(Wines&Vines) - All businesses in California will be required to increase minimum wages, capping out at $15 per hour in 2022. On March 31, the California State Assembly approved SB3, already passed by the state Senate; if (as expected) the bill is signed by Gov. Jerry Brown, the new law will gradually raise the state’s minimum wage during a six-year period; small businesses with fewer than 25 employees may receive postponements.

The new wage structure will apply to all California businesses, not just agriculture. Napa Valley Vintners communications director Patsy McGaughy said the association has remained neutral on the issue. Although she couldn’t provide statistics, McGaughy said that most Napa Valley wineries already pay workers at the elevated level.

She added, however, “When you raise the wage floor it has an effect all the way up the ladder. In Napa, most of the work done here for pruning and harvest is done by hand, and we already pay those wages.”

McGaughy noted that 95% of NVV member wineries are family owned; fewer than 10% produce more than 10,000 cases annually.? 

Wine grape growers see potential problems

Brad Goehring, chairman of the state government affairs committee for the California Association of Winegrape Growers (CAWG), was on the Assembly floor when the bill was passed yesterday. The owner of 450 acres and manager for some 10,000 more in the Lodi District, Goehring told Wines & Vines he was texting key assemblymen with talking points during the debate. 

He was not happy with the outcome of the vote, saying he foresees “destruction.”

“Grapes can be sourced elsewhere. This reverberates all the way down,” he said, adding that “hurtful” regulatory measures have proliferated in recent years, including Cal/OSHA rules, and are increasing pressures on the ag industry.