Dave Newman/iStock/Thinkstock(LOS ANGELES) — The Los Angeles City Council approved a increase of the minimum wage on Thuesday to $15 an hour for hundreds of thousands of workers to go into effect by 2020.
The minimum wage, which is currently $9 an hour, will be raised gradually over the next five years.
Small businesses with 25 employees or fewer will have until 2021 to enact the increase. The increase is not yet law, as the Los Angeles City Attorney’s office has to draft an ordinance that will return to the council for a final vote.
Business owner Kevin Litnwin said on Tuesday the wage increase will be hard on small businesses.
“Think about your own budget at home. How would you raise your costs 50 plus percent over that short of a period without any guarantee that revenue is coming in to offset it?” Litnwin said.
“We’re talking about a 50 to 60 percent increase in labor costs over a four to five year period, at most six year period,” Litnwin added.
But supporters of the plan, like Ruben Gonzalez of the Los Angeles Chamber of Commerce, point to the increase as an incentive.
“Wouldn’t you be motivated more if you got paid tomorrow, you know, higher than what you’re doing right now? So, it goes for any kind of position, any kind of job. I mean, it’s definitely a great incentive,” Gonzalez said.
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