
SACRAMENTO, Dec. 31 (UPI) -- California Gov. Arnold Schwarzenegger is reportedly set to propose a $1 an hour hike in the state's minimum wage.
The governor, who fought two previous attempts to raise the minimum wage, will advocate two 50-cent increases in September 2006 and July 2007 when he gives his State of the State message on Tuesday, the Los Angeles Times reported. That would make California's hourly minimum $7.7 -- one of the highest in the country, unless other states follow suit.
Business groups have started to support an increase, because they believe it is inevitable and they hope to stave off a referendum that would raise the minimum to $8.75 with cost of living increases to follow, the Times reported.
"The governor has come up with the best compromise the business community can get," said Bill Dombrowski, president of the California Retailers Association.
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