Posted on: Saturday, July 28, 2001

California city law on 'living wage' spurs debate

Associated Press

SANTA MONICA, Calif. — This wealthy seaside community has become the first U.S. city to require private employers to pay a "living wage."

After several years of debate, the city this week adopted an ordinance that will require the city and its contractors, plus businesses in the downtown and beach areas, to pay workers $12.25 an hour, or $10.50 an hour if they provide health benefits. The state's minimum wage is $6.25 an hour.

The ordinance, adopted 5-2 by the Santa Monica City Council, takes effect next July. The battle now moves to the streets as a coalition of business groups tries to overturn the ordinance by placing it on the November ballot.

Although a number of municipalities across the country have adopted similar ordinances covering city workers and employees of private companies that have government contracts, Santa Monica is the first to extend the requirement to private businesses.

The law affects hotels, restaurants, stores and other businesses that have at least $5 million in annual revenue and are in a certain area.

Opponents say it will force some businesses to close or to lay off the workers the measure is supposed to help.

"Many of the businesses that will be swept up in this, restaurants particularly, are not going to simply increase their wages and stay in business," said Tom Larmore, a lawyer.

Opponents of the ordinance started a petition drive to collect the 5,700 signatures needed to force a referendum, while supporters have launched a campaign of their own to persuade residents not to sign.

"Clearly there's very strong public support for the idea of living wages in Santa Monica," said Danny Feingold, a spokesman for the group fighting repeal. "We know the voters believe janitors and dishwashers and housekeepers should make enough to live on."