Elsewhere online
April 09, 2015

L.A. Move to Hike Minimum Wage Raises Fears for Nonprofits

A Los Angeles proposal that could raise the city's minimum wage by up to 69 percent is sparking concerns among social-service providers that it would price them out of labor market, the Los Angeles Times writes. Mayor Eric Garcetti is backing a plan to incrementally increase the wage from the state minimum of $9 an hour to $13.25 by 2017, and some city-council members are calling for a further hike to $15.25 by 2019.

While they say they back the intent of the wage plan, groups such as Chrysalis, which provides transitional employment to formerly homeless people and ex-convicts, say it would force them to curtail hiring unless the governments that contract with them provide extra money to offset higher labor costs. Some city-council members have proposed slowing the timetable for nonprofits to meet the new minimum or allowing them to pay lower wages to workers designated as trainees. The California Association of Nonprofits says its membership generally supports the increase.