Consideration Separate From City Wage Plans
The
L.A. County Board of Supervisors is considering increasing its minimum wage.
The Board voted unanimously Tuesday to approve a study of the implications of
such an increase. The city of Los Angeles had already been pondering a wage
hike, but the 5-0 vote put into play the prospect of an increase applying to an
additional one million residents of the surrounding area. LA County has not
joined the sixteen localities across the country that have created their own
minimum wages; as a result, its minimum wage is equal to the state’s $9 per
hour.
What Happens Next:
The incipient effort to raise
the County’s minimum wage faces many steps before it could be implemented. The
Board approved a $95,000 contract with the Los Angeles Economic Development
Corporation to review the budgetary and economic consequences of an increase.
The results of that study are not binding, and any proposal stemming from it
would have to go through the same process as any new piece of legislation.
However, Supervisors Sheila Kuehl and Former US Labor Secretary Hilda Solis are
vocal supporters and unlikely to let the measure fade.
What This Means For Small Business:
An
increased Los Angeles County minimum wage would put local businesses at a
disadvantage compared to their competitors in different counties. As a result,
business owners may have to cut staff in the face of rising labor costs. A
report commissioned by the Los Angeles Area Chamber of Commerce concluded that
the city’s proposed minimum wage bump would result in the loss of between
73,000 and 140,000 jobs over the first five years. That report did not consider
the implications of countywide move. LA County Supervisor Michael D.
Antonovich, who voted for the study despite misgivings, warned that an
increased County minimum wage would create fewer jobs: “You have a situation
where a person can go across that boundary to purchase their products at a
lower price, and also those in the county part could have a job loss.”
Additional Reading:
News media outlets covering LA
County’s consideration include the Los Angeles Times, the Los Angeles Wave, Santa Clarita Valley (CA) News, and the Inland Valley (CA) Daily Bulletin.
