California lawmakers approved a bill Thursday that would increase the state's minimum wage to $10 an hour within three years.
The bill passed in the Senate by a 26-11 vote and hours in the Assembly with a 51-25 vote, reports KTLA. Now, Gov. Jerry Brown is expected to sign the bill into law once it reaches his desk.
"This legislation is overdue and will help families that are struggling in this harsh economy," Brown said in a statement.
The measure would raise the current $8 minimum wage to $9 an hour next July 1 and to $10 on Jan. 1, 2016.
The 25 percent increase would be the first minimum-wage hike in California in five years and would put extra money in the pockets of an estimated 2.4 million Californians.
"This is the time to raise the minimum wage to provide relief for hard-working families," said the bill's author, Assemblyman Luis Alejo, adding that about 3 of 5 minimum-wage earners are 26 or older, reports the LA Times.
However, critics, like the California Chamber of Commerce, argued that increasing the minimum wage could lead to job losses and force some companies to cut workers' hours. The coalition warned that higher wages could raise the unemployment rate and jeopardize California's economic recovery.
"This is an unprecedented wage hike," said Jot Condie, president of the California Restaurant Assn. He predicted that many of the state's 87,000 eateries would deal with increased labor costs by cutting back employees' hours and reducing hiring.
Washington State currently leads the nation with a minimum wage of $9.19 an hour. Once California's minimum wage increases to $10 an hour, it will be the highest in the nation.