Los Angeles City Council Gives Final Approval To $15 Minimum Wage

$15 Minimum Wage Is Coming To LA
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Minimum-wage workers in Los Angeles, the nation's second-largest city, are getting a pay raise.

In a 13-1 vote on Wednesday, Los Angeles County lawmakers approved an ordinance that would raise the current minimum wage from $9 an hour to $15 an hour by 2020. The vote makes LA the largest American city to raise its minimum wage to $15 an hour.

"This is nothing short of historic. Historic for our city. Historic for the economic equality movement. And historic for full-time workers and their families who live on poverty wages,

The increase would immediately affect only businesses with more than 25 employees. It will be rolled out in increments of about $1 an hour over five years. Businesses with 25 or fewer employers will have a one-year delay before having to increase wages. As CBS LA reports, the minimum wage will increase to $10.50 beginning in 2016. It will rise to $12 in 2017, $13.25 in 2018 and $14.25 in 2019. It peaks at $15 by 2020. Each wage increase becomes effective in July.

The bill, which received pending approval in May, still needs Mayor Eric Garcetti's signature. The Democratic mayor has previously said he would sign the wage hike.

“With this vote, the minimum wage will no longer be a poverty wage in Los Angeles,” Garcetti said last week. “I want to thank the City Council for joining me in building a city that provides greater opportunity and possibility for all of our residents.”

Opponents of the wage hike argued it would hurt smaller businesses, while others said it might prompt layoffs by pinched employers.

LA becomes the latest success for labor groups representing low-wage workers like fast food, retail and home service employees. San Francisco and Seattle have already raised their minimum wages to $15, while Chicago is moving to raise its workers' wages to $13 an hour.

The efforts are getting support from big-name Democrats, who hope to win workers' votes in 2016. On Sunday, Democratic presidential candidate Hillary Clinton surprised workers gathered in Detroit for convention centered around the Fight For 15 campaign with a phone call voicing her support.

Before You Go

What Minimum Wage Haters Won't Say
Most Americans Support Raising The Minimum Wage(01 of10)
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Seventy-three percent of Americans support raising the minimum wage to $10 per hour and indexing it to inflation, according to a recent poll. (credit:AP)
Raising The Minimum Wage Would Boost The Economy(02 of10)
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Low-wage workers spend more when the minimum wage is raised, according to a 2011 study by the Federal Reserve Bank of Chicago. This spending in turn boosts the economy and job growth, according to the Economic Policy Institute. (credit:AP)
Raising The Minimum Wage Does Not Hurt Employment(03 of10)
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A number ofstudies have found that raising the minimum wage does not reduce total employment by a meaningful amount. (credit:AP)
Having A Minimum Wage Has Kept More Teens In School(04 of10)
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The minimum wage has kept teens in high school longer by reducing the number of low-wage jobs available to them, according to one study. (credit:AP)
Prices Don't Always Rise In Response To Minimum Wage Increases(05 of10)
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Though Rep. Paul Ryan (R-Wis.) recently warned that raising the minimum wage would be "inflationary," prices apparently don't rise in response to minimum wage hikes. For example, fast food restaurants in Texas did not raise prices in response to federal minimum wage increases in 1990 and 1991, according to one study. (credit:Getty Images)
Letting The Minimum Wage Fall Could Increase Income Inequality(06 of10)
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The erosion of the minimum wage -- that is, the decline of its purchasing power as prices rise -- contributed to income inequality among poorer Americans in the 1980s, according to one study. (credit:Getty Images)
Worker Benefits Don't Get Cut In Response To Minimum Wage Increases(07 of10)
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Minimum wage increases did not lead to reduced worker benefits, according to two studies. (credit:Shutterstock)
Raising The Minimum Wage Does Not Shorten Workdays(08 of10)
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In New Jersey, employers did not cut their workers' hours in response to the state's 1992 minimum wage hike, according to one study. (credit:Getty Images)
Most Minimum-Wage Workers Are Adults(09 of10)
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Contrary to popular belief, 84 percent of minimum-wage workers are age 20 or older, according to the Economic Policy Institute. (credit:AP)
A Falling Minimum Wage Contributes To Obesity(10 of10)
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The erosion of the minimum wage has contributed to growth in U.S. obesity by making fast food cheaper and more popular, according to one study. Meanwhile, healthy food has become more expensive. (credit:Getty Images)