San Jose, San Francisco to Raise Minimum Wages

Good news for people who work in San Jose and San Francisco.

Both cities are set to raise their respective minimum wages on Saturday. 

In San Jose, people currently earn $10.50 an hour. That will jump to $12 Saturday, $13.50 on Jan. 1, 2018 and $15 on Jan. 1, 2019. 

City officials estimate that the minimum wage hike will impact about 115,000 workers. 

The San Jose City Council approved these increases in November. According to an economic analysis conducted by the city, a raise from $10.50 to $5 an hour will amount to a pay increase of $3,000.

However, a labor expert at UC Berkeley told NBC Bay Area that minimum wage hikes don't have as big an impact on jobs as you might think. As people earn more, they typically spend more so the two end up balancing each other out.

Meanwhile, San Francisco's minimum wage is set to rise to $14 on Saturday under the terms of a ballot measure approved by voters in 2014.

Proposition J, approved by voters in November 2014, called for the minimum wage to rise gradually to $15 by 2018.

At the time of its passage, the city's minimum wage was $10.74.

Prop J was introduced with the support of Mayor Ed Lee, the Board of Supervisors, labor unions, non-profit groups and the Chamber of Commerce. It passed with 77 percent of the vote, well over the simple majority needed.

After 2018, the wage will be adjusted based on inflation.

The rising minimum wage was celebrated this week by worker's rights groups, who said that work was still needed to enforce minimum wage laws on the books.

Minimum wage violations by employers take away nearly $2 billion in earnings each year in California, according to labor groups.

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