Neighbor Cities May Also Pay for L.A. Wage Hike

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Soon after proposing a minimum-wage hike last year, Los Angeles Mayor Eric Garcetti asked mayors in neighboring cities to do likewise. And now that L.A.’s wage hike is nearly a done deal, some municipalities might be ready to follow along, though business leaders hope other cities won’t simply rubber-stamp what’s been approved in Los Angeles.

In West Hollywood, which is nearly surrounded by Los Angeles, Mayor Lindsey Horvath said the city has already commissioned a study of how a wage increase would affect the city. She’s in favor of a more expansive wage hike – and perhaps one that goes even further than L.A.’s.

“I expect, as has been our tradition in the city of West Hollywood, that we will follow suit,” Horvath said. “I am only one member of a five-person council, but I’d like to see West Hollywood see a minimum-wage hike sooner than 2020.”

Horvath said constituents in her famously progressive city are already pushing her to act.

“I’ve been asked why we have not taken action sooner,” she said.

Horvath knows there might be push-back from local businesses, which is why the city is making an effort to include business owners in the discussion should a plan go forward.

Leaders in Santa Monica started contemplating a wage hike of their own soon after minimum-wage talks started in Los Angeles, but said they wanted to wait and see how L.A.’s legislation rolled out. Now, it seems like city officials will have to take a second look.

While most business groups in Los Angeles were against the city’s proposed wage hike from the start, the Santa Monica Chamber of Commerce has yet to take a position on a potential increase there. But Laurel Rosen, the chamber’s chief executive, cautioned that any discussion should be done thoughtfully and that city leaders shouldn’t simply copy what’s coming to Los Angeles.

“Santa Monica is home to businesses of all sizes – from mom-and-pop restaurants to international tourist attractions to tech startups,” she said. “A rushed, one-size-fits-all approach may not take into account the diversity of needs and challenges facing these businesses.”

But even without a plan to raise the minimum wage in those and other cities, businesses in some spots near the L.A. city limits might find that they have to raise pay on their own to keep and attract good workers.

Jeffery Bobrosky, partner at professional services firm CohnReznick’s Century City office, said he’s interested to see how businesses that are just outside of Los Angeles will handle the city’s wage hike.

“If they’re in close proximity to Los Angeles city, a server could work a mile away crossing the boundary to make more money,” he said.

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