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Monrovia Assembly Member: Reimburse Disability Service Businesses For Higher Local Minimum Wages

Assembly member Chris Holden, who represents Monrovia, has introduced legislation (AB 2623) to increase state reimbursement to developmental disabilities service providers so they can meet local minimum wage laws when those laws require a higher minimum wage than the state minimum wage.

"Time is running out," said Assemblymember Chris Holden. "Without an increase to reimbursement rates to meet local mandates, many developmental disability service providers may have to shut their doors, leading to a shortage of services available to people with disabilities throughout our state."

A Holden press release reports the bill was approved unanimously with bipartisan support in the Assembly Committee for Human Services.

Comment: It sounds as if this bill is designed to solve a problem created by cities that raised their minimum wage. Minimum wage increases are always accompanied by protestations that businesses can easily meet the increase, but here we have Assembly member Chris Holden saying these higher minimum wage laws may force disability service providers "to shut their doors."

It really isn't rocket science: If apples cost more, people buy fewer apples; if employees cost more, employers hire fewer people, or, as Holden suggests, they may just go out of business.

- Brad Haugaard

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