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State of California Department of Industrial Relations Industrial Welfare Commission STATE OF CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS INDUSTRIAL WELFARE COMMISSION August 9, 2006 Wage Board Report: Minimum Wage Introduction: The 2006 Minimum Wage Board met as instructed, and thoroughly discussed the issues in the charge. Although no recommendation was forthcoming, the discussion shed significant light on the issues. Rather than try to recap and summarize the discussion, this report includes the entire transcript by reference, and I recommend its review by any interested party. August 4, 2006 Department of Health Services Auditorium, 1500 Capitol Avenue Sacramento, California On August 4, 2006, the 2006 Wage Board regarding minimum wage convened at the Department of Health Services Auditorium, 1500 Capitol Avenue, Sacramento, California. The following persons were in attendance: Chairperson: Paul Cohen Wage Board Members: Employee Representative Employer Representative Jovan G. Agee Julianne Broyles Barry Broad Acie Davis Angie Wei Kevin Dayton Chris Jones Lara Diaz Dunbar Josefa Mercado James O. Abrams Mark S. Schacht Heidi DeJong Barsuglia Lee Sandahl (alternate) Gary Monahan (alternate) Allan D. Clark (alternate) Thomas J. Martin (alternate) IWC Staff: Stephanie Leach Deanna Fong, Legal Counsel Meeting Reporter: Capitol Reporters Call to Order Chairperson Paul Cohen called the meeting to order at 10:15 a.m. 1 Roll Call Chairperson Cohen called the roll. Six employee representatives and two employee alternates were present, and six employer representatives and two employer alternates were present. Chairperson’s Remarks Chairperson Cohen welcomed the wage board and read the charge to be addressed by the 2006 Minimum Wage Board, which is summarized as follows: “1. The adequacy of the current minimum wage of $6.75 per hour and whether the state minimum wage should be increased. 2. If you determine that the minimum wage should be increased, you should make recommendations as to: (a) How much the minimum wage should increase; (b) The timing of such an increase (ie. will the increase occur at one time or be phased in over a period of time); and (c) Whether the minimum wage should be indexed. 3. If you determine that the minimum wage should be increased, you should make recommendations as to the adequacy of the amount which may be credited against the minimum wage for meals and lodging in Section 10 of IWC wage orders 1 through 15 and Section 9 of IWC wage order 16.” Opening Statements Chairperson Cohen invited representatives from both sides to make brief opening statements. Opening statements and all other discussions are set forth in the transcript attached to this report. Employee Representatives who gave opening statements: Angie Wei – California Labor Federation Barry Broad – California Teamsters Public Affairs Council Mr. Broad’s presentation included a prepared statement which was read into the record and distributed in hard copy to members of the wage board. A copy of the statement entitled “Statement of the Employee Representatives of the Minimum Wage Board” is attached to this report. Employer representatives who gave opening statements: Julianne Broyles – California Chamber of Commerce Jim Abrams – California Hotel and Lodging Association 2 Motions and Votes: The wage board discussed the items listed in the Findings and Charge from the IWC and a number of motions were made with the following resulting votes: Motion #1: The wage board finds that the current minimum wage is adequate and should not be increased. Mover of motion: Jim Abrams Seconded by: Lara Diaz Dunbar Vote: 6 – 6; motion failed. (See transcript, Page 81, Line 10) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams - Yes Heidi DeJong Barsuglia - Yes Motion #2: The minimum wage of $6.75 is not adequate and should be raised. Mover of motion: Jovan Agee Seconded by: Angie Wei Vote: 6 – 6; motion failed. (See transcript, Page 86, Line 11) Employee Representative Jovan G. Agee - Yes Barry Broad - Yes Angie Wei - Yes Chris Jones - Yes Josefa Mercado - Yes Mark S. Schacht - Yes Employer Representative Julianne Broyles – No Acie Davis - No Kevin Dayton - No Lara Diaz Dunbar - No James O. Abrams – No Heidi DeJong Barsuglia - No 3 Motion #3 (Open): The minimum wage should reflect the proper cost of living and the purchasing power increase needed for low wage workers. Mover of motion: Angie Wei Seconded by: Chris Jones Motion #3(a): Motion to call to question whether to close debate on Motion #3. Mover of motion: Julianne Broyles Seconded by: Jim Abrams Vote: 6 – 6; motion failed. (See transcript, Page 98, Line 17) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams - Yes Heidi DeJong Barsuglia - Yes Motion #3 (Vote): The minimum wage should reflect the proper cost of living and the purchasing power increase needed for low wage workers. Mover of motion: Angie Wei Seconded by: Chris Jones Vote: 6 – 6; motion failed. (See transcript, Page 140, Line 16) Employee Representative Jovan G. Agee - Yes Barry Broad - Yes Angie Wei - Yes Chris Jones - Yes Josefa Mercado - Yes Mark S. Schacht - Yes Employer Representative Julianne Broyles – No Acie Davis - No Kevin Dayton - No Lara Diaz Dunbar - No James O. Abrams – No Heidi DeJong Barsuglia - No 4 Motion #4: If the Industrial Welfare Commission chooses to raise the minimum wage, that the amount of meal and lodging credits that may be taken against the employer’s minimum wage obligation be increased proportionately. Mover of motion: Jim Abrams Seconded by: Julianne Broyles Vote: 6 – 6; motion failed. (See transcript, Page 146, Line 7) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams - Yes Heidi DeJong Barsuglia - Yes Motion #5: The Industrial Welfare Commission should update Minnie’s Budget. Mover of motion: Mark Schacht Seconded by: Chris Jones Vote: 6 – 6; motion failed. (See transcript, Page 154, Line 7) Employee Representative Jovan G. Agee - Yes Barry Broad - Yes Angie Wei - Yes Chris Jones - Yes Josefa Mercado - Yes Mark S. Schacht - Yes Employer Representative Julianne Broyles – No Acie Davis - No Kevin Dayton - No Lara Diaz Dunbar - No James O. Abrams – No Heidi DeJong Barsuglia - No 5 Motion #6: If the minimum wage is increased, the increase should be in 12-month increments. Mover of motion: Julianne Broyles Seconded by: Acie Davis Vote: 6 – 6; motion failed. (See transcript, Page 161, Line 22) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams - Yes Heidi DeJong Barsuglia - Yes Motion #7: The minimum wage should be raised to $9.78 per hour and indexed to the cost of living using the Urban Counties Index from the Department of Finance. Mover of motion: Angie Wei Seconded by: Barry Broad Vote: 6 – 6; motion failed. (See transcript, Page 194, Line 11) Employee Representative Jovan G. Agee - Yes Barry Broad - Yes Angie Wei - Yes Chris Jones - Yes Josefa Mercado - Yes Mark S. Schacht - Yes Employer Representative Julianne Broyles – No Acie Davis - No Kevin Dayton - No Lara Diaz Dunbar - No James O. Abrams – No Heidi DeJong Barsuglia - No 6 Motion #8: Motion to adjourn. Mover of motion: Jim Abrams Seconded by: Lara Diaz Dunbar Vote: 6 – 6; motion failed. (See transcript, Page 205, Line 8) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams - Yes Heidi DeJong Barsuglia - Yes Motion #9: If any federal legislation passes with regard to the tip credit, the wage board requires that the Industrial Welfare Commission do everything it can legally to oppose it. Mover of motion: Barry Broad Seconded by: Angie Wei No vote. Chair ruled motion out of order and outside the scope of the charge. Motion #10: Motion to adjourn. Mover of motion: Julianne Broyles Seconded by: Kevin Dayton Vote: 6 – 6; motion failed. (See transcript, Page 210, Line 4) Employee Representative Jovan G. Agee - No Barry Broad - No Angie Wei - No Chris Jones - No Josefa Mercado - No Mark S. Schacht - No Employer Representative Julianne Broyles - Yes Acie Davis - Yes Kevin Dayton - Yes Lara Diaz Dunbar - Yes James O. Abrams – Yes Heidi DeJong Barsuglia - Yes 7 Motion #11: The Industrial Welfare Commission should consider the cost of housing when they determine the adequacy of the minimum wage. Mover of motion: Jovan Agee Seconded by: Chris Jones Vote: 6 – 6; motion failed. (See transcript, Page 221, Line 6) Employee Representative Jovan G. Agee - Yes Barry Broad - Yes Angie Wei - Yes Chris Jones - Yes Josefa Mercado - Yes Mark S. Schacht - Yes Employer Representative Julianne Broyles – No Acie Davis - No Kevin Dayton - No Lara Diaz Dunbar - No James O. Abrams – No Heidi DeJong Barsuglia - No Motion #12: All twelve wage board members decline to adjourn and notify the Industrial Welfare Commission we have not been able to conclude our deliberations and want one additional day to meet, properly noticed. Mover of motion: Mark Schacht No vote. Chair ruled motion out of order. Motion #13: Motion to adjourn. Mover of motion: Angie Wei Seconded by: Julianne Broyles Vote: 9 – 3 in favor of Adjournment. (See transcript, Page 224, Line 7) Employee Representative Jovan G.
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