On Labor Day, September 1, 2014, Los Angeles Mayor Eric Garcetti proposed the gradual increase of the city’s minimum wage from the current $9 to the $13.25 per hour over the course of the next three years.
The Mayor argued that raising the minimum wage to $13.25 by 2017 would bring approximately 567,000 workers in the city out from under the poverty line. The plan provides for raising the city’s minimum wage to $10.25 by 2015, $11.75 in 2016 and $13.25 in 2017. Following that, the minimum wage would increase with the Consumer Price Index, a measure of inflation. Tips and service charges would not be included in the minimum-wage calculation.
The measure is presently being considered by the Los Angeles City Council and, if approved, would make Los Angeles the latest city to jump aboard the higher minimum wage bandwagon in municipalities across the country. Similar efforts are already underway in Seattle, Washington and San Francisco, California. California state minimum wage rose to $9 this past July and will rise to $10 on January 1, 2016. The state Assembly is also considering a proposal that would raise the minimum wage to $13 in 2017, after the proposal was approved by the California Senate this past May.
Chicago Mayor Rahm Emanuel signed an Executive Order raising minimum wage to $13 per hour for employees of city contractors. By contrast, the federal minimum wage has remained stagnant at $7.25 an hour since 2009 - President Obama’s efforts to raise it have fallen flat. This February, however, President Obama did successfully sign an Executive Order raising the minimum wage for federal contractors to $10.10 for contracts solicited on or after January 1, 2015