Written by Christopher Wysocki, Executive Director, CASE 
Senator Richard Alarcon
Chairman
Senate Labor & Industrial Relations Committee
State Capitol, Room 4035
Sacramento, CA 95814

Dear Senator Alarcon:

On behalf of the more than 9,000 members of the Consumer Alliance for a Strong Economy, I am writing to urge that you vote to oppose Assembly Bill 2832 (Lieber) when it is heard by your committee next week.

AB 2832 will raise the California minimum wage from its current $6.75 to $7.75 per hour. While this may seem like a pro-employee policy, the reverse is the case. It should be remembered that the minimum wage is an entry-level wage that employers offer mostly to the unskilled and new entrants to the work force. Data provided by the Employment Policies Institute shows that 62% of those hired at the minimum wage receive raises within one year of employment.

California is just now emerging from a fiscal crisis caused in large part due an anti-business climate. Other states are actively marketing to small business owners to relocate all or parts of their companies outside of California, and raising the minimum wage (which is already 31% higher in our state than the federal minimum wage) will only add to our reputation as an anti-business state.

Now is not the time to raise the minimum wage – doing so will cost the average small business owner roughly $40,000 per year in added labor costs. This will mean that fewer people will be hired, and that is especially bad news for those currently without a job. The Legislature must come to realize that capital is mobile, and measures such as AB 2832 only give added reasons for jobs to leave the state altogether.

Make no mistake – raising the minimum wage is not only bad for business, it is also bad for consumers. Prices will rise as a result of this increase, and the inflationary pressure AB 2832 will place on our economy will disproportionately affect the very people it portends to assist. On behalf of small business owners and consumers who make up the Consumer Alliance for a Strong Economy, I strongly urge you to oppose AB 2832.

Please feel free to call me with any questions at (916) 444-1502, or visit our website at www.ConsumerAlliance.org.

Sincerely,

Christopher Wysocki
Executive Director

cc: California State Senate
Governor Arnold Schwarzenegger