CITY HALL - Councilmembers Mitch O’Farrell and Bob Blumenfield issued statements this week following the discussion in Economic Development Committee of their proposal for a comprehensive analysis of the proposed citywide minimum wage increase [COUNCIL FILE].
The Economic Development Committee approved an independent full analysis of raising the minimum wage to $13.25 and to $15.25 by 2019, which will include the analysis of unintended consequences, the pros and cons of an increase, and an analysis of a cap on the increase.
“I want to thank my colleagues on the Economic Development Committee for approving our motion requesting a comprehensive economic analysis of the proposed citywide wage increases and especially how they will impact our local small businesses,” said O’Farrell. “I applaud the numerous workers and employers from the great 13th District who testified today on how this policy will affect them. There is significant momentum towards raising the minimum wage and I want to get it right.”
“Chairman Price and the Economic Development Committee have taken a crucial step towards creating a deliberative and comprehensive process,” said Blumenfield. “I look forward to continuing to work together as we vet and refine this ambitious and important proposal to lift families out of poverty in a manner that best serves our community and our economy.”
The O’Farrell-Blumenfield motion seeks an independent study of both Mayor Eric Garcetti’s plan to raise the minimum wage to $13.25 by 2017 and another proposal to increase wages to $15.25 by 2019. The motion directs the City Administrative Officer and the Chief Legislative Analyst to evaluate the pros and cons of categorical exemptions, alternative methods for measuring and implementing automatic wage increases, and establishing a base and ceiling for the increase.
O’Farrell recently distributed a small business survey to receive feedback from owners on a minimum wage increase. He also met with a group of small business owners in the 13th District, who reported that rising overhead costs combined with a minimum wage increase could force many to close their doors.