For the first time in the US history, a city is set to have a minimum wage higher than $10. And that city is, you guessed it, San Francisco.
As the Ex reminds us, thanks to the passing of Proposition L in 2004, SF’s minimum wage has increased every year due to inflation.
With an increase of 32 cents per hour set to be implemented on January 1, 2012, SF’s hourly minimum wage will rise from $9.92 to $10.24. California’s state minimum wage is $8 an hour, still far higher than the federal minimum, which is $7.25.
Though businesses were initially opposed to Proposition L, many see the continuous rise to the city’s minimum wage as an economic boost of sorts. Karl Kramer, campaign co-director of the SF Living Wage Coalition, told the Ex “When workers have more money in their pockets, they spend it in the local economy, so we see more job growth.”
Others worry that due to such a steep minimum wage, businesses will essentially cap their economic activity and hiring. Though unemployment is still high in the city, it’s dropped considerably since January, moving from 9.5% to 8.1%.
CBS 5 adds that those pulling full-time hours and making the new SF minimum wage will see an annual income of about $21,000.