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
- Jane Fonda Champions Climate Action for Every Generation
- Biden’s Campaign Is In Trouble. Will the Turnaround Plan Work?
- Why We're Spending So Much Money Now
- The Financial Influencers Women Actually Want to Listen To
- Breaker Sunny Choi Is Heading to Paris
- Why TV Can’t Stop Making Silly Shows About Lady Journalists
- The Case for Wearing Shoes in the House
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Write to Tessa Berenson at tessa.Rogers@time.com