Los Angeles: Minimum Wage Going to $15 Per Hour by 2020

May 20th, 2015

This is definitely a dire situation: CEOs Make 373 Times Average Worker Pay.

Increasing the minimum wage, while politically expedient, is going to spell doom for many small businesses. A relative earnings limit, on the other hand, could bring sanity to the wage inequality situation without destroying businesses that operate on smaller profit margins, thus maintaining a competitive marketplace.

Take the stick to the big money psychopaths, not Joe Small Business Owner.

Also, Los Angeles is so terrible. Flee while you can.

Via: Reuters:

The Los Angeles City Council voted on Tuesday to increase the minimum wage in the nation’s second-largest city to $15 an hour by 2020 from the current $9, in a victory for labor and community groups that have pushed for similar pay hikes in several U.S. municipalities.

The council’s 14-1 vote on the measure, which must come back before the panel for final approval, would require businesses with more than 25 employees to meet the $15 pay level by 2020, while smaller businesses would have an extra year to comply.

Officials said the plan, which comes on the heels of similar minimum wage hikes in other major cities including Seattle and San Francisco, would increase pay of an estimated 800,000 workers in the city.

“We are embarking upon, I think, the most progressive minimum wage policy anywhere in the country,” City Councilman Curren Price Jr., one of the main backers of the proposal, said before the vote.

With the federal minimum wage stagnant at $7.25 an hour since 2009, labor and religious groups have increasingly pressed local governments in liberal-leaning areas to enact their own minimum wage hikes even as their hopes dim for an increase from the Republican-controlled U.S. Congress.

The proposal given preliminary approval in Los Angeles, where housing costs are among the highest in the nation, represents a far-reaching victory for supporters of higher pay for low-wage workers.

The 67-percent pay increase would be implemented gradually, starting at $10.50 an hour for larger employers in 2016, and gradually going up each year until it reaches $15 in 2020.

Companies with 25 or fewer workers would follow a slightly slower stepped-up increase in minimum wage pay.

Opponents of minimum wage hikes, such as Los Angeles Area Chamber of Commerce senior vice president of public policy Ruben Gonzalez, say they place an undue burden on businesses, and would force employers to lay off workers or move.

“There is simply not enough room, enough margin in these businesses to absorb a 50-plus percent increase in labor costs over a short period of time,” he told the city council.

Mayor Eric Garcetti, who last year proposed a pay increase that would have brought the minimum wage to $13.25 by 2017, said in a statement that he planned to sign the council’s measure.

Related: Seattle Hikes Minimum Wage to $15 Per Hour

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