By: Dr. Lynn Reaser
San Diego Mayor Kevin Faulconer vetoed the City Council’s proposal to boost the minimum wage from its current $9.00 an hour to $11.50 by January 1, 2017. With the Council almost certain to override the veto, the business community is considering mounting a referendum to halt the legislation from taking effect.
The proposed hike would
put many of our businesses at a significant competitive disadvantage. The San Diego measure would produce a 44% rise in the wage floor in just 2-1/2 years. The statewide minimum wage went from $8.00 to $9.00 on July 1 and would move up in the City of San Diego another $2.50 by January 1, 2017.
This increase would undoubtedly weigh on the profitability, if not viability, of many firms. A faster rise than the state would also put San Diego’s minimum wage 8% above that of its neighbors as of next January 1.
San Diego was recently ranked as 78 out of 82 cities in its friendliness to small business. Let’s not make the situation worse.
Image Credit: nbcsandiego.com