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A new minimum wage will take effect in California next year, an increase caused by rising inflation.
Gov. Newsham’s administration said Thursday that the state’s minimum wage would jump to $ 15.50 an hour.
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The increase is required by a state law passed in 2016.
The law says the minimum wage should rise to $ 15.50 an hour if inflation rises by more than 7% between 2021 and 2022 fiscal years.
California Gov. Gavin Newsom (AP Photo / Rich Pedroncelli, File, Pool)
The California Treasury Department said it predicted that inflation for fiscal 2022 would be 7.6 percent higher than the previous year, causing an increase.
inflation cooled on an annual basis for the first time in months in April, but rose more than expected as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumer prices close to a 40-year high.
INFLATION INCREASES 8.3% IN APRIL, WHICH IS SEEN NEARLY 40 YEARS OLD
California lawmakers voted to raise the minimum wage to $ 15 an hour in 2016, but the increase was gradual over several years.
Currently, the minimum wage is $ 15 per hour for companies with 25 or more employees and $ 14 per hour for companies with 25 or fewer employees.
California has about 3 million low-wage workers.
Governor Gavin Newsom’s administration announced on Thursday, May 12, 2022, that rising inflation will automatically raise the California minimum wage to $ 15.50 an hour next year. (AP Photo / Rich Pedroncelli)
In a preliminary review of the budget proposal, Newsom’s plan includes sending checks of up to $ 800 to car owners to compensate for record high gas prices this year, despite opposition from Democrats in the legislature. That would be $ 400 per car for a maximum of two owner’s cars – plus another $ 750 million to give everyone a free ride on public transportation for three months.
NEWSOM’S PLAN FOR FREE GAS CARDS WILL MOVE PRICES, INFLATION EVEN HIGHER, AN EXPERT WARNS
Instead, Democratic leaders prefer to send $ 200 checks to low- to moderate-income taxpayers and their dependents.
In California, average gas prices hit a record high of $ 5.91 a gallon in March.
On Thursday, May 12, 2022, Governor Gavin Newsom’s administration proposed sending $ 1,000 checks to workers in hospitals and nursing homes in recognition of their dangerous work during the pandemic. (AP Photo / Jae C. Hong, file)
The proposal also revealed a new plan to send checks of at least $ 1,000 to 600,000 workers in hospitals and nursing homes in recognition of their dangerous work during the pandemic.
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Newsom also proposed new spending on Thursday of up to $ 2.7 billion to fully fund the state’s rental support program.
The Associated Press contributed to this report.
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