City Council Committee Asks For Economic Impact Study On Raising Minimum Wage In LA
LOS ANGELES (CBSLA.com) — The City Council continues to explore the idea of raising the minimum wage in Los Angeles.
The Economic Development Committee asked for a detailed study Tuesday on the economic impacts of raising the minimum wage to $13.25 an hour by 2017, and potentially to $15.25 an hour by 2019. The committee asked that an economist be hired to conduct the study, to be completed by Feb. 1.
The wage hike plan was proposed by council members Mike Bonin, Gil Cedillo, Nury Martinez and Curren Price Jr. It mirrors Mayor Eric Garcetti's proposal for raising the minimum hourly wage in the city to $13.25 over the next three years, and to peg the wage to the consumer price index thereafter.
The additional increase to $15.25 is being pushed by labor-affiliated groups like Los Angeles Alliance for a New Economy and the Los Angeles County Federation of Labor.
Supporters of the proposals say increasing the minimum wage would help those living in poverty. Business groups, led by the Los Angeles Area Chamber of Commerce, say raising the minimum wage would result in job losses.
The proposal has also drawn skepticism from some council members. Councilman Mitch O'Farrell was among five who introduced a motion last week, calling for additional scrutiny of the economic impacts.
"It is critical we do everything we can to help lift people out of poverty. It is equally critical we do so in a thoughtful and balanced way," he said.
The state minimum wage of $9 an hour is set to rise to $10 in January 2016. But for thousands of workers at non-union Los Angeles hotels with 300 or more rooms, the minimum wage is scheduled to jump to $15.37 an hour on July 1 under an ordinance recently approved by the City Council. Hotels with at least 150 rooms will be required to match that raise, starting July 1, 2016.
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