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Hollywood’s Minimum Wage Rise Begins
LOS ANGELES, CA Years of preparation, a $ 15 minimum wage went into effect Thursday for small businesses in Hollywood.
Six years after the city approved a gradual increase in the minimum wage, the city’s lowest-paid workers have seen their hourly wages increase by more than half, from $ 9 to $ 15. The law, adopted in 2015, applied first to large companies and, since Thursday, to small companies as well. From now on, it will continue to increase with cost of living adjustments. At the time, Los Angeles became one of the largest cities in the country to institute a minimum wage of $ 15.
“We can do good for our workers and do well for our businesses. We’re not just telling businesses you need to raise wages to $ 15 an hour, we’re doing everything we can to help them,” said the Mayor Eric Garcetti, citing the city’s grants to struggling businesses during the COVID-19 pandemic and the Al Fresco outdoor dining program that the city is working to make permanent.
The law was passed 14 to 1 by city council on May 14, 2015, and the increase in the minimum wage from $ 9 to $ 15 was phased in over a five-year period. Last year, the law went into effect for large businesses, but small businesses had until Thursday to start giving workers a minimum of $ 15 an hour.
The ordinance increased the minimum wage from July 2016, when it rose to $ 10.50 an hour for companies with 26 or more employees. The city’s minimum wage rose to $ 12 an hour in July 2017, $ 13.25 an hour in July 2018, $ 14.25 an hour in July 2019 and finally to $ 15 in July 2020 .
Companies with 25 or fewer employees had to start raising wages a year later and had until Thursday to hit the $ 15 an hour mark.
Once the wage hits $ 15 an hour for small and large employers, the ordinance requires the minimum wage in 2022 to continue to rise in line with the cost of living.
“I grew up in a union family, the proud son of a Teamster. I know the importance of providing fair wages to workers, ”City Councilor Mitch O’Farrell said Thursday. “I also know firsthand how important it is to protect and look after our small businesses.”
“Six years ago, Los Angeles City Council paved the way for a fair policy for workers and fair for business, and today those efforts are paying off. After the exhausting pandemic and the toll it takes she made to work Angelenos, the historic $ 15 milestone couldn’t have come at a better time, ”he said.
David Huerta, President of the Service Employees International Union – United Service Workers West, said:
“Service workers are the backbone of our economy; $ 15 an hour is a big milestone, and it comes at a critical time for all service workers who have worked so hard and served on the front lines during the COVID-19 pandemic. A fair wage is a necessary ingredient for workers to be treated with dignity, and Los Angeles is to be commended for leading this issue well ahead of others. “
City News Service and Patch Staffer Paige Austin contributed to this report.
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