LA judge delays living wage law enactment after hotels' challenge

AP via SFGate ^ | 3/1/7

[SmithL]

Los Angeles (AP) -- A Superior Court judge blocked a new law extending the city's "living wage" law to workers at airport-area hotels from taking effect until May at the earliest.

Wednesday's ruling came in response to a challenge filed by seven of the 12 hotels that would be required to pay all workers $10.64 an hour including health benefits under a law signed by Mayor Antonio Villaraigosa.

[DJtex]

This do-gooder crap just results in higher unemployment. It's a terrible misuse of government power.

[Publius6961]

"An attorney for the hotels, Paul Gough, argued that the City Council violated the rights of citizens who signed a petition against an earlier ordinance to raise the workers' raises.
The Council dropped that ordinance when the petition gathered enough signatures to qualify for the ballot and replaced it with the one now being challenged in court."

I am really puzzled now.
Why did the voters elect this clown?
Why have they not started a recall petition?

That is monumental arrogance, on the bureaucracy's part.

Banana Republic tactics on our home soil.

[SixIron]

You are absolutely right- one of the hotels already made a statement by laying people off.

[DonaldC]

"This do-gooder crap just results in higher unemployment. It's a terrible misuse of government power."

The same thing was said here in Colorado after the minimum wage was increased, and so far nothing has happened. Not trying to be confrontational, but I have read something like this often and am curious, what study/statistics support this claim?

[Lurker]

See post 4.

L

[vikingd00d]

>> but I have read something like this often and am curious, what study/statistics support this claim?

The USSR, North Korea, Zimbabwe... etc. Do you need more examples?

[Republicus2001]

$10.64 and hour? that's an outrage! They clean our toilets!

It should be at least $153.56 per hour!

Racists!

Bushfault!

[loboinok]

http://www.cato.org/pubs/regulation/reg18n1c.html

http://www.house.gov/jec/cost-gov/regs/minimum/50years.htm

http://www.heritage.org/Research/Economy/wm676.cfm

http://www.ncpa.org/hotlines/min/pd011400f.html

[Republicus2001]

gotta keep 'em down on the farm

[Republicus2001]

so they lay them off and instead of 10 people cleaning 100 rooms there will be 8. Either the room cost goes up or they don't bother to change the sheets.

[Domicile of Doom]

Forcing an employer to pay more will effect how much money he has leftover to pay his employees therefore some will be let go to make the minimum wage. The money demand changes but the money supply does not. The only way to offset this is to raise prices, which is the last thing any business wants to be forced to do, because that will drive customers to another more cheaply priced competitor. Unless of course they have all been forced to raise their wages, then businesses fail or move, leaving behind no jobs and a worse economy for the region. And yes there have been thousands of studies done to support this idea. It is basic economics.

[Jubal Harshaw]

One of the most-cited, argued about, and generally relevant studies of the effect of minimum wage increases in the US is:
"Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania" by Card, David
Krueger, Alan, American Economic Review, Volume (Year): 84 (1994), Issue (Month): 4 (September), Pages: 772-93. Abstract at:

http://ideas.repec.org/a/aea/aecrev/v84y1994i4p772-93.html

That study purports to show that minimum wage rises INCREASED employment.



A re-evaluation of the study data, and a rebuttal to the conclusions is:

"The Effect of New Jersey's Minimum Wage Increase on Fast-Food Employ- ment: A Re-Evaluation Using Payroll Records" by David Neumark and William Wascher. Abstract is here:

http://ideas.repec.org/p/nbr/nberwo/5224.html#abstract


Both articles study employment in Western NJ and across the border in Eastern PA at a time when NJ increased its minimum wage and PA did not. These areas are right across the state line from each other. In short, using subjective measurements (what employers said they were going to do when the minimum wage increased, Card and Kreuger found that an increase in the minimum wage let to an increase in employment. Using objective measurements (actual payroll numbers), Neumark and Wascher found that an increase in the minimum wage led to a decrease in employment. You pays your money and you takes your choice.

[DonaldC]

Thanks for the link. :)

[ridesthemiles]

Why did the voters elect this clown?"

This was Los Angeles.
No telling how many illegal intruders got to vote when they shouldn't have been even near the polls.

This Mayor has his sights on being Governor of Kalifornia.

White: Move while you can.

[ridesthemiles]

That study purports to show that minimum wage rises INCREASED employment.
"

As a life-long bookkeeper for small businesses, I can only say that in order to show an INCREASE in employment, the full time workers got shuffled to part time, and more part timers were hired.
That way, there are no benefits paid because the minimum hours for benefits are not met. The overall hourly wages basically remain the same. Employer saves the cost of benefits. Turnover would add to the loss of benefits, as no one stays long enough to qualify.

[GOP Poet]

I am in LA and I did not vote for this commie. Sickening. He is just an extreme liberal Spanish speaking commie. Sorry if this offends anyone, but it is just the truth. We have to get this YAHOO out of that office. The extreme liberal city council is enough, but to have no restraint coming out of the Mayoral office is just Cuba, China, Mexico . . . I refuse to see this city become the new San Fran.

[GOP Poet]

All the hotels should also get together and fire a huge percentage of their staff in addition to the legal proceedings. Make a clear statement . . . you want more money and benefits? Well then go find yourself a new job. That will provide the fiscal balance that will be jeopardized by the new wage and benefit payouts as well as loss of revenue from not having enough staff to provide services which will impact how much revenue a business can take in.

[newzjunkey]

Temporary SANITY from a court. Amazing.

[newzjunkey]

We have to get this YAHOO out of that office.

We will. Unfortunately he'll get out in 2010 when he becomes governor.