(August 24, 2004) California Chamber-opposed “job killer” legislation to give California the highest minimum wage in the nation is moving to the Governor’s desk.
AB 2832 (Lieber; D-Mountain View) increases the cost of doing business by increasing the state minimum wage to $7.25 in 2005 and to $7.75 in 2006, which would give California the highest minimum wage in the nation, costing California employers an estimated $2.08 billion annually.
Yesterday the Assembly concurred in Senate amendments to the bill, which the Chamber considers a 'job killer' because it will give California the highest minimum wage in the nation and increase employer costs by at least $2.08 billion annually, raising costs for consumers and driving employers to other states.
”This proposal to make California home to the highest minimum wage in the country will be a burden on employers of all sizes, which are already shouldering the heavy burdens of paying the nation’s highest energy costs as well as the nation’s highest unemployment insurance tax rates,” said Julianne Broyles, Chamber director of employee relations and small business. “This is the wrong direction for California to take just as it is starting down the road to economic recovery. We encourage Governor Schwarzenegger to veto this 'job killer'.”
For a business with 20 workers, the 50-cent-an hour increase would boost payroll costs at least $20,800 per year. The second increase would add at least $41,600 annually to that same small firm's base payroll costs.
Other business costs, such as workers' compensation, health care premiums and other employment-related taxes, also increase whenever payroll costs increase. If AB 2832 becomes law, the Workers' Compensation Insurance Rating Bureau has estimated that workers' compensation costs would rise by an additional $120 million annually by 2006.
Key Vote
The Assembly concurred Senate amendments to AB 2832 on a party-line vote of 46-33.
Ayes: Berg (D-Eureka), Bermudez (D-Norwalk), Calderon (D-Montebello), Canciamilla (D-Pittsburg), Chan (D-Oakland), Chavez (D-La Puente), Chu (D-Monterey Park), Cohn (D-Sarasota), Corbett (D-San Leandro), Correa (D-Santa Ana), Diaz (D-San Jose), Dutra (D-Fremont), Dymally (D-Compton), Firebaugh (D-South Gate), Frommer (D-Glendale), Goldberg (D-Los Angeles), Hancock (D-Berkeley), J. Horton (D-Inglewood), Jackson (D-Santa Barbara), Kehoe (D-San Diego), Laird (D-Santa Cruz), Leno (D-San Francisco), Levine (D-Van Nuys), Lieber (D-Mountain View), Liu (D-La Canada/Flintridge), Longville (D-San Bernardino), Lowenthal (D-Long Beach), Montañez (D-San Francisco), Mullin (D-South San Francisco), Nakano (D-Torrance), Nation (D-San Rafael), Negrete McLeod (D-Chino), Nunez (D-Los Angeles), Oropeza (D-Long Beach), Parra (D-Hanford), Pavley (D-Agoura Hills), Reyes (D-Fresno), Ridley-Thomas (D-Los Angeles), Salinas (D-Salinas), Simitian (D-Palo Alto), Steinberg (D-Sacramento), Vargas (D-San Diego), Wesson (D-Los Angeles/Culver City), Wiggins (D-Santa Rosa), Wolk (D-Davis), Yee (D-San Francisco).
Noes: Aghazarian (R-Stockton), Bates (Laguna Nigel), Benoit (R-Riverside), Bogh (R-Cherry Valley), Campbell (R-Irvine), Cogdill (R-Modesto), Cox (R-Fair Oaks), Daucher (R-Brea), Dutton (R-Rancho Cucamonga), Garcia (R-Cathedral City), Harman (R-Huntington Beach), Haynes (R-Murietta), S. Horton (R-Chula Vista), Houston (R-Livermore), Keene (R-Chico), La Malfa (R-Biggs), La Suer (R-La Mesa), Leslie (R-Roseville), Maddox (R-Costa Mesa), Maldanado (R-Santa Maria), Matthews (D-Tracy), Maze (R-Visalia), McCarthy (R-Bakersfield), Mountjoy (Monrovia), Nakanishi (R-Lodi, Pacheco (R-Walnut), Plescia (R-San Diego), Richman (R-Northridge), Runner (R-Lancaster), Samuelian (R-Clovis), Spitzer (R-Orange), Strickland (R-Thousand Oaks), Wyland (R-Del Mar).
Absent/abstaining/not voting: Koretz (D-West Hollywood).
Action Needed
The Chamber is calling on all employers to write Governor Arnold Schwarzenegger and ask for a “veto” of AB 2832.
For more information on AB 2832 or to view a sample letter, please visit our website at www.calchamber.com.
Staff Contact: Julianne Broyles