Dear

LABC Member,

Last year, in response to Mayor Eric Garcettis request that LABC consider supporting his proposal to raise the
minimum wage in the City of Los Angeles to $13.25, we took the unprecedented step of holding a confidential vote
of our entire membership.

Our members voted overwhelmingly to support the $13.25 minimum wage as part of a comprehensive and
complementary economic development strategy, featuring a reduction in the gross receipts tax, increases in
affordable and workforce housing development, and greater investment in our transportation infrastructure.

Together, these strategies reflect LABCs priorities to make Los Angeles more competitive when attracting and
growing businesses large and small. It was in that spirit that the Los Angeles Business Council endorsed Mayor
Garcettis proposed increase in the minimum wage.

Tuesday, the Los Angeles City Council voted to approve a minimum wage package that accelerates the Mayors
plan, reaching $15 an hour by 2020 rather than 2022. The Council is now considering a motion that
would provide for 12 days of mandatory paid time off (PTO). The Councils plan was the result of new motions
hastily introduced without providing the business community adequate time to give input.

And LABC is extremely concerned about the long term economic ramifications of a mandatory annual increase
consistent with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los
Angeles metropolitan area (Los Angeles, Riverside and Orange County) starting in 2022, coupled with an increase
in mandatory paid leave.

At the Mayors request, the LABC worked diligently and in an unprecedented manner to consider and support his
$13.25 minimum wage plan. The package approved by the Council goes too far and threatens to put Los Angeles at
a competitive disadvantage. The Mayor has publicly supported the Councils action.

A copy of the plan, as approved by the Council, is attached for your review. We will provide additional updates
should they become available.

Thanks,

Mary Leslie
LABC President

Nadine Watt

LABC Vice Chairman

Jacbob Lipa
LABC Chairman

Brad Cox
LABC Institute Chairman