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Minimum wage to reach $10 in San Francisco next year

(Photo: Flickr/oblivion9999)

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.

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