SB 3 (Leno) Joint Author: Senator Leyva Principal Co-Author: Senator De León Co-Authors: Senators McGuire & Hancock; Assemblymembers Gonzalez, McCarty, Stone & Ting As Introduced December 1, 2014

Minimum Wage Fairness Act

FACT SHEET

SUMMARY low wage workers. However, under current law, will not reach a minimum

wage of $10/hr until 2016 (still less than SB 3 (Leno) will increase the minimum the inflation adjusted purchasing power of wage in California to $11 per hour the minimum wage in 1968). beginning in January 2016 and $13 per

hour in July 2017. Beginning in January It is essential that California increase the 2019, the statewide minimum wage would speed with which boosts in the minimum be increased annually based on the rate of wage will occur, and it is essential that inflation. future annual increases be automatic and

tied to the rate of inflation in order to BACKGROUND protect low-wage employees’ purchasing power. According to the Congressional Research Service, the purchasing power of the Under current law, a California worker federal minimum wage has decreased employed full time, year round, will earn steadily since 1968 when it was equal to $18,000 before taxes at the current rate of $10.77 in today’s dollars. The current $9/hr. This is simply unacceptable. No federal minimum wage of $7.25/hour Californian who works full time should would have to be raised by 36% to equal have to live in poverty. those levels. While federal actions to address this problem are ongoing, the cost FEDERAL ACTION of living in California remains significantly

higher than other parts of the country, and it is imperative that our state move forward  President Obama has announced an aggressively to combat poverty beyond any executive order raising the minimum minimum federal requirements. wage to $10.10/hr for federal contractors. California has not been idle in this regard,  Localities have raised the minimum and has taken steps to improve the pay of wage even higher, to $12.25/hr in

Office of Senator Mark Leno  SB 3 Fact Sheet  Page 1 Oakland, $15/hr in and  California Nonprofits $15.37/hr for hotel workers in Los  Alliance of Californians for Community Angeles. Empowerment (ACCE Action)  Western Regional Advocacy Project SOLUTION (WRAP)  California Communities United SB 3 will help lift Californians out of Institute poverty by raising the state’s minimum  National Association of Social Workers, wage. This bill will increase the state’s California Chapter minimum wage in two steps, starting at $11  Organize Sacramento an hour in 2016 and increasing an  United Domestic Workers of America additional $2 per hour in July 2017. AFSCME Local 3930 Beginning in 2019, the minimum wage  Californians United for a Responsible would be adjusted annually to the rate of Budget (CURB) inflation. Contact: Danielle Lenth, 916-651-4011 Version: February 20, 2015 STATUS

Introduced

SUPPORT

 Western Center on Law and Poverty (co-sponsor)  United Food and Commercial Workers (co-sponsor)  SEIU—CA State Council (co-sponsor)  The Women’s Foundation of California  California Partnership  California Labor Federation  City and County of San Francisco  City of  San Francisco Mayor Ed Lee  Los Angeles Mayor  Oakland Mayor Libby Shaaf  San Jose Mayor Sam Liccardo  Long Beach Mayor Robert Garcia  Santa Ana Mayor Miguel Pulido  CA School Employees Association  Friends Committee on Legislation  ACLU  National Employment Law Project  Sacramento Central Labor Council, AFL-CIO

Office of Senator Mark Leno  SB 3 Fact Sheet  Page 2