Los Angeles – The Los Angeles Economic Development Committee approved Tuesday the procurement of an independent study on the impacts of raising wages across the city. The study will incorporate a series of specific questions that include researching the potential impacts increased wages would have on the local economy, job retention and creation and the pros and cons of including exemptions for small businesses and local non-profits.
The study comes as a result of a motion introduced by Councilmembers Curren Price, Mike Bonin, Gil Cedillo and Nury Martinez which called on the City Attorney to draft an ordinance that would raise the minimum wage to $13.25 by July 1, 2017, and called for further steps to raise the minimum wage to $15.25 by 2019. The motion also proposes attaching the minimum wage to the Consumer Price Index (CPI), so the wage can keep pace with future inflation.
“We know that when hard working men and women see more money in their paychecks, their cash isn’t going to Wall Street – it’s spent on Main Street – and being able to afford Main Street is a huge part of capturing the American Dream,” said Councilman Curren Price.
“Well today, we move one step closer to helping hundreds of thousands of local residents rise above poverty and realize those aspirations. As a former small business owner, I know the challenges that lie ahead, but I also see the potential for gain. Today we only laid the foundation for this important policy. Much discussion lies ahead that will no doubt include community input.”
The Committee also heard comments from the public on a motion recently submitted by Councilmembers Mitch O’Farrell and Bob Blumenfield, asking for a series of questions to be included in any city-wide minimum wage motion. Some of those questions were included in the committee action taken Tuesday, which asked that the study on raising wages come back to Economic Development Committee by February 1, 2015.