1 tyPublic Policy Institute of California ID: 221760
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1 a County minimum wage, apart from any city or state minimum wage? The County of Los Angeles is the nations largest local government jurisdiction, comprising 10 million residents (roughly 26% of Californias entire population), about a million of whom live in unincorporated Countwage policy is important. City of Los Angeles is the largest of the apply uniformly across half the Countys population, with the expectation that additional create a consistent regional policy. of raising the minimum wage? under $30,000 for a family of four. Decreasing poverty will reduce dependence on and CalFresh, saving taxpayer expense businesses will benefit from a higher minimum wage, because raising the minimum wage will lead to a more stable and productive workforce by reducing turnover and retaining new employees. They also argue hare of their income on consumer goods, thus stimulating the local economy, partithe minimum wage will overburden low-wage all businesses and non-profit organizations, increasing unemployment by sloIn addition, while some economists worry that businesses will flee to lower minimum- businesses to either absorb some of the expensWhat is the proposed County minimum wage? approved on March 31, 2015 a joint motion by Supervisors Sheila Kuehl and Hilda Solis to commission an independent review and analysis by the Los Angeles County the UCLA Labor Center, and a fourth by Beacon Economics in conjunction with the differing conclusions in terms of local and economic impacts. The County will look at the LA City new minimum wage ordinance, expected to be voted Who would be covered under its provisions? That has not yet been decided, either. The County of Los Angeles is the largest others. Those employees who could potentially be covered include roughly 2,500 employees, or 2.5% of than $15.25/hr. Several hundred County , could also be included. s in the unincorporated ber of additional businesseees in unincorporated areas is unknown at this time. How much would it cost the County?That depends on how high the minimum wage is raised, and how many employees are r the Board receives the LAEDC analysis. What would be impact on employment? view is that the market is a closed system tunemployment. Any increase in prices to cover the higher payroll costs will necessarily that customers may well be less sensitwage employees will more rapidly circulate How quickly would it be implemented? All proposals include a gradual phase-in or disparate economic impacts as What about disparities between jurisdictions that may or not be covered by the County minimum wage? Economists recognize that there will be some disparate and neighboring jurisdictions, though they disagree on whether they will result in a net positive or negative impact on the region as a whole. This is an argument for a uniform es and unincorporated County areas. Why isnt this a matter of state or federal law? to their own policymaking. pooling is allowed for front and back of house workers. While there are efforts to change that state law, in effect since 1975, LA County or City has no jurisdiction over it. per person, including 70% of restaurant workers. Also, more than 56% of tipped aurant industry, in the hospitality, carwash, nail and beauty salon, and massage industries.