California Gov. Jerry Brown on Monday signed a bill to give entry-level workers some financial help by increasing minimum wage gradually over the next few years.
The bill also makes the Golden State the nation’s highest statewide minimum wage of $15 an hour by 2023. The federal minimum wage stands at $7.25 per hour.
On Jan. 1 California saw its minimum wage increase from $9 to $10 an hour. The new law will give entry-level workers another increase next Jan. 1 to $10.50, with a dollar added each year after that until 2022.
Brown signed the bill with the backing of both the state Assembly, with a 48-26 vote, and the state Senate, 26-12.
“I think it’s going to be a net positive in California,” said Assemblywoman Lorena Gonzalez, who represents the 80th Assembly District which includes National City, Barrio Logan and a portion of Chula Vista.
“If you look at a district like where we live and serve there are a lot of workers right now who are making less than $15 an hour and really can’t make ends meet, so to be able to get them just a little bit more cash to be able to ensure that they have food on the table, that they don’t have to rely on social services and public handouts, that they are able to pay the rent and provide additional spending (to the economy) is a positive.”
Gonzalez said the wage increase also offers protections in case of another economic downturn. She said the minimum wage increases will be suspended for a year if there are three months of job losses and, if the governor feels that the budget cannot be balanced with the wage increase, he has two opportunities to suspend it.
She also said the increases are gradual so it gives small businesses the opportunity to absorb the change to their employees’ salaries.
However, Gonzalez said there’s a different class of workers who will not be covered.
“I want the people to remember that this does not touch the millions of people in California who work as independent contractors,” she said. “We still have to look at workers who are not paid hourly, who do not even make a minimum wage.”
Cindy Gompper Graves, president of the South County Economic Development Council, said she could not comment on the implications the minimum wage increase will have for South County businesses because its members have not taken a position on the issue, nor will they take a position on it because it’s state mandated.
Restaurant owner Adam Sparks is against the increase because it makes it harder for a small business to survive.
“For a restaurateur it’s devastating,” he said. “Because it is not just the minimum wage, all the products I use here are going to go up (in cost). Not only do the hourly wages go up but so do my taxes that I pay out on payroll.”
Sparks said the recent wage increase to $10 an hour has also affected his business as he had to cut hours for some of his employees. Sparks also said the increase in minimum wage on top of the new paid sick leave law make it difficult to successfully own and operate a business.
Glenn Loader, who owns Glenn’s Body Shop in National City, said the minimum wage increase will not affect his business because his workers are not entry level employees.
He said his employees are skilled employees and make more than minimum wage.
“I don’t pay my guys minimum wage to work on a $40,000 car,” he said. “They developed necessary skills to do the job they do.”
Loader did say he felt bad for business owners who will have to pay their employees $15 an hour to do entry-level work.
Ivan Arabo, store manager at Wrigley’s Supermarket in National City, said January’s increase resulted in increasing cost of products at the store.
Arabo’s family has owned Wrigley’s since 1979 and he fears his employees may be affected.
“We don’t know if we will have to cut employees, we will have to assess that,” he said. “But I do know the business owners will spend more time at the store doing a lot of work themselves.”
National City Mayor Ron Morrison said he does not support a wage increase on a city level if the neighboring cities didn’t increase their wages as well.
However, a statewide increase he fully supports.
Morrison said while many National City residents will benefit from the minimum wage increase, there are other residents he is concerned about.
“A lot of people here (in National City) also are seniors which keeps the (income) level down low because they are on Social Security and things along that line,” he said. “The other question you are going to have is the stuff like Social Security. How is it going to be fair with someone working at McDonald’s who is going to be making more than a person who has worked their whole life and is on Social Security?”
Morrison said ultimately the path to higher wages is a college education or developing a skilled trade.
Chula Vista Councilwoman Pat Aguilar said raising the minimum wage statewide to $15 an hour “is the right thing to do.”
Aguilar said she is not worried that a higher minimum wage will lead to the loss of jobs because she said she has seen studies where the minimum wage has been raised and businesses are able to adapt and keep their workers.
She also said she is open to the idea of having Chula Vistans making $15 an hour sooner than 2023.
“I’m open to considering that but what I would need to see is what affect it would have on Chula Vista businesses like a restaurant that now has to pay more to their employees, would that make them move to another city where the wages weren’t so high?”
