11/23/2024

Minimum-wage law’s opt-out provision unlikely to be used by governor

A California governor is asked to sign historic, far-reaching legislation that could have unknown consequences — and tells the Legislature he will only go along if there is an escape clause that can be used if the law causes economic mayhem.

That’s what happened in 2006 when Arnold Schwarzenegger worked with legislative leaders to shape Assembly Bill 32, the landmark law forcing a shift to cleaner, costlier sources of energy. And it’s what happened in the last month with Jerry Brown and the bill increasing the state’s minimum wage steadily until it reaches $15 an hour in 2022, which Brown signed Monday. A provision that allows future governors to suspend an increase in bad economic times was included at Brown’s insistence:

Brown had warned a $15-an-hour wage must be done carefully, noting costs to employers and the state. But with a measure heading for the November ballot, he negotiated with unions and other advocates to include provisions that allow governors to postpone an increase if the economy falters.

View Article