(September 20, 2004) California Chamber-opposed “job killer” legislation that would have given California the highest minimum wage in the nation was vetoed over the weekend by Governor Arnold Schwarzenegger.

AB 2832 (Lieber; D-Mountain View) would have increased the cost of doing business by increasing the state minimum wage to $7.25 in 2005 and to $7.75 in 2006.

Chamber President Allan Zaremberg released the following statement regarding Governor Schwazenegger’s veto of Assembly Bill 2832:

“Governor Schwarzenegger’s veto of AB 2832, the ‘job killer’ bill that would have given California the highest minimum wage in the nation, is key to keeping California’s economy on the road to recovery,” said Zaremberg. “The California Chamber of Commerce fought this ‘job killer’ bill because it would have provided a huge disincentive for employers looking for locations to expand operations or locate new jobs.”

“Increasing California’s minimum wage to the highest in the nation would have cost employers billions annually, creating higher prices for consumers and driving jobs out of California,” Zaremberg continued.

“Business costs such as workers’ compensation, health care premiums and other employment related taxes all go up whenever payroll costs increase.  If AB 2832 were enacted, workers’ compensation costs alone would rise by an additional $120 million annually, according to estimates by the Workers’ Compensation Rating Bureau,” said Zaremberg.  “Instead of placing additional burdens like this multibillion dollar minimum wage increase on employers, we should be focusing on policies that will further stimulate our economy and jobs climate.”

“Governor Schwarzenegger’s veto of this ‘job killer’ bill continues his commitment to bringing more jobs to California and helping stimulate California’s economy,” Zaremberg concluded.

For more information on the veto of AB 2832 or to view the entire “job killer” list, please visit our website at www.calchamber.com