Business Journal: Minimum Wage Going Up
The state’s lowest-paid employees will get a raise on January 1st. But according to some state experts – it’s still not enough to keep many out of poverty.
Friday, December 28, 2007
California’s minimum-wage will climb 50 cents to $8 per hour starting Tuesday, the second in a two-step increase for the lowest-paid workers during the past year. About 1.4 million employees will benefit directly from the move, and the two-step process will increase annual wages by $2,600 for full-time workers, before federal and state payroll taxes. With the additional dollars, California’s full-time employees will earn $16,640 in 2008 — about $250 below the federal poverty line for a family of three, according to the California Budget Project in Sacramento. The group says the state can prevent the erosion of the purchasing power for the lowest-paid employees by adjusting the minimum-wage to keep pace with the cost of inflation — or about 3 percent, which would raise pay to $8.24 in 2009.