The Pasadena City Council on Monday formally approved an ordinance that will gradually raise the minimum wage to $13.25 per hour by 2018.
The 7-0 vote came after the council initially approved raising the minimum wage at the beginning of February.
The ordinance, proposed by Councilman Victor Gordo, outlines incremental increases to the minimum wage starting at $10.50 on July 1, 2016 and increasing to $13.25 in July 2018.
“Unfortunately over time, while revenues have gone up for these businesses and while property values have increased dramatically for property owners, wages of workers have not kept pace,” Gordo said.
In 2019, the city manager has to report to the council on the impact of raising the minimum wage when it comes to reducing poverty, unemployment, job creation and the overall business climate, the ordinance states. Then the council will evaluate whether to increase it further — to $15 by 2020.
Gordo chairs the council’s Economic Development and Technology Committee, which held town halls to get feedback from workers, business owners and experts on the minimum wage issue. Gordo said there were concerns about raising the minimum wage and that the council has proceeded with caution.
“I believe this ordinance strikes the correct balance between doing the right thing for workers and people who are attempting to provide for their families in Pasadena, and balances that with the needs of businesses and a very delicate retail and entertainment industry in Pasadena,” Gordo said.
The ordinance was passed during a time where minimum wage is a hot-button national and state issue. Gordo said that, in the absence of action at the federal or state level, the city intervened.
"In this case the federal and state government have failed to act, and failed to take steps that we believe are needed," Gordo said.
Read the entire ordinance here:
This story has been updated.