California Proposition 210, Minimum Wage Increase (1996)
Proposition 201 increased the minimum hourly wage paid by employers to employees working in all industries in California to $5.00 per hour beginning March 1, 1997, and to $5.75 per hour beginning March 1, 1998.
California first adopted laws setting a minimum wage in 1916, 22 years before the federal government set a minimum wage.
Text of measure
The official ballot summary that appeared on the ballot said:
- Increases the state minimum wage for all industries to $5.00 per hour on March 1, 1997, and then to $5.75 per hour on March 1, 1998.
- Requires the California Industrial Welfare Commission to adopt minimum wage orders consistent with this section, which orders shall be final and conclusive for all purposes.
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 210. That estimate was:
- The fiscal effect of this measure would depend on whether the federal minimum wage increase passed by Congress in August is signed into law. Because California's minimum wage must be at least as high as the federal rate, an increase in the federal rate would reduce the incremental fiscal effects of this measure.
- Unknown net impact on state and local government revenues, primarily depending on the measure's effect on the level of employment, income, and taxable sales in California.
- Annual state and local government wage-related costs of approximately $300 million (about $120 million if the federal minimum wage increase is enacted).
- Net annual savings in state health and welfare programs, potentially in the low tens of millions of dollars ($10 million to $15 million if the federal minimum wage is enacted).
- Official Voter Guide to Proposition 210
- Full text of Proposition 210
- November 5, 1996 California election results (dead link) (PDF)
- PDF of the paper version of the November 5, 1996 Ballot Propositions Voter Guide
- League of Women Voters analysis