L.A.'s latest wage stew

Don't expect the brouhaha over living wages at LAX-area hotels to end just because an appellate court upheld a city ordinance requiring hotel owners to pay the higher hourly rate ($9.39 an hour with benefits or $10.64 without). Hotel lobbyist Harvey Englander tells the LAT that his side is considering an appeal - or perhaps a referendum or initiative. You may recall that the hotel owners had gathered enough signatures to put the living wage plan on the ballot when the City Council made a few cosmetic changes to the original ordinance. Eventually, the whole mess landed in court (a Superior Court judge had struck down the ordinance). What’s worth mentioning is that the living wage movement is not gaining much traction in the U.S., with the exception of companies that do business directly with the government. That LAX is a government-run entity was the cynical rationalization to go after the nearby hotels.

Meanwhile, there's another pay story that's getting scant attention: California raising the minimum wage to $8 an hour, beginning next week. That's the second time the minimum has been raised in two years, and some restaurant owners say they'll have to raise menu prices. It's either that or taking home less money themselves. From the L.A. Business Journal:

Last month Rosemead-based Panda Restaurant Group Inc., which operates the Panda Express chain of fast-food Chinese restaurants, raised wages for some of its workers whose pay was just above the minimum. “To prepare for the second phase of the minimum-wage hike, we raised our base salary to $8.50 an hour three weeks ago,” said Gigi Cheung, executive director of compensation and benefits for the chain. Panda Restaurant Group did the same thing last year as part of its strategy to retain workers in an industry known for rapid turnover, Cheung said, adding that unlike some high-end restaurants, Panda Express has not raised prices to offset the wage hikes.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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