LOS ANGELES (CBSLA.com) — Mayor Eric Garcetti Monday called for the city of Los Angeles to raise the minimum wage up to $13.25 per hour.
Garcetti announced his “Raise The Wage LA” plan during a Labor Day rally at Martin Luther King Jr. Park in South Los Angeles.
“Today, I am proud that we are launching the largest anti-poverty program in this city’s history,” Garcetti said. “If you work hard, you shouldn’t be in poverty.”
Under Garcetti’s plan, minimum wage in the city of LA would increase $1.25 in the first year and $1.50 in each of the following two years before topping out at $13.25 by 2017, officials said. The current minimum hourly wage in California is $9 and is set to increase to $10 in 2016.
Any future increases would be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to ensure wages are not eroded by inflation, Garcetti said.
“The minimum wage shouldn’t be a poverty wage,” Garcetti said in a statement. “Angelenos working full time should be able to afford to live in our amazing city.”
A study of Garcetti’s proposal (PDF) by leading U.C. Berkeley economists and researchers Michael Reich, Ken Jacobs, Annette Bernhardt, and Ian Perry stated, “Most businesses would be able to absorb the increased costs, and consumers would see a small one-time increase in restaurant prices.”
The report also predicted the policy’s impact on overall employment “is not likely to be significant,” according to Garcetti’s office.
KNX 1070’s Jan Stevens reports some economists such as Dr. Dale Belman, Michigan State University professor of Human Resources and Labor Relations, have downplayed the proposal’s effect on job creation.