A Minimum Increase

Minimum wage continues its annual rise

 Those who earn an hourly minimum wage can expect to see a growth in their paycheck. 

After Jan. 1, 2020, the minimum wage in Santa Clara City continued its annual increase—this time in relation to the regional Consumer Price. 

Currently the minimum wage has risen to this year’s  $15.40 an hour, compared to last year’s $15.00.

The minimum wage in Santa Clara County has continued to see increases in the past five years.

In 2016, workers received $10.30 an hour, $5.10 less than the current minimum wage.

These continual increases to the minimum wage began in 2017 when the Santa Clara City Council approved the plan to incrementally increase the minimum wage to $15.00 per hour by 2019. 

This was done to combat the rising cost of living in various regions of the Bay Area.

Increases in the minimum wage are intended to prevent low income families from falling into the cycle of poverty.

The original plan was to gradually increase the minimum wage to reach $15. 

However, some regions, such as Santa Clara City, will continue to change their minimum wage in relation to the consumer price index. 

The consumer price index measures changes to the average price level of consumer goods and services purchased by households. 

The indexes are calculated by the U.S. Bureau of Labor Statistics. 

The raise applies to any employee who works two or more hours a week in Santa Clara City, no matter their immigration status.

Students working minimum wage jobs on campus will also be influenced by this change.  

“I work at the HUB and the changes to minimum wage have definitely altered how we get raises,” said Santa Clara senior Katya Trushchankova. “Our paycheck used to increase the longer we worked at the HUB but now our raises just increase to match the new minimum wage. But . . . I’m definitely not complaining.” 

Though the pay raise benefits employees, there are suspicions that consequences may be around the corner for both business owners and customers.

A University of Berkeley study analyzed the results of a rising minimum wage and concluded that businesses may have to raise their prices to compensate for the rise in employee wages. Additionally, it could also result in slower employment growth. Though there are drawbacks, the results of the study mainly favored increasing minimum wage. 

Contact Madeline Gile at madgile@scu.edu or call (408) 554-4852.