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Sacramento Business Groups Voice Opposition To A Minimum Wage Ordinance

  

The minimum wage ordinance before the Sacramento City Council appears to be in trouble. A business coalition sent Mayor Kevin Johnson a letter Monday stating its opposition to raising the city's minimum wage to $12.50 per hour.

Sacramento political consultant Doug Elmets says that puts the proposal on life support, since labor groups have already announced their opposition.

"Admittedly, it's rare that business and labor ever come together on any issue," says Elmets. "But on this one they seemed to be opposed. And so I think it's difficult to imagine it being very successful."

But Elmets says if anyone can negotiate an agreement, it's the mayor, who has won support for his elections and major initiatives from business and labor.

The sticking point appears to be a proposed "total compensation clause" that would allow tipped workers to earn less than the minimum wage. Labor groups and the California Legislature's lawyers say it could be illegal, but business groups won't support the increase without it.