Controversy looms over the City of Los Angeles as Mayor Eric Garcetti signed into law the new minimum wage measure. This measure increases the current minimum wage, of $9/hour to $15/hour by 2020. This will be done incrementally over the next 5 years, starting with an increase to $10.50/hour in July 2016. The only exemption is that if you are a business with less than 26 employees, you have an extra year to comply. For many businesses this is terrifying because their labor costs will increase by 66% in 5 years, which could potentially put many out of work and force many businesses to close.

So where is the discussion on this matter? Many industries feel like they have been overlooked when discussing the effects of the minimum wage - a strong example being the restaurant industry. Restaurants usually have an average labor percentage of their costs between 30% to sometimes 45%, and a profit margin of only 2% to 5% - sometimes less. Labor costs aren't the only thing that will increase though - restaurants will also see their food costs increase, as their distributors will have to adhere to the new law as well. So how do industries like this one get heard? Public discussion. 

On July 7, 2015, AirTalk 30 provided a forum for restaurants and other organizations to have a conversation about the minimum wage at the El Portal Theatre. Panelists included Councilmember Paul Krekorian, Tracy Rafter, CEO of the Los Angeles County Business Federation, George Abou-Daoud, founder of the LA Neighborhood Restaurant Coalition and owner of Bowery Street Enterprises; and more. 

Abou-Daoud advised that, although multiple studies were done analyzing the effects of the minimum wage, you need to take into account that 1) The test cities of the studies were San Francisco and Seattle, which both have incredibly different economies then Los Angeles, and 2) You need to look at who paid for the studies - if studies are paid for by people who want it to reflect it in their favor, then the studies will most likely do so. He also noted that restaurants are in favor of a minimum wage increase, they just believe this particular one is too much, too soon. 

Councilmember Krekorian insisted that he and other councilmembers understand that restaurants, small manufacturing, and other related industries will really feel the heat from this measure - but do the costs of the current minimum wage outweigh the benefits of the new one? He believes they don't, but emphasized the importance of their role as policy-makers to create other policies that will help make LA more business-friendly, and to also help combat the negative externalities that will come from this new law. 
 

For more information about this discussion, the minimum wage, or other topics affecting businesses, call The Alliance at 818-379-7000 or [email protected]. To get involved, contact your local Chamber of Commerce, United Chambers of Commerce, VICA or BizFed. 

Photo from left: Larry Mantle (Host), Nicole Shehanian (VP Government Relations at Hollywood Chamber of Commerce), Councilmember Paul Krekorian (2nd District)

Children in the San Fernando Valley now have access to an enhanced level of pediatric care, under the terms of an innovative agreement between The Valley Economic Alliance investor Providence Tarzana Medical Center and Children's Hospital Los Angeles (CHLA) and its physicians.

There is no children's hospital in the vast area served by Providence Tarzana pediatrics - a region of nearly 3 million people that includes the San Fernando, Santa Clarita and Conejo valleys and Simi Valley and is roughly the population of Chicago.

Beginning July 1st, CHLA's renowned specialists will staff Providence Tarzana's Pediatrics Department inpatient unit as well as its pediatric and neonatal intensive care units - known as the PICU and NICU. Staff will be available 24 hours a day, allowing families' access to high-quality specialty care for their children, closer to home.

"Our new partnership is an important step forward that will bring a new level of quality care for our patients and their families," said Dale Surowitz, Providence Tarzana's chief executive. "This is a breakthrough in healthcare for the San Fernando Valley and adjacent communities, providing infants and children in-house specialist care round-the-clock."