City of Los Angeles and Unincorporated Areas of Los Angeles County Minimum Wage Increases to $10.50 Per Hour on July 1, 2016

By: Brian E. Cole II

July 1, 2016

http://www.callaborlaw.com/entry/reminder-city-of-los-angeles-and-unincorporated-areas-of-los-angeles-county

Effective this Friday, July 1, 2016, employers with 26 of more employees, must pay employees who perform at least two hours of work within the geographic boundaries of the City of Los Angeles within a particular week at least $10.50 for each hour worked.   

Following suit, Los Angeles County’s equivalent minimum wage rate increase schedule also becomes effective on July 1, 2016.  Under the Los Angeles County wage ordinance, for employers with 26 of more employees, $10.50 per hour must be paid to employees who perform at least two hours of work in a particular week within unincorporated areas of Los Angeles County.

The equivalent Los Angeles County minimum wage rate increase has created some confusion as to its breadth of application, which only applies to unincorporated areas of Los Angeles County.  Incorporated cities in Los Angeles County may have (or will have) their own minimum wage increase schedules and requirements.  For example, the City of Long Beach’s set minimum wage increase does not take effect until January 1, 2017 for certain employers.

For the City the Los Angeles and unincorporated areas of Los Angeles County, this new $10.50 hourly rate is an increase from $10.00 per hour for employers with 26 of more employees.  For employers with 25 or fewer employees, the minimum wage rate will not increase to $10.50 until July 1, 2017.  Thereafter, the minimum wage rate increases will following the below schedules:

For employers with 26 or more employees:

• July 1, 2017: $12.00 per hour
• July 1, 2018: $13.25 per hour
• July 1, 2019: $14.25 per hour
• July 1, 2020: $15.00 per hour

For employers with 25 or fewer employees:

• July 1, 2018: $12.00 per hour
• July 1, 2019: $13.25 per hour
• July 1, 2020: $14.25 per hour
• July 1, 2021: $15.00 per hour

Despite the identical minimum wage rate increase schedules, the City of Los Angeles and Los Angeles County wages ordinances include some differences.  For example, under the City of Los Angeles wage ordinance, it permits nonprofit organizations with more than 25 employees to apply for coverage under the small business schedule.  Additionally, by example, beginning in July 1, 2022, the minimum wage rate increases will be determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the Los Angeles metropolitan area under the City of Los Angeles wage ordinance.  Under the Los Angeles County wage ordinance, increases will be determined by an adjusted CPI measure.

*For more information, please visit www.BeverlyHillsEmploymentLaw.com