Minimum wage will increase to $16.11 in Pasadena starting next month – Pasadena Now
Local minimum wage earners will see their wages increase by more than $1 an hour starting July 1, when wages rise to $16.11.
The Pasadena City Council passed a minimum wage ordinance on March 14, 2016. The wage increased on July 1, 2016 to $10.50 and increased by $1.25 annually on July 1 until it reaches $15 in 2020.
“Pasadena passed its own minimum wage ordinance in 2016 with strong support from various community and labor groups, as well as low-wage and immigrant community members,” said Lisa Derderian, public information officer. “This most recent increase from $15.00 to $16.11 per hour was based on the Consumer Price Index as compiled by the Bureau of Labor Statistics for all urban consumers in the statistical area Consolidated metropolitan area of Los Angeles/Long Beach/Riverside. Future changes to Pasadena’s minimum wage will occur in the same manner each July 1 and will also be indexed to the Consumer Price Index.
The CPI measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
Inflation has hit local businesses and consumers.
Minimum wage is the starting hourly wage that an employer can pay an employee for a job. President Franklin Delano Roosevelt declared the minimum wage a living wage when the law was passed in 1933.
But the salary is no longer a living wage that can cover the high cost of rent, which has reached $3,000 in some Pasadena apartments. Meanwhile, gasoline prices continue to soar.
Businesses with 25 or fewer employees and qualifying nonprofits have an additional year to comply with the sequential wage increases.
“It’s (raising the minimum wage) a very, very, very important concern. So, on average per week, we do about 1,100 hours of payroll. This does not count the management, which is salaried. So you increase that by one dollar and 11 cents. And you’re talking about adding an extra $1,300 a week to salary costs,” Green Street restaurant owner Michael Hawkins said in a recent interview with Pasadena Now.
Small businesses, especially restaurant owners, continue to struggle to recover after being shuttered for nearly a year due to the COVID-19 pandemic and some people believe rising costs could lead to layoffs.
“I think we need to be fair and equal with our employees and stay on top of what surrounding areas are paying,” restaurant owner Gale Kohl said.
“I have no doubt that we will see many smaller organizations closing due to the unsustainable compensation benchmarks we are setting.”
According to Kohl, the impact on wages will have consequences in supermarkets, restaurants and retail stores.
“This is going to make it even harder for low-income families to live and thrive in Pasadena and Los Angeles County. Ultimately, the extra dollar people see on their paychecks will not be realized. »
During the lockdown, local activists staged a rally amid fears the city council would pause the $15 hike.
Former restaurateur Robin Salzer said there should be a pause to allow business owners to get back on their feet.
“Now is not the time to even consider raising the minimum wage,” he said. “With gasoline prices at an all-time high, with many businesses closed and storefronts with sale or rental signs and with many businesses large and small operating on fewer hours due to the understaffed, now is the worst time to add another nail in the coffin of corporate sustainability.
According to Salzer, the cost of operations will increase and businesses will be forced to operate with fewer staff, leading to an even higher unemployment rate than currently straddles our country.
“The majority of businesses in Pasadena are slowly recovering from the pandemic. Let them become solvent again before raising the minimum wage.
Despite these factors, local Chamber of Commerce CEO Paul Little said he believed the increase would continue.
“I expect the city council to raise the minimum wage,” Chamber of Commerce CEO Paul Little said. “The increase will be one more burden on local small businesses after two years of crushing economy.”