Minimum wage in California will soon be increasing, making it the highest in the country.
The raise will come in two parts. Minimum wage will rise from $8 to $9 this summer, and by 2016, it will be at $10.
This increase is estimated to affect about three million minimum wage workers in the state. Although this comes as positive news for those struggling to make ends meet on minimum wage.
Many pro-business groups are calling this new law a job killer.
Mario Rodriguez works in construction. Helping others obtain their american dream, all while trying to build his own.
He's one of an estimated three million Californians who are trying to make ends meet earning the state's minimum wage of $8 an hour.
"I worked at an automotive place back in '87. That started off at $5.15 an hour. I'm at $8. That's about $2.85 for the last 20, 30 years," said Rodriguez a temporary worker.
But come this July, minimum wage in California will rise to $9 dollars an hour, and by January of 2016, $10 dollars an hour. That will make it the highest minimum wage in the United States.
It's the first time in six years that the state's minimum wage has increased.
"And as we all know, over the last six years, the price of food, of clothing, gas, rent, utility bills have all gone up," said Assemblyman, Luis Alejo, the California minimum wage bill author.
That's the case for Rodriguez who supports himself and his wife. He's been working full-time through a temp agency since last summer as a general laborer
taking home about $280 dollars per week.
He said more than half of his monthly earnings go toward paying the rent on his one bedroom apartment.
"That comes rolling down to a little bit of change in your pocket after you're done with bills and saving up for here and there. I'm lucky if I get to go out to Hometown Buffet once a year," said Rodriguez.
For those who live paycheck to paycheck, like Rodriguez, an extra $2 per hour will go a long way, and push him past the federal poverty level.
The debate over minimum wage has recently taken center stage nationally.
In President Barack Obama's State of the Union Address last month, he called on employers to voluntarily raise wages for those who are paid the minimum.
Now, congressional democrats have proposed a bill that would raise the federal minimum wage from $7.25 to $10.10 an hour.
It's a move that the congressional budget office estimates could increase wages to more than 16 million workers, but also eliminate half a million jobs.
Employers, such as Lorraine Salazar, will have to find a way to offset the added costs.
"You're going to have to increase our menu prices anywhere from 15% to 20% in order, just to cover the initial costs on this increase. That's a big chunk to do at one time," said Lorraine Salazar the co-owner Sal's Mexican Restaurants.
Salazar co-owns the three Sal's Mexican Restaurants that employ about 150 people.
She estimates this mandate will end up costing about 40% more to her bottom line after factors such as payroll taxes and workers comp costs are included.
Although her servers start off making minimum wage, she says after tips, servers already take home at least $ 18 an hour.
And now, it will be even more imperative for her to look for the most productive and efficient workers.
"You're more valuable, and you're going to get more hours as an employee, as a staff member, if you are able to be more of a utility person and do more than one position," said Salazar
Financial analyst Marty Mazorra agrees, he says many businesses will find a way to survive by passing along the costs to consumers and workers.
"But more likely, it's really going to get paid by the employee, believe it or not. and the next person who really pays the cost is the employee who's not going to get the next job," said Mazorra.
As a temp, that next job may be Rodriguez's.
"It's kind of tough because you wake up, and might get the phone call in the morning, saying don't show up. You know, they don't need you after all," said Rodriguez.
He says he's not looking for a hand out. He is working hard to secure stable employment through the temp agency.
Supporters of the mandate say the increase in wages will benefit California's economy as workers like Rodriguez will have more buying power.
But it's a give and take situation.
"It's about the poor employee who thinks they're getting something good, but in the long run, I'm sorry, but they're the ones who are going to pay the costs," said Mazorra.
The raise will come in two parts. Minimum wage will rise from $8 to $9 this summer, and by 2016, it will be at $10.
This increase is estimated to affect about three million minimum wage workers in the state. Although this comes as positive news for those struggling to make ends meet on minimum wage.
Many pro-business groups are calling this new law a job killer.
Mario Rodriguez works in construction. Helping others obtain their american dream, all while trying to build his own.
He's one of an estimated three million Californians who are trying to make ends meet earning the state's minimum wage of $8 an hour.
"I worked at an automotive place back in '87. That started off at $5.15 an hour. I'm at $8. That's about $2.85 for the last 20, 30 years," said Rodriguez a temporary worker.
But come this July, minimum wage in California will rise to $9 dollars an hour, and by January of 2016, $10 dollars an hour. That will make it the highest minimum wage in the United States.
It's the first time in six years that the state's minimum wage has increased.
"And as we all know, over the last six years, the price of food, of clothing, gas, rent, utility bills have all gone up," said Assemblyman, Luis Alejo, the California minimum wage bill author.
That's the case for Rodriguez who supports himself and his wife. He's been working full-time through a temp agency since last summer as a general laborer
taking home about $280 dollars per week.
He said more than half of his monthly earnings go toward paying the rent on his one bedroom apartment.
"That comes rolling down to a little bit of change in your pocket after you're done with bills and saving up for here and there. I'm lucky if I get to go out to Hometown Buffet once a year," said Rodriguez.
For those who live paycheck to paycheck, like Rodriguez, an extra $2 per hour will go a long way, and push him past the federal poverty level.
The debate over minimum wage has recently taken center stage nationally.
In President Barack Obama's State of the Union Address last month, he called on employers to voluntarily raise wages for those who are paid the minimum.
Now, congressional democrats have proposed a bill that would raise the federal minimum wage from $7.25 to $10.10 an hour.
It's a move that the congressional budget office estimates could increase wages to more than 16 million workers, but also eliminate half a million jobs.
Employers, such as Lorraine Salazar, will have to find a way to offset the added costs.
"You're going to have to increase our menu prices anywhere from 15% to 20% in order, just to cover the initial costs on this increase. That's a big chunk to do at one time," said Lorraine Salazar the co-owner Sal's Mexican Restaurants.
Salazar co-owns the three Sal's Mexican Restaurants that employ about 150 people.
She estimates this mandate will end up costing about 40% more to her bottom line after factors such as payroll taxes and workers comp costs are included.
Although her servers start off making minimum wage, she says after tips, servers already take home at least $ 18 an hour.
And now, it will be even more imperative for her to look for the most productive and efficient workers.
"You're more valuable, and you're going to get more hours as an employee, as a staff member, if you are able to be more of a utility person and do more than one position," said Salazar
Financial analyst Marty Mazorra agrees, he says many businesses will find a way to survive by passing along the costs to consumers and workers.
"But more likely, it's really going to get paid by the employee, believe it or not. and the next person who really pays the cost is the employee who's not going to get the next job," said Mazorra.
As a temp, that next job may be Rodriguez's.
"It's kind of tough because you wake up, and might get the phone call in the morning, saying don't show up. You know, they don't need you after all," said Rodriguez.
He says he's not looking for a hand out. He is working hard to secure stable employment through the temp agency.
Supporters of the mandate say the increase in wages will benefit California's economy as workers like Rodriguez will have more buying power.
But it's a give and take situation.
"It's about the poor employee who thinks they're getting something good, but in the long run, I'm sorry, but they're the ones who are going to pay the costs," said Mazorra.