“This will be devastating to our business community…”–A letter to West Hollywood Chamber of Commerce members by Genevieve Morrill, WeHo Chamber President and CEO, responds to what they are calling “an unprecedented action last night by the City Council, as they were deliberating on the Hotel minimum wage ordinance, all five councilmembers voted to direct staff to instead come back on either November 1st or 15th council meeting with a revised ordinance creating a city-wide $17.64 minimum wage for all employees.”
A letter states that the new ordinance will including that all businesses provide compensated and uncompensated sick time. “The number of sick days for hotels are different from other industries. The amounts were designed to be in line with ordinances in Los Angeles and Santa Monica. The Council has asked staff to look at one rate so that it is not confusing, but this is yet to be determined.”
“Not only is this increase higher than anywhere else in the nation, the speed in which they wish to implement the ordinance, July 1, 2022, is only six months after the minimum wage increase on January 2022; this will be devastating to our business community,” the letter continues. “With this Council, we are seeing mind numbing actions that directly impact our costs of doing business and our ability to attract new unique small businesses to West Hollywood. Our politicians are ignorant as to what it takes to run a business, pay payroll, or commercial rents.
This is all on top of no outreach being conducted for broad sweeping policies and laws, such as the hotel housekeeping ordinance, which only allows an attendant to clean 3,500 square feet before the hotel has to pay double time for the entire shift, not just for the time spent over 3,500 (a law which the Union hotels are exempt from), closure of Robertson Blvd, a stricter law than the state on ban of plastics in food and beverage establishments, and now this mind blowing 20% to 35% increase to your payroll! And if you run a business you know it doesn’t stop at payroll and payroll taxes. When wages go up, liquor liability, workers comp, and salaries for salaried employees will go up too – plus many other increases depending on your sector. The commercial eviction moratorium was lifted leaving many with unpaid rents that must be reimbursed within six months to a year, AND we are STILL in a pandemic!
Why is Council in such a rush for this?
Back in April we had numerous meetings on a potential minimum wage increase. We were assured that we would be part of the conversation and that this would happen over time. Why did our city go back on their assurance? What this Council is doing will destroy our WeHo business community. They seem to want to copy everything the City of Santa Monica has done but that city has had many challenges lately due to overregulation of business and pandering to special interest groups who are funding our elected officials.
We need to hear from you; City Council needs to hear from you; the citizens of West Hollywood needs to hear from you! We need specifics on:
How this impacts your business.
What measures will you need to take to adjust for this increase?
How does this impact your other costs – insurance, etc.?
How will your prices be affected?
Please, let us know how we can help communicate this to our leadership. Write me or call me; thanks.