LA Mayor signs $15 an hour minimum wage law

Los Angeles Mayor Eric Garcetti signs an ordinance raising the city's minimum wage to $15 an hour by 2020 from the current $9 in Los Angeles, California June 13, 2015. REUTERS/JONATHAN ALCORN

Los Angeles Mayor Eric Garcetti signs an ordinance raising the city’s minimum wage to $15 an hour by 2020 from the current $9 in Los Angeles, California Saturday, June 13, 2015.
Photo courtesy of Reuters via Jonathan Alcorn.

Los Angeles Mayor Eric Garcetti signed a law on Saturday that will make a $15 an hour minimum wage the law by 2020. The current minimum wage in Los Angeles is $9 an hour.

With Los Angeles being the second largest city in the country, this new law will affect approximately 600, 000 workers.

“Too many Angelenos have been left behind even as we’ve put the recession in the rearview mirror,” Garcetti said at the signing ceremony.

The new law passed city-council by a 14-1 vote and will require businesses of 25 employees or more to raise their minimum wage to $15 an hour by 2020.

Wages will rise in phases, and the first hike will be implemented in July 2016 and will lift the minimum wage by $1.50 to $10.50 and hour.

A stipulation included in the new law will have the minimum wage rise along with the Consumer Price Index starting in 2022.

The new law will also create an Office of Labor Standards which will be charged with monitoring businesses in Los Angeles to ensure that they are paying employees fairly.

Since 2009, the federal minimum wage has been $7.25 an hour, but different jurisdictions have raised their minimum wages to more habitable levels.

In April, Seattle raised their minimum wage to $11 an hour and pledge to continue to raise it until it reaches $15 an hour.

According to the Pew Research Center, while the cost of buying consumer goods has risen, as is evident by the Consumer Price Index, the purchasing power of the middle-class has remained flat since the 1960s.

On April 15 of this year protests were held in 230 cities across America to have $15 an hour minimum wage as federal law.

 

[Reuters][NPR][Pew][Photo courtesy of Reuters]