![California Governor Jerry Brown Interview California Governor Jerry Brown Interview](https://api.time.com/wp-content/uploads/2016/03/gettyimages-513725752.jpg?quality=85&w=2400)
California lawmakers and union leaders have reportedly struck a deal to hike the state’s minimum wage to $15 an hour over the next six years, Gov. Jerry Brown announced.
According to the Los Angeles Times, the deal was reached on Saturday. Brown made the official announcement on Monday, according to Reuters . The state legislature could vote on the measure by the end of next week.
“It’s a matter of economic justice and it makes sense,” Brown said at a press conference.
Under the terms of the deal, the state’s minimum wage would be raised from $10 an hour to $10.50 on Jan. 1, 2017, with a 50 cent increase the following year and $1 increases each subsequent year through 2022, bringing it to $15 an hour. Businesses with fewer than 25 employees will have until 2023 to comply.
The federal minimum wage is $7.25 an hour.
More Must-Reads from TIME
- Biden Drops Out of Presidential Race , Endorses Harris to Replace Him
- Why Biden Dropped Out
- The Chaos and Commotion of the RNC in Photos
- Why We All Have a Stake in Twisters’ Success
- 8 Eating Habits That Actually Improve Your Sleep
- Stop Feeling Bad About Sweating
- Welcome to the Noah Lyles Olympics
- Get Our Paris Olympics Newsletter in Your Inbox
Write to Tessa Berenson Rogers at tessa.Rogers@time.com