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March 25, 2015

L.A. Lawmakers Aim to Slow Minimum-Wage Hike for Nonprofits

As Los Angeles leaders weigh a sharp increase in the minimum wage, some City Council members are calling for nonprofits to be given additional time to implement the proposed hike, the Los Angeles Times reports. Proponents of the delay warn that organizations that rely on government repayments to support their work might have trouble meeting the requirements of the proposal, backed by Mayor Eric Garcetti, to raise the wage floor citywide to $13.25 an hour by 2017.

Their plan, which would also cover small businesses, would slow down the increase at organizations with relatively limited “wage disparity,” where the top earner is paid no more than 10 times as much as the lowest-paid worker. The potential impact on nonprofits and small firms came up repeatedly at a City Hall hearing on the wage plan, one of several the council is holding.

The president of a Los Angeles clinic network argues in a Los Angeles Daily News  opinion piece that the higher minimum wage will benefit nonprofits. Jim Mangia says raising minimum pay at the St. John's Well Child and Family Center to $15 an hour last year has also meant a boost in the level of care we can provide to the community. By investing in our workforce, we have been able to recruit and retain the best talent, and productivity is at an all-time high.”