A one-sentence California State Assembly Bill, less than 50
words in total, was recently signed into law. The legislation,
Assembly Bill 10, increases California's minimum wage from $8
per hour to $9 per hour, effective July 1. Effective July 1, 2016,
it will rise again, to $10 per hour. The 2014 increase will be the
first increase to California's minimum wage since 2008 and the
26th time in the Golden State's history. California has come a
long way since 1916, when minimum wage was $0.16 per hour.
During the debate on the legislation, arguments in opposition
tended to focus on a number of claims: California's economic
recovery will take a U-turn with employers unable to increase
projected job growth; the legislation will force employers to
reduce costs in other areas, such as labor, or pass costs in the
form of higher prices for consumer goods, decreasing domestic
competitiveness; etc. But what about the hidden costs of
California's minimum wage increases?
