Higher Minimum Wage, Fewer Jobs

In January, 77,000 Maryland workers got a raise as the minimum wage in the state rose to $8 per hour. For example, Los Angeles has promised to raise the minimum wage to $15/hour by 202o, while Seattle will achieve the same a year later.

Workers hold a rally in support of the Los Angeles County Board of Supervisors’ proposed minimum wage ordinance, in Los Angeles, on Tuesday, July 21, 2015.

Wages will be a big topic of debate during today’s meeting of the Los Angeles County Board of Supervisors. “And again, that hurts our economy and it hurts our general fund that we have the ability to support the county services for the 10 million people that we represent”, Antonovich said.

The wage hike applies only to the county’s unincorporated territories (including Stevenson Ranch, Castaic, Agua Dulce, Acton) and not to incorporated cities such as Santa Clarita. It is just not possible to live on the current minimum wage – especially not in high cost areas of the state.

The city of Santa Clarita City Council is not now considering a minimum wage increase, said city of Santa Clarita Spokeswoman Gail Morgan.

The expected move follows nationwide strikes by employees of McDonald’s Corp. and other fast-food chains who demanded a $15 hourly wage.

Though there are practical concerns about how to budget for the city-led increases, many believe it will ultimately increase the campus work force, as it will encourage students to look for jobs on campus rather than search elsewhere. The vast majority of fast food workers in New York have to rely on government subsidies to sustain their families because of low wages that are not enough to meet basic needs.

The policy developed after UC Berkeley came under criticism for continuing to pay employees the state minimum wage, despite the city of Berkeley’s minimum wage increase to $10 an hour in October 2014.

Thereafter, it would be adjusted annually based on the Consumer Price Index calculated and used by the state of Washington.

The county supervisors directed lawyers to draft a similar pay scale that would top out in 2020, although smaller businesses would have an extra year to reach that mark.

Tacoma Mayor Marilyn Strickland lauded the ballot measure as a compromise balancing the interests of both businesses and workers.

Democrats in Congress have already put forward proposalsto raise the federally mandated minimum wage to $12 an hour by 2020.

“Regardless of what the county does on minimum wage, this kind of support for small business is much needed and long overdue”, said Tracy Rafter of the Los Angeles County Business Federation.

But other cities are taking a wait-and-see attitude or are actively opposed to raising the wage.

“A dramatic jump all at once to $15 I think would be too high and too fast”, she said. “We must protect the workers slated for wage increases by developing an innovative, collaborative and vigorous enforcement effort”.