Creating new burdens on businesses at the beginning of a recession doesn’t make sense.
Measure S in Laguna Beach on the Nov. 8 ballot would increase the minimum wage for hotel employees to $18 per hour. Starting in 2027, the wage would be increased further based on the consumer price index of the Los Angeles-Riverside-Orange County metropolitan area – which could be a hefty amount if today’s 8.3 percent annual inflation continues. And the measure would establish new “workplace standards” for employees.
In their ballot arguments, proponents argue inflation means hotel worker wages ought to rise. True enough, but they already do. The California minimum wage will rise to $15.50 an hour on Jan. 1.
Related: Measure S in Laguna Beach considers city law for $18 an hour pay for hotel workers
And California Labor Code section 1182.12 mandates future yearly adjustments based on “the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers.”
We also see all over Orange County fast-food restaurants and other establishments hanging out signs reading, “Help Wanted. Starting at $17.” As to workplace standards, California already closely regulates labor conditions in all industries, especially hospitality.
Higher costs do have consequences. Voters should think how they use online apps to find a hotel or motel, based on the cost. If Laguna Beach raised the cost to tourists, those tourists will look for cheaper lodgings in neighboring cities. Bookings will drop and hotel workers will be laid off, or transfer to hotels in other cities. Laguna Beach will lose tax revenues.
The Register reported Measure S is “sponsored by Unite Here Local 11.” According to the website of the Los Angeles-based union, it “represents over 32,000 workers employed in hotels, restaurants, airports, sports arenas, and convention centers throughout Southern California and Arizona.”
No wonder Measure S also stipulates the minimum-wage requirement “may be waived pursuant to a bona fide collective bargaining agreement” with a union. That is, Measure S really is just a union power grab.
With inflation worsening and a recession digging in, companies do not need regulations that increase their costs. Nor should they be victim to power-hungry unions abusing the initiative process for their own ends.
Voters should dump Measure S in the Pacific Ocean. Vote No.
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