3 more cities raise minimum wage

money pile

Three more cities voted this week to raise their minimum wages, nudging the nationwide pay floor closer to $15 an hour.

Residents of San Diego voted overwhelmingly on Tuesday to raise the city’s minimum wage immediately to $10.50 and to $11.50 on Jan. 1. 

The approved ballot initiative also calls for automatic adjustments indexed to the rate of inflation starting in 2019. The provision introduces the possibility that the city’s pay floor could be pushed above the $15 that will become California’s minimum wage in 2022.

The San Diego ballot measure, approved by almost two-thirds of voters, also guarantees employees five days of paid sick leave per year.

Miami Beach, Fla., set its new wage target at $13.31 an hour, effective 2021. To get there, restaurateurs and other employees will be required to pay $2.26 more than the current hourly minimum of $8.05 per hour as of Jan. 1, 2018, or $10.31. The minimum wage will then increase by a dollar for each of the next three years.

The District of Columbia set the so-called living wage as the legal level for Washington, but gave employers in the nation’s capital about three and a half years to get there.  Of key importance to restaurateurs was a compromise that prompted lawmakers to keep a tip credit for servers but raise it to $5 an hour from the current level of $2.77.

The cities join a fast-growing list of jurisdictions that are raising the minimum wage and requiring employers to provide paid time off when an employee is sick.

California and New York have already set $15 as their new minimum wages, but are phasing in that new threshold over several years. New York gave its law the twist of calling for a review after several years to see how the stepped increases have affected the economy.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners