5/25/2015

LosAngelesLiftsItsMinimumWageto$15PerHourNYTimes.com

http://nti.m/1KimiFV

U.S.

Lo Angele Lift It Minimum Wage to $15 Per

Hour
JNNIFR MDINA and NOAM SCHIR

MAY 19, 2015

LOSANGELESThenationssecondlargestcityvotedTuesdayto
increaseitsminimumwagefrom$9anhourto$15anhourby2020,in
whatisperhapsthemostsignificantvictorysofarforlaborgroupsand
theirallieswhoareengagedinanationalpushtoraisetheminimumwage.
Theincrease,whichtheCityCouncilpassedina14to1vote,comesas
workersacrossthecountryarerallyingforhigherwagesandseverallarge
companies,includingFacebookandWalmart,havemovedtoraisetheir
lowestwages.Severalothercities,includingSanFrancisco,Chicago,Seattle
andOakland,Calif.,havealreadyapprovedincreases,anddozensmoreare
consideringdoingthesame.In2014,anumberofRepublicanleaning
stateslikeAlaskaandSouthDakotaalsoraisedtheirstatelevelminimum
wagesbyballotinitiative.
TheeffectislikelytobeparticularlystronginLosAngeles,where,
accordingtosomeestimates,almost50percentofthecitysworkforce
earnslessthan$15anhour.UndertheplanapprovedTuesday,the
minimumwagewillriseoverfiveyears.
Theeffectsherewillbethebiggestbyfar,saidMichaelReich,an
economistattheUniversityofCalifornia,Berkeley,whowascommissioned
bycityleaderstoconductseveralstudiesonthepotentialeffectsofa
minimumwageincrease.Theproposalwillbringwagesupinawaywe
haventseensincethe1960s.Theresasensespreadingthatthisisthenew
norm,especiallyinareasthathavehighcostsofhousing.

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LosAngelesLiftsItsMinimumWageto$15PerHourNYTimes.com

ThegroupspressingforhigherminimumwagessaidthattheLos
AngelesvotecouldsetoffawaveofincreasesacrossSouthernCalifornia,
andthathigherpayscaleswouldimprovethewayoflifefortheregions
vastlowwageworkforce.
Supportersofhigherwagessaytheyhopethemovewillreverberate
nationally.Gov.AndrewM.CuomoofNewYorkannouncedthismonth
thathewasconveningastateboardtoconsiderawageincreaseinthelocal
fastfoodindustry,whichcouldbeenactedwithoutavoteintheState
Legislature.ImmediatelyaftertheLosAngelesvote,pressurebeganto
buildonMr.Cuomotorejectanincreasethatfallsshortof$15anhour.
TheL.A.increasenudgesitforward,saidDanCantor,thenational
directoroftheWorkingFamiliesParty,whichwasfoundedinNewYork
andhashelpedpassprogressiveeconomicmeasuresinseveralstates.It
putsanexclamationpointontheneedfor$15tobewherethewageboard
endsup.
ThecurrentminimumwageinNewYorkStateis$8.75,versusa
federalminimumwageof$7.25,andwillriseto$9attheendof2015.A
littlemorethanonethirdofworkerscitywideandstatewidenowmake
below$15anhour.
LosAngelesCountyisalsoconsideringameasurethatwouldliftthe
wagesofthousandsofworkersinunincorporatedpartsofthecounty.
Muchofthedebateherehascenteredonpotentialregional
repercussions.Manyofthelowwageworkerswhoformthebackboneof
SouthernCaliforniaseconomyliveinthesuburbsofLosAngeles.
Proponentsofthewageincreasesaytheyexpectthatseveralnearbycities,
includingSantaMonica,WestHollywoodandPasadena,willalsoapprove
higherwages.
Butopponentsofhigherminimumwages,includingsmallbusiness
ownersandtheLosAngelesChamberofCommerce,saytheincrease
approvedTuesdaycouldturnLosAngelesintoawageisland,pushing
businessestonearbyplaceswheretheycanpayemployeesless.
Theyareaskingbusinessestofootthebillonasocialexperimentthat
theywouldneverdoontheirownemployees,saidStuartWaldman,the
presidentoftheValleyIndustryandCommerceAssociation,atradegroup

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thatrepresentscompaniesandotherorganizationsinSouthernCalifornia.
Alotofbusinessesarentgoingtomakeit,headded.Itsgreatthatthisis
anincreaseforsomeemployees,butthesadtruthisthatalotofemployees
aregoingtolosetheirjobs.
The67percentincreasefromthecurrentstateminimumwillbe
phasedinoverfiveyears,firstto$10.50inJuly2016,thento$12in2017,
$13.25in2018and$14.25in2019.Businesseswithfewerthan25
employeeswillhaveanextrayeartocarryouttheplan.Startingin2022,
annualincreaseswillbebasedontheConsumerPriceIndexaverageofthe
last20years.TheCityCouncilsvotewillinstructthecityattorneytodraft
thelanguageofthelaw,whichwillthencomebacktotheCouncilforfinal
approval.
ThemayorofLosAngeles,EricGarcetti,aDemocrat,hadproposeda
slightlydifferentincreaselastfallandlaternegotiatedthedetailswiththe
DemocraticcontrolledCouncil.Mr.GarcettisaidTuesdaythathewould
signthelegislationandthathehopedotherelectedofficials,includingMr.
Cuomo,wouldfollowLosAngelesspath.
WereleadingthecountrywerenotgoingtowaitforWashingtonto
liftAmericansoutofpoverty,Mr.Garcettisaidinaninterview.Wehave
toomanyadultsstrugglingtobelivingoffapovertywage.Thiswillre
establishsomeoftheequilibriumwevehadinthepast.
NewYorkCitydoesnothaveaseparateminimumwage,butMayorBill
deBlasiohasspokenoutinfavorofhigherwagesstatewide.LosAngelesis
anotherexampleofacitythatsdoingtherightthing,liftingpeopleupby
providingawageonwhichtheycanlive,Mr.deBlasiosaidinastatement
WeneedAlbanytocatchupwiththetimesandraisethewage.
Thepushfora$15anhourminimumwageisnotconfinedto
populouscoastalstates.InKansasCity,Mo.,activistsrecentlycollected
enoughsignaturestoputforwardanAugustballotinitiativeonwhetherto
raisetheminimumwageto$15by2020.TheCityCouncilisdeliberating
thisweekoverhowtorespondandcouldpassitsownmeasureinadvance
oftheinitiative.
AstheLosAngelesCityCouncilconsideredraisingtheminimumwage
overthelastseveralmonths,thequestionwasnotif,buthowmuch.The

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lonecouncilmanwhovotedagainstthebillaRepublicandidnotspeak
duringTuesdaysmeeting.
Still,foralltheirenthusiasm,someCouncilmembersacknowledged
thatitwouldbedifficulttopredictwhatwouldhappenoncetheincrease
wasfullyineffect.
Iwouldpreferthatthecostofthiswasreallyburdenedbythoseatthe
highestincomelevels,saidGilCedillo,acouncilmanwhorepresentssome
ofthepoorestsectionsofthecityandworriesthatsomesmallbusinesses
willshutdown.Instead,itsgoingtobecomingfrompeoplewhoarejusta
rungortwouptheladderhere.Itsariskthatrhetoriccantresolve.
Eveneconomistswhosupportincreasingtheminimumwagesaythere
isnotenoughhistoricaldatatopredicttheeffectofa$15minimumwage,
anunprecedentedincrease.Awageincreaseto$12anhouroverthenext
fewyearswouldachieveaboutthesamepurchasingpowerastheminimum
wageinthelate1960s,themostrecentpeak.
Manyrestaurantownershereaggressivelyfoughttheincrease,saying
theywouldbeforcedtocutasmuchashalfoftheirstaff.Unlikeother
states,Californiastatelawprohibitstippedemployeesfromreceivinglower
thantheminimumwage.TheCouncilpromisedtostudythepotentialeffect
ofallowingrestaurantstoaddaservicechargetobillstomeettheincreased
costs.
Andwhilelaborleadersandthecoalitionofdozensofcommunity
groupscelebratedintherotundaofCityHallafterthevote,they
acknowledgedtherewasalongwaytogo.
ThissaystoLosAngelesworkersthattheyarerespected,andthatsan
importantpsychologicaleffect,saidLaphonzaButler,thepresidentof
ServiceEmployeesInternationalUnionUnitedLongTermCareWorkers
hereandaleaderofthecoalition.Toknowthattheyhaveapathwayto
$15,togettingthemselvesoffofwelfareandoutofpoverty,thatshuge.
Thisshouldchangethedebateofthevalueoflowwagework.
JenniferMedinareportedfromLosAngeles,andNoamScheiberfrom
Washington.
A verion of thi article appear in print on Ma 20, 2015, on page A1 of the New York edition
with the headline: Lo Angele Lift It Minimum Wage to $15 Per Hour.

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