Minimum Wage in L.A.

Los Angeles raised its minimum wage to $15 an hour.  The reverberations will be big.  Other cities will follow to remain competitive in the job market and keep talent that might otherwise go to cities where they get paid more for the same work.

The National Restaurant Association (NRA) has been outspoken in its lobbying and P.R. to quash any rise in income for restaurant employees.  Arguing that this will cause an increase in prices charged to customers, decreased hiring, and a slow down of expansion, the NRA has been very effective in convincing legislators to oppose wage increases.

But it looks like the move by L.A. is a watershed moment.  Wages won’t be rolled back, and with the obvious benefits to both employee and community, restaurants that want to survive in a free market system will come up with business plans that take the wage increase into account.

Workers who get paid more are generally more productive, express greater job satisfaction, can try to save for the future, can try to afford to get better housing, and pay more state and federal taxes.  Greater productivity leads to higher profits for the restaurant owner.

You want employees who want to come to work.  Those that do, work harder, and make more money for their employer.

 

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