that is rarely the case. Instead, businesses rationally respond to such mandates by cutting employment and making other decisions to maintain their net earnings. These behavioral responses usually offset the positive labor market results that policymakers are hoping for.”
According to California Democrat State Senator Mark Leno’s bill SB 935 after 2017 the state minimum wage would be adjusted annually to keep pace with inflation, no matter what market forces (prices of goods and services, costs of transportation/delivery, recession, business closings, etc) otherwise dictates–the end result…
McDonald’s & Other Fast Food Workers Meet Your Replacement
Image: Krispy Momma@Twitter
Related: California is Worst State for Business in 2014 –Chief Exec.net
California Nations #1, #2, #3, #5 and #9 Highest State Income Tax Rates
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