Citing the state's economy and business competition from other states as deciding factors in its decision, the California State Industrial Welfare Commission voted in late August against raising the minimum wage rate. In this decision, the Commission rejected its own earlier recommendation to increase the rate from $4.25 to $4.50 an hour next January.
The U.S. Department of Labor, however, is assessing the federal minimum wage rate and may increase it by 25 cents to $4.50 per hour. Secretary of Labor Robert Reich has also suggested that the rate should be adjusted automatically in the future to reflect inflation.
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