RENEE MONTAGNE, host: Here in California, lawmakers have agreed to raise the minimum wage by about 20 percent over the next year and a half. The increase will lift the state's minimum wage from $6.75 an hour to $8.00 an hour. It will be implemented in two steps: first a $0.75 increase at the beginning of 2007, and then another $0.50 increase on January 1st, 2008.</s>RENEE MONTAGNE, host: Governor Arnold Schwarzenegger hailed the pay raise as a boost for low-wage workers and state businesses, saying, quote, California is coming back stronger than ever.</s>STEVE INSKEEP, host: A labor leader said the governor had vetoed similar bills in the past, and said the reason for this agreement is because it's an election year.</s>STEVE INSKEEP, host: And, according to the California Federation of Labor, the jump to $7.50 on New Years Day 2007 will make California's minimum wage the nation's fourth highest, behind Washington State, Oregon, and Connecticut. After a fierce debate in Congress this summer, the federal minimum wage remains at $5.15 an hour.
California lawmakers agree to raise the minimum wage by almost 20 percent over the next 18 months. The increase will lift the state's minimum wage from $6.75 an hour to $8 an hour. It will be implemented in two steps, first a 75-cent increase at the beginning of 2007, and then another 50-cent increase on January 1, 2008.