Due to the plan, the minimum wage will increase over the next five years and reach the top at $15 an hour by 2020 On Tuesday the City Council of Los Angeles, the nation’s second-largest city, voted for increasing the minimum
Due to the plan, the minimum wage will increase over the next five years and reach the top at $15 an hour by 2020.
On Tuesday the City Council of Los Angeles, the nation’s second-largest city, voted for increasing the minimum wage to $15 an hour by 2020 from the current $9, so the labor and community groups that have pushed for similar pay hikes in several U.S. municipalities gained their victory.
Last week the council’s Economic Development Committee approved the measure. Firstly, the wage will be boosted in July 2016 from $9 to $10.50 an hour for businesses with 26 or more employees. Then it will go up to $12 an hour by July 2017, $13.25 per hour by July 2018, $14.25 per hour by July 2019 and finally reach the top rate in 2020. For employers with 25 or fewer employees had been made an allowance, since they would not have to pay $15 per hour until 2021.
The authority said the LA plan, which had a lot of similar to minimum wage hikes in other major cities including Seattle and San Francisco, would increase pay of an estimated 800,000 workers in the city.
In Los Angeles housing costs are among the highest in the nation and that proposal given and supported there by the government represents a far-reaching victory for supporters of higher pay for low-wage workers.
In 2016 the starting point will be $10.50 an hour for larger employers, since the 67-percent pay increase would be implemented gradually, and then it will be going up each year until it reaches $15 in 2020.
A little bit slower minimum wage pay increasing would be followed by the companies with less than 25 workers.
However, minimum wage hikes have the opponents as well, who claim that an undue burden is to be placed on businesses what would force employers to lay off workers or move.
Other cities have also moved to increase their minimum wages in a few years. The minimum wage is to increase to $15 an hour by 2018 in San Francisco, to $13 by 2019 in Chicago, to about $15 by 2019 in New York and to $15 an hour over the next two to six years, depending on the size of the business in Seattle.