Sacramento Minimum Wage: City Approves Gradual Hike Amid Protests by Labor Groups, Small Businesses

City officials of Sacramento, California, voted for a gradual hike in minimum wage as a last-minute compromise was reached between labor and business unions late Tuesday, according to reports.

The Sacramento City Council approved the new plan, which calls for minimum wage to gradually increase to $12.50 an hour by 2020, in a 6-3 vote. The proceedings were disrupted at least twice by angry protestors, who were restrained by police.

The new minimum wage plan was passed after Sacramento Mayor Kevin Johnson , city council officials, and business and labor leaders removed certain controversial exemptions, sources close to the matter told the Sacramento Bee.

While the new plan has gained murmurs of approval from some, low-wage workers have slammed the proposal, according to the Sacramento Bee. Fabrizio Sasso, head of the Sacramento Central Labor Council, had earlier urged the city council to vote against the new compromise, the report said.

In addition to labor leaders, operators of small businesses also testified against the law. However, the plan received support from certain business groups.

Peter Tateishi, president and CEO of the Sacramento Metro Chamber of Commerce, told the Sacramento Bee that “this is a more workable compromise.”