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Saturday, May 28, 2022

Briefs: Minimum Wage, Fireman’s Brew

Five L.A. City Councilmembers are seeking an independent study of Mayor Eric Garcetti’s proposal to raise the minimum wage to $13.25 by 2017, as well as a second Council proposal to raise it to $15.25 by 2019. The councilmembers, including Mitch O’Farrell, say they are concerned that a higher minimum wage will lead to layoffs and a reduction in hiring by non-profits and local small businesses unable to afford the labor costs. Garcetti has relied on a study by the UC Berkeley Institute for Research and Labor and Employment, which concluded that the overall effect of a raise in the minimum wage to $13.25 would be beneficial to workers. However, the councilmembers say additional review is needed, and submitted a motion on Tuesday calling for another study. The motion was applauded by the Los Angeles Area Chamber of Commerce, a critic of the wage increase. Fireman’s Brew announced on Wednesday a private offering of up to $6 million through an online platform allowed under the new federal JOBS Act. The offering will allow accredited investors in the United States and overseas to purchase shares, priced at $1.25 through FlashFunders.com, an online funding platform aimed at early-stage companies. Proceeds from the offering, which will extend to Jan. 14, will be used to accelerate the Canoga Park craft beer company’s expansion nationwide. Fireman’s Brew, founded in 2005 by two local firefighters, has been conducting private stock offerings to raise capital for expansion periodically since 2007. The latest offering would be its largest to date. The JOBS Act, signed into law by President Barak Obama in 2012, is intended to facilitate investments in startup companies by relaxing some securities regulations and allowing for capital-raising on new online platforms.

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