Minimum wage going up in many SoCal cities this weekend

LOS ANGELES (KABC) -- Many Southern California workers are getting a pay raise this weekend, as the legal minimum wage is increasing in Los Angeles and some other local cities.

The current minimum wage of $10.50 will increase to $12 an hour in Los Angeles, Pasadena, Malibu, Santa Monica and in unincorporated LA County communities.

The change is part of an eventual hike to reach $15 an hour by 2020.

The change applies to businesses with 26 or more employees.

For those with 25 or fewer employees, the minimum wage goes from $10 to $10.50.

Kenn Phillips with the Valley Economic Alliance says an increase may sound good to workers, but it could negatively impact some of them.

He says a study that tracked Seattle's minimum wage increase shows businesses compensated to make up for the increased costs.

"What they did was they contracted and part of the contraction was giving employees 9 percent less hours of work to make up the difference in the fees," Phillips said.

Robert MacMurray, owner of Robbie Mac Pizza, said he may have to make some adjustments to his business after costs go up, but he thinks the increase is deserved.

"I think it's fair," he said. "It's very expensive - housing and food and everything goes up every year, so it needs to happen."
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