SACRAMENTO California's minimum wage will increase by $1.25 an hour over the next two years under a deal struck Monday between Gov. Arnold Schwarzenegger and legislative leaders. The agreement ends, at least temporarily, a stalemate between the governor and Democratic lawmakers and clears a political hurdle for Schwarzenegger as he seeks re-election. Both sides agreed a raise for the lowest-income workers was necessary but differed over whether it should be accompanied by automatic annual increases. The governor has vetoed two previous attempts to raise California's minimum wage, which is far higher than the federal rate of $5.15 an hour but...