California Governor Arnold Schwarzenegger says he and lawmakers have reached a deal to increase the minimum wage to $8 per hour in two steps.
If approved, the legislation would increase the state's minimum wage from $6.75 to $7.50 on January 1, 2007 and then to $8.00 in January 1, 2008.
Schwarzenegger says he opposed previous minimum-wage proposals because they were indexed to inflation.