"Living Wage" Bill Aimed At Walmart Is Deemed A "Job Killer"

By Sam Lewis

D.C.’s mayor vetoes the Large Retailer Accountability Act

Vincent Gray, the mayor of Washington, D.C., vetoed a bill on Thursday, September 12, aimed to raise the minimum wage to $12.50 hourly — a raise of $4.25 hourly — within the district. The denied measure would have forced big retailers, like Walmart and Target, to increase workers’ wages. Recently, some Walmart employees have protested against the retailer, demanding better wages.

The bill, called the Large Retailer Accountability Act, was passed by the city council of D.C. in July, needing only the Gray’s signature to become law. Instead, Gray released a letter that explained reasons for his veto. The letter stated, if the bill was approved, it would “result in significant harm to the residents and areas of the District most in need of jobs, economic development, and new amenities.” In addition, Gray said the bill was “not a true living-wage bill, because it would raise the minimum wage only for a small fraction of the District's workforce.” The mayor later tweeted “Even if the bill created a small number of higher-paying jobs, it does nothing to ensure that jobs would actually be filled by D.C. residents.”

The NRF released a statement following Gray’s veto, praising the mayor’s decision. “The Mayor recognizes the positive role that retail plays in economic development, and retailers’ unmatched ability to improve communities and provide desperately-needed jobs and careers. His veto is a testament to the commitment he has to D.C. residents, especially young people.”

The bill clearly targeted big retailers — having 75,000 square feet of space and annual sales over $1 billion — was expected to be vetoed. During the months prior to Gray’s decision, critics of the bill, some of whom were on Gray’s staff, called the bill a “job killer.” Executives of major retailers publicly expressed their desire for the bill to be vetoed, with Walmart warning of plans to abandon the construction of additional stores in D.C. if the bill passed.

Despite Gray’s veto, the bill still has a bit of life left in it. The city council of Washington, D.C. can override the bill with a two-thirds in favor vote. This vote must come within 30 days of the veto, and could come as soon as Tuesday, September 17. In June, D.C.’s city council voted initially in favor of the bill, eight votes to five.