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Committees OK Minimum Wage Hikes With Inflation Adjustments

Sacramento, CA — State Assembly and Senate committees have approved similar bills that would give minimum wage earners a dollar-an-hour raise and then adjust their pay each year to keep up with inflation.

But a rival bill backed by Governor Schwarzenegger has been shelved. It includes a dollar increase but not an annual inflation adjustment.

Schwarzenegger vetoed minimum wage increases in 2004 and 2005, but announced in January that he would support an increase this year without an annual inflationary adjustment.