Los Altos became the first city to approve a $15 minimum wage by 2019 proposal on Sept. 13, which was endorsed in June by the Cities Association of Santa Clara County.
Cupertino will vote on its $15 by 2019 ordinance on Tuesday, and Palo Alto is scheduled to take up the issue on Sept. 27. Sunnyvale and Mountain View have already passed $15 by 2018 minimum wage ordinances.
The 2019 schedule is more aggressive than the statewide timetable signed by Gov. Jerry Brown in April, which calls for the bottom wage to reach $15 by 2022 for large businesses, and by 2023 for companies with less than 26 workers. The current state wage is $10 an hour.
Minimum wage is a gift to landlords. .of course cities that mandate high min wages will also probably mandate rent control…If rent control comes to South Lake Tahoe I will sell and 1031 to Nevada…
$12/hr statewide by 2019…I figure that will drive low end rents up 20%…That will drive my cap rates up even higher…
The entire state of California will be rent controlled by 2030.
$15 min wage is not gonna push up rent in the prime Bay Area I think. It’s already way up high. Away from Bay Area $15/hr will have a huge impact, in places like Stockton and Sacramento.
That is why I am buying rental properties in the exburbs…Rents in prime BA locations have peaked…But 43% of the state are making $15/h or less and they cant afford to buy…therefore rents will go up…All min wage does is cause inflation, especially for essentials like rent and food, which is what the economy needs now…
My friend had his dog walker fire him as a client. They wanted a 5 day a week commitment. He did the math and realized the dog walker is making $100-120k/yr. The walker is now hiring people to work for them and walk dogs to grow the business.
I bet the retail & restaurants on the peninsula are under a lot of pressure to raise wages regardless of the law. It must be near impossible to find help for sub $20/hr.
When Seattle officials voted three years ago to incrementally boost the city’s minimum wage up to $15 an hour, they’d hoped to improve the lives of low-income workers. Yet according to a major new study that could force economists to reassess past research on the issue, the hike has had the opposite effect.
I have two observations living where minimum wage is $15/hr.
Restaurant service is worse
Many restaurants are forcing 18% gratuity and using it to pay part of the $15/hr minimum wage. I’m not sure it actually leads to service staff making more money.
No kidding. That’s because most low-wage workers are dependent on government programs. People know they have to make under a certain threshold to maintain eligibility for government benefits. If they make more per hour, then they can work less hours. Going above the threshold is disastrous thanks to the welfare cliff. It’s how people end up dependent on staying low-income to get government benefits. It makes zero sense to go from $25k/yr to $35k/yr. The loss of benefits is much greater than the extra $10k/yr in income. It’d take going from $25k/yr to $70k/yr to have the same standard of living. The design of these programs is idiotic.
This morning I got a call from a friend of mine I haven’t seen or heard since 1984. After a long hour of getting to know each other again, the invitation came: Come here, you will get badly $16 an hour to start. He pays $500 a year in property taxes. Everything is cheap over there he said. He lives in Iowa.