Minimum Wage Knocks on Culver City’s Door

Ari L. NoonanNewsLeave a Comment

Photo: Kirotv.com

How soon should business owners, especially restaurateurs, expect the new minimum wage almost-law in Los Angeles to spill into Culver City? the president/CEO of the Chamber of Commerce was asked this morning.

“Being a believer in the free enterprise system,” said Steve Rose, “and with Culver City being somewhere under five square miles, the economic impact is going to hit us as soon as the L.A. ordinance takes effect.”

That would be July 1, 2016.

“Our employers are going to be competitive to retain good employees.

“But I am sure members of the City Council want to make a cordial statement and want the city to get into labor law and minimum wage enforcement.”

When the new $15 minimum wage law takes hold in 13 months, there will be conundrums.

Here is one.

“You are going to find minimum wage will raise the people at the bottom of the economic scale,” Mr. Rose said.

“But inflation is going to take away any economic gains from those employees.”

Does that make the minimum wage law a wash or a loss?

Mr. Rose halted, stumped.

“That is a flip of the coin,” he decided.

“Let me give an example. If  a local car wash has 30 employees and they all are at minimum wage, and in five years there is a $5 increase, that is $150 an hour plus other costs, the car wash owner must raise prices.

“If a car wash does 25 cars an hour, which is a lot, it would raise the cost of a car wash by $5.”

Next came a sharp jab in the ribs of certain politicians.

“Elected officials do not necessarily understand trickle-up economics.”

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