Minimum Wage in Glendale

As any business owner knows, minimum wage went up again on July 1. There are future scheduled increases in place by both the State of California and the County of Los Angeles. But what you might not know is which plan you need to follow. If you live in the geographic area of the City of Glendale, you are following the state phase-in plan. If you live in the unincorporated part of the Montrose-La Crescenta area, you are following the County of Los Angeles phase-in plan. And yes, parts of Montrose are located in the unincorporated area of La Crescenta. To know where your business is, please contact the Chamber office or the City of Glendale Community Development Dept. at (818) 548-2140.

So what is the difference? How much you are required to pay? Why does it matter? One phase-in plan is much higher than the other. Let’s first talk about the minimum wage fees for businesses in the City of Glendale.

Glendale is following the State of California’s fee schedule, not that of the County of Los Angeles. As of July 1, the minimum hourly wage for businesses in Glendale with 25 or fewer employees is $10. For businesses in Glendale with 26 or more employees, the minimum hourly wage is $10.50. Now let’s compare that to the County of Los Angeles’ minimum wage.

In LA County, the minimum hourly wage for businesses with 25 or fewer employees is $10.50. For businesses with 26 or more employees the minimum hourly wage is $12. According to the website www.facesof15.com, raising the minimum hourly wage has real consequences for businesses and employees.

“Unions and activists say the costs of minimum wage hikes are negligible. But the real faces of $15 – and of other dramatic hikes in the minimum wage – are the employers who struggle to offset those costs. As these stories show, their actions often mean fewer opportunities for the employees these laws are meant to help.”

For more information, log onto www.facesof15.com.

There are hundreds of videos showing various types of small businesses closing their doors due to the minimum wage increases. You will also find more information by logging onto www.minimumwage.com. There you will find research articles and information regarding the effects of minimum wage on the economy as a whole conducted by the Employment Policies Institute, which is dedicated to studying public policy issues surrounding employment growth and focuses on issues that affect entry-level employment.

A new survey conducted by the University of New Hampshire Survey Center asked economists about their reactions to a $15 minimum hourly wage. It finds that 72% of U.S.-based economists oppose a $15 federal minimum wage. At the Economics Policy Institute website, epi.org, you will also find more surveys and studies on the impact of new labor costs on job creation.

Proponents say that boosting the minimum wage will reduce poverty without reducing jobs. But the academic evidence paints a very different picture: According to economists at the Federal Reserve Board and the University of California, Irvine, the majority of empirical research shows that a higher minimum wage reduces employment for the least-skilled while having little to no effect on poverty rates. This is supported by research from economists from the American and Cornell Universities who studied the 28 states that raised their minimum wages between 2003 and 2007 and found no associated reduction in poverty.

Keep yourself informed. For small business owners, just remember: your minimum wage is $10 or $10.50, not $12 or $15. Please call the Chamber office if you need more detailed information.

Montrose-Verdugo City Chamber of Commerce: Your source for all things local! Our mission is to actively support and enrich the community, vitality and pride of Montrose, to help preserve the historic district and small town atmosphere, to promote economic stability and positive, productive relationships within Montrose and the surrounding communities.
Upcoming events

August anniversary business mixer on Wednesday, Aug. 2 from 6 p.m. to 8 p.m. at the Arthur Murray Montrose Dance Studio, 2260 Honolulu Ave.

40th Anniversary Oktoberfest on Saturday, Oct. 7 from noon to 11 p.m. in the 2200, 2300 and 2400 blocks of Honolulu Avenue. Admission is free.

  melinda clarke