D.C. Moves to Hike Minimum Wage for Big-Box Retail Employees Despite Wal-Mart Opposition Washington, D.C., lawmakers have voted to require big-box retailers to pay 50 percent more than the district's legal minimum wage.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Newscom

Washington, D.C., politicians have moved forward with plans to raise the local minimum wage for employees at major retailers, despite opposition from retail behemoth Wal-Mart.

The Washington, D.C., city council voted Wednesday to pass a law in the capitol city that would require big-box stores to pay their employees 50 percent more than the existing district minimum wage.

Called the "Large Retailer Accountability Act of 2013," the Act, which still needs to be signed by D.C. Mayor Vincent Gray, would require retailers with more than $1 billion in annual revenues and indoor retail premises of 75,000 square feet or more, to pay employees making less than $50,000 a year at least $12.50 per hour. Currently, the minimum wage in D.C. is $8.25 per hour.

The vote came the day after Wal-Mart threatened to pull back plans to open stores in D.C. if the city council passed the act. In an op-ed published in the Washington Post on Tuesday, Wal-Mart's general manager for the U.S., Alex Barron, who is responsible for all planned stores in the D.C. region, said that the D.C. city council would give the retailer no choice but to backtrack on its plans if city leaders passed the law. Wal-Mart had plans to open six stores in the metro area, and three are currently under construction.

"Unfortunately, the district may soon adopt legislation that discriminates against business and threatens to undo all that we have accomplished together," Barron wrote. "From day one, we have said that this legislation is arbitrary and discriminatory and that it discourages investment in Washington."

Related: Wal-Mart Offers Entrepreneurs a Chance to Compete for Shelf Space

In the wake of the vote, Wal-Mart confirms that it will not pursue three of its planned D.C. stores and will review the implications on the three stores already under construction, says Steven V. Restivo, senior director of communications at Wal-Mart. "This was a difficult decision for us and unfortunate news for most D.C. residents, but the council has forced our hand," says Restivo.

The city council says that the cost of living in D.C. is 42 percent higher than the national average, and local workers need more money to maintain a decent standard of living. "District residents at the lowest end of the wage spectrum find it increasingly difficult to earn a living," the council says in a background briefing on the bill. What's more, the council says that low-wage workers are likely to spend the money they make in their local economy, which would be a boon to the region.

In a strongly worded statement, the National Retail Federation has expressed its disapproval of the ruling. "The Large Retailer Accountability Act is a flawed and unwarranted bill and a prime example of why the district is consistently ranked as one of the worst places to do business in the nation," says David French, the senior vice president of government relations at the Washington, D.C.-based advocacy organization. "It is also a prime indicator as to why unemployment remains consistently high for district residents even as it improves in surrounding jurisdictions."

Related: New York City to Require Employers to Give Paid Sick Leave

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Leadership

5 Lessons I Wish I Didn't Learn the Hard Way During My 20 Years in Business

Starting a business has been one of the most exciting and fulfilling chapters of my life — but it's also been unpredictable, humbling and often much harder than it looks from the outside. Here are a few pieces of hard-earned wisdom I wish I'd known from day one.

Health & Wellness

How Do You Build Culture Working Fully Remote? Start By Trying This One Thing.

Get practical advice from Dr. Drew and serial investor Kim Perell on this episode of Entrepreneur Therapy, featuring HigherDOSE co-founder Katie Kaps.

Devices

Boost Office Output with This 27″ 4K Monitor Deal

Upgrade your team's workspace and boost employee performance with $60 off a 27" 4K monitor.

Business News

Elon Musk Gives One-Sentence Response to Linda Yaccarino Stepping Down as CEO of X

Linda Yaccarino announced on Tuesday that she was leaving her role as X's chief executive.