Three Wage Hikes On The Table
A member of the Los Angeles City Council is offering a compromise solution to the city’s minimum wage debate. The Council is already debating two proposals. Mayor Eric Garcetti wants to see the wage floor hiked to $13.25 by 2017, while liberal legislators are calling for an increase to $15.25 by 2019. Responding to the concerns of the business community, Councilman Paul Krekorian suggested a gradual approach that he hopes would not destroy as many small businesses as the other two plans. “We have an opportunity right now to lift many of our own hardworking residents out of poverty,” said Councilman Krekorian, “We also need to ensure that our growing economy, led by small businesses, continues to expand and create new jobs.” Under the Krekorian plan, employers with more than 51 employees would have to pay at least $13.25 per hour starting in 2018, one year later than the Mayor’s plan, and the minimum wage would increase for those companies to $15.25 per hour by 2021, which is two years later than the Council plan. Employers with 50 or fewer workers would see a minimum wage bump forcing them to pay $13.00 per hour starting in 2019 and $15.25 per hour by 2022. Once the highest wage is achieved for a given group, the respective minimum wage would be indexed to inflation. The compromise plan would set lower wage floors for teenagers, apprentices, and certain charities. Business owners are unimpressed. For example, the Valley Industry and Commerce Association criticized the plan to peg the minimum wage to inflation, calling it “a dangerous task that doesn’t give anyone flexibility during tough times, including the city,” Waldman said. The plan was attacked from the left as well. “It effectively guts our proposal to give hardworking Angelenos a raise,” said Councilman Mike Bonin. “Due to inflation and the increased costs of living every year, $15 delayed is $15 denied.”
What Happens Next
The debate over the Los Angeles minimum wage is ongoing, but it appears that some form of increase may be on the horizon.
What This Means For Small Business
Any of the three plans currently before the Council would be bad for the city’s small businesses. Even the Krekorian plan would see small businesses being forced to find the money to pay all employees at least $15.25 per hour. Such an extreme minimum wage would be a bad idea in 2019 and remain a bad idea in 2022 and beyond.
Additional Reading
The Los Angeles Times and the Los Angeles Daily News also cover the latest proposal, and the Los Angeles Times separately covers Mayor Garcetti’s flagging support among business owners.
