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California to raise minimum wage to highest in US

Posted by lreznick on August 22nd, 2006

California to raise minimum wage to highest in US
SAN FRANCISCO (Reuters) - California Gov. Arnold Schwarzenegger and state lawmakers reached a deal late Monday to hike the minimum wage to the highest level in the nation, aides said on Tuesday.

The agreement between the Republican governor and the Democrat-led legislature’s leaders would increase California’s minimum wage by $1.25 over the next year and a half to $8 an hour. The deal calls for an increase of 75 cents an hour next January and a rise of 50 cents an hour the following January.

The new wage would be 25 cents more than initially offered by Schwarzenegger, who vetoed previous bills to hike the state’s minimum wage. In exchange, Democrats dropped demands the wage automatically adjust upward with inflation changes.

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