The Los Angeles City Council tentatively voted to increase the city’s minimum wage to $15 an hour by 2020. The business community opposed the move. How business will react is unclear but there was much discussion during the debate over the issue about lost jobs and eyeing more friendly business locations.
The wage increase is to be phased in over time so the immediate impact may not be felt. Businesses ought to keep score when the effects hit so officials will be cognizant of the consequences. By no means cheerleading for negative effects here, but if the wage increase doesn’t cause economic disruptions and it appears business’s challenge to the dramatic increase in the minimum wage is just an exercise in rhetoric, the business communities credibility will suffer.