Surviving in Los Angeles on minimum wage can be a struggle, but a recent pay increase in the City of West Hollywood will ease the burden on its workers. LA Times staff writer Andrew Campa wrote that small business owners are feeling the pinch. Campa joined Lisa McRee on “LA Times Today” with perspectives from both sides of the coin.
As of July 1, West Hollywood has the highest minimum wage in the nation at $19.08. Campa explained that wage increases are not the only thing making business owners concerned.
“There is now paid time off for part-time workers, which is very rare. So you have a lot of these industries, particularly restaurants that are seasonal industries. They have workers for three months, for six months. Now when these employees leave, they’re entitled to vacation pay cash outs that regular full-time employees would have. So that’s been one of the big complaints [from business owners],” he explained.
For Lucian Tudor, the chief executive of La Boheme in West Hollywood, increased employee wages have hurt the restaurants’ bottom line. Campa explained Tudor’s position.
“They lost $100,000 in the first quarter because of these raises. He mentioned that they had a raise on Jan. 1 and now it’s an additional raise to $19. It affects all staff, those who are getting tips, those who are working in the back,” Campa said. “So he was telling me that he’d like to have a New York City-style business where tips are included into the minimum wage. Here he’s saying he has employees that make somewhere between $300-400 a night on tips who are also getting a minimum wage increase, but he’s not sure that’s fair.”
However, workers whose wages increased are grateful for the higher rate. Campa spoke with one worker who was able to afford air conditioning for his family after his raise, greatly improving their lives.
Campa explained that the higher minimum wage still wouldn’t cover rent in West Hollywood.
“You just need to make significantly more. When you’re talking $3,000 rents, that $19.08 an hour just doesn’t cut it. So it’s difficult because people want to live in the city they work, but then half of the business owners I spoke to don’t even live in the city of West Hollywood themselves. So it’s problematic for both sides,” he said.
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