L.A. lawmakers seek study on possible minimum wage hikes

A committee of Los Angeles lawmakers decided Tuesday to seek outside help in analyzing the possible effects of raising the minimum wage to $13.25 or $15.25.

Mayor Eric Garcetti has recommended gradually raising the wage to reach $13.25 in 2017, then tying future annual increases to inflation. Several City Council members want to go further: Earlier this month, they proposed a study on how to raise the wage to $15.25 by 2019.

At a Tuesday hearing, the idea of boosting the minimum wage was cheered by many workers and business owners, who said it could help lift families out of poverty and spur local spending. But the plan -- either at $13.25 or $15.25 -- has also stirred up concerns that small businesses and nonprofit groups might struggle to increase paychecks.

To address those concerns, a council committee decided Tuesday to seek outside proposals for an independent study that would examine the possible effects of boosting the wage to either level, as well as the tradeoffs of exempting or loosening the rules for small businesses or nonprofit groups.

“There is a need to increase the minimum wage,” said Councilman Paul Krekorian. “I don’t think that the issue is whether or not to do that. The issue is how we best do it.”

The new study would also analyze the idea of putting a cap on automatic increases to the minimum wage, how wage increases might affect workers’ benefits and hours, and the potential effect on tax revenues, among other topics. It would be due in February, Councilman Curren Price said.

Councilmen Mitch O’Farrell and Bob Blumenfield had proposed doing a study that covered many of those topics, suggesting that wage increases could be phased in more slowly for small businesses. In a letter to the committee, Councilman Mike Bonin -- a firm backer of the wage increase -- stressed that any study should include the positive effects of wage increases along with negative ones.

Garcetti previously commissioned a study from UC Berkeley on the possible effects of increasing wages to $13.25, which he unveiled along with his proposal earlier this year. That study found that the effect on overall employment was “ not likely to be significant.”

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