Design and Construction Report staff writer
The Los Angeles City Council has approved a report instructing the Chief Legislative Analyst to commission a study on the potential effects of a Residential Construction Minimum Wage (RCMW) for mid-size residential projects in the city.
The study, to be launched within 30 days following the Oct. 28 vote, will focus on developments with 10 or more residential units under 85 feet in height, excluding projects already subject to prevailing wage rates or project labor agreements. Researchers will examine wage levels that allow workers to afford living in Los Angeles, taking into account housing costs and healthcare coverage, while minimizing potential negative impacts on the construction industry.
Dozens of members of the Western States Regional Council of Carpenters attended the council meeting, thanking council for approving the study and encouraging them to “continue to fight.”
“A residential construction worker minimum wage is a simple moral commitment,” said Corey Crockram. “If you help build Los Angeles, you should be able to live in Los Angeles.
“A minimum will not only ensure more livable for thousands of Angelenos, it’ll strengthen our housing workforce and ensure we can build the housing L.A. desperately needs now and for the future.
Councilmembers also directed the CLA to report the study’s findings within 60 days. The process will include feedback from industry groups such as the Building Industry Association of Southern California, the Los Angeles Builders Association, and the Council of Infill Builders, as well as labor representatives, including the Western States Regional Council of Carpenters and the Los Angeles/Orange County Building Trades Council.
The study will analyze differences between mid-size residential construction and other labor-intensive industries, including injury rates, wage theft violations, and worker earnings. It will also examine potential impacts on employment, housing development, and the broader Los Angeles economy.
In addition, the Council asked the CLA, with assistance from the Bureau of Contract Administration and the City Attorney, to report on strategies to combat wage theft in the construction industry. Recommendations may include increasing investigative staffing and establishing a private right of action.
Ray Lawson of the Western States Regional Council of Carpenters told the council the study “goes right at the heart of the biggest issue facing our city, who builds the housing we need.”
