DC Bill Increases Retail Wages

The City Council in the District of Columbia has passed a bill, the Large Retailer Accountability Act, requiring any store that is at least 75,000 square feet and whose parent company has at least $1 billion a year in revenue to pay $12.50 an hour to employees, 50 percent more than the District’s minimum wage of $8.25.

The legislation now goes to DC mayor Vincent Gray, who has not said directly whether he will sign the measure or veto it within a required 10-day window.

The bill seems directly aimed at Walmart Stores Inc. (Bentonville, Ark.), which has said it will cancel plans to open three of six new stores in Washington if the legislation is passed.

Mayor Gray has already expressed doubts about the bill and called Walmart’s threat “discouraging.” A mayoral spokesman said, “The mayor has indicated his serious concerns over the lost jobs and retail opportunities for district residents that the bill will cause. As he waits for the council to send the legislation to him, he’ll be interested to hear what district residents and employers think.”

The measure passed the 13-seat council 8 to 5. If the mayor vetoes the bill, it would require 9 votes to override the veto.

While Walmart’s threat puts it in the cross-hairs of the current debate, all top 100 American retailers fit the bill’s description and would be affected by it. However, unionized stores are exempt and existing stores would not immediately be required to pay the $12.50 wage.