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San Francisco Becomes First U.S. City To Top $10 Minimum Wage

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(credit: CBS)

(credit: CBS)

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SAN FRANCISCO (AP) — San Francisco will make history on Jan. 1 when it becomes the first city in the nation to top $10 for the minimum wage.

It’s only a 32-cent hike, from $9.92 to $10.24. But for many low-income workers it’s a psychological boost that will help them ring in the new year with more money in their pocket for daily necessities.

San Franciscans passed a proposition in 2003 that requires the city to increase the minimum wage each year, using a formula tied to inflation.

Workers love it. But some employers say that when you combine a hike to minimum wage with the city’s payroll tax, mandated medical care stipend and the nine days of paid sick leave, it can lead to layoffs.

Copyright 2011 The Associated Press.

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