Small Businesses Object to Minimum Wage Increase Proposal

by Gary Toebben

There have been times when the voice of business was a distinct minority on issues before the Los Angeles City Council. That was not the case during the five hearings on increasing the minimum wage that City Council held throughout L.A. this spring. Small businesses that urged the City Council to go slower with the minimum wage increase, carve out small business and non-profits and include tips in calculating the total compensation that their employees earn represented about half of the speakers at the hearings.

My hat’s off to those several hundred small business owners and representatives who invested their time away from their businesses and families (3-4 hours per hearing) to speak up about the economic impact of the proposed minimum wage increase on their business. They talked about investing their savings in their small business and the challenges they face every day to meet their payroll and keep their doors open. They also talked about the likelihood that in order to provide a wage increase for some employees, they would have to reduce hours for others.

Their testimony was strong and it was from the heart, but in the end, it did not carry the day. A minimum wage increase that is very similar to the original proposal by Mayor Garcetti and augmented by members of the City Council to reach $15 per hour will be voted on at the City Council meeting that begins at 10 a.m. today. We will try again to make the case that was emphasized by small businesses at the hearings.

Small businesses understand the intent of the minimum wage increase, but they are frustrated that they will bear the primary burden. Last week, there were banners hanging throughout City Hall celebrating Small Business Week. There are many small businesses owners in L.A. who don’t feel like the City is celebrating them today.

And that's The Business Perspective.