Though owner David Cooley gave no official reason for putting The Abbey up for sale last week, the L.A. Business Journal says the blame lies directly with West Hollywood’s new minimum wage law.
A new report in the journal claims Cooley met with Mayor Sepi Shyne prior to the law taking effect in order to voice his concerns. The meeting apparently did little to persuade the mayor of the detrimental effects of WeHo’s minimum wage — the highest in the nation — on local businesses.
According to the journal, Cooley told Shyne, “The policy adds another $1 million to the Abbey’s expenses” and that he “had never before thought of closing until now seeing their policy destroying us.”
The minimum wage ordinance was passed in 2021 and went into effect July 1 despite substantial pushback from the business community. The new policy mandates annual wage increases of up to 4%. In addition, businesses are now obligated to provide sick leave and vacation time to their workers, a benefit seldom encountered in service-industry occupations.
While business owners acknowledged their desire to support higher wages for their employees, they expressed apprehension about the potential repercussions of increased costs, such as the potential for layoffs or reduced working hours.
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