California Reaches $15 Minimum Wage Agreement

Lawmakers and labor unions will likely avoid a messy and expensive ballot campaign after reaching a tentative minimum wage agreement. Under the terms of the agreement, the statewide minimum wage would be raised to $10.50 per hour next year, and gradually increase to $15. The Los Angeles Times reports that the minimum wage would jump from $10 to $10.50 on Jan. 1, 2017, with a 50-cent increase in 2018, followed by $1-per-year increases through 2022. Smaller businesses with fewer than 25 employees would have an extra year to comply. Future increases would be tied to inflation, but the state’s governor would retain power to block some initial increases in the case of economic downturn. Lawmakers could vote on the agreement as soon as the end of next week.