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West Hollywood sued over $ 5 an hour wage order for heroes

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WEST HOLLYWOOD, Calif. (KABC) – The city of West Hollywood is being sued for its so-called “hero pay” for grocery store workers.

The California Grocers Association has filed a federal lawsuit challenging the city’s ordinance that demands a $ 5 per hour wage increase during the coronavirus pandemic.

West Hollywood City Council voted to require large grocery stores to give employees a raise for the next 120 days.

The Grocers Association says this would lead to increased labor costs.

The group had previously filed similar lawsuits in Montebello and Long Beach.

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Meanwhile, President Joe Biden’s effort to raise the federal minimum wage to $ 15 an hour could provide a welcome opportunity for millions of working poor.

The administration launched its campaign to raise the minimum as a way to reduce the vast financial inequalities in the United States and to help stimulate the economy.

“No American should be working full time and living in poverty,” said Rosemary Boeglin, White House spokeswoman. “Research has shown that raising the minimum wage reduces poverty and has positive economic benefits for workers, their families, their communities and the local businesses where they spend those extra dollars.”

Yet this month, the non-partisan Congressional Budget Office estimated that if increasing the minimum wage to $ 15 by 2025 would raise the wages of 17 million people and lift 900,000 out of poverty, it would also put end to 1.4 million jobs. The reasoning is that employers would cut jobs to offset their higher labor costs.

The Associated Press contributed to this report.

Copyright 2021 KABC-TV. All rights reserved.



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