Attorney General No.


Secretary of State No.



MINIMUM WAGE. INITIATIVE STATUTE. Provides that the minimum wage required by statute will be raised to $10.29 per hour, effective January 1, 2003. Requires the Industrial Welfare Commission to make annual adjustments to the minimum wage paid to urban wage earners and clerical workers on or before each October 1st, beginning in 2004, to reflect changes in the federal Consumer Price Index. Exempts family-owned businesses with fewer than five full-time or full-time equivalent employees from the statutory minimum wage. Also exempts students under the age of 18 who work less than 20 hours per week from the minimum wage. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure's increase in the minimum wage would result in the following major fiscal effects on state and local governments: (1) Most probably a net reduction in state and local revenues potentially in the low hundreds of millions of dollars annually; (2) Annual governmental costs - primarily in in-home supportive services - of about $800 million due to higher costs for goods and services; and (3) Unknown net costs or savings to provide health and social services to unemployed and low-wage workers, depending on the extent of job loss resulting from the measure.


Rudy Gonzalez, 11793 Briarknoll Place, Moreno Valley, CA 92557, (909) 830-5664



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