(June 22, 2004) California Chamber-opposed “job killer” legislation to increase the state’s minimum wage will be heard by the Senate Labor and Industrial Relations Committee June 23.

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.  Employer costs would rise by at least $2.08 billion annually, raising costs to consumers and driving employers to other states.

The Chamber has labeled AB 2832 a “job killer” because it will negatively impact California’s recovering economy and cause businesses to cut jobs and close their doors in addition to moving out of the state to avoid the high cost of doing business in California.

'California currently has the nation's highest energy costs and unemployment insurance tax rates,' said Julianne Broyles, director of employee relations and small business. 'An increase to the minimum wage would make California home to the highest minimum wage in the nation as well.”

The Chamber believes that rather than working to make California less competitive by mandating the minimum wage increase, the Legislature should focus on removing barriers to productivity and wage growth that government has imposed on the private sector.

Positive actions can include reducing costs associated with providing benefits such as health and unemployment insurance; increasing opportunities for small business formation; increasing the skills of the current and future workforce; enacting significant regulatory reform; and doing no more harm and resisting new efforts to increase either employment costs or business liability in California.

Action Needed
The Chamber is urging all employers to contact their Assembly representative to oppose AB 2832.  Use our easy-to-edit position letters to contact members of the Senate Labor and Industrial Relations Committee.

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