Increases in Los Angeles City and County Minimum Wages Effective July 1

Increases in Los Angeles City and County Minimum Wages Effective July 1

Updated on July 01, 2022 16:15 PM by Anna P

Beginning on July 1, employers within Los Angeles City or Los Angeles County will need to pay their minimum wage employees at or near the current $15 per hour wage. As a result of the Los Angeles Minimum Wage Ordinance, the minimum wage for all workers who perform at least two hours of work in any given week in the City of Los Angeles will rise from $15 an hour to $16.04 an hour. Employees covered by the County of Los Angeles wage law also have a new minimum wage. Since Los Angeles County uses a different method for adjusting its cost of living, its rate is $15.96 per hour. Depending on the location of the workplace within Los Angeles, laws can vary. Employers must be careful. Santa Monica, West Hollywood, Malibu, and Pasadena have specific minimum wage requirements with which employers must comply. 

A law passed by the Los Angeles City Council would soon guarantee most healthcare industry workers a minimum wage rate of $25 an hour if it is approved by Mayor Eric Garcetti. Furthermore, this law would restrict layoffs and benefits cuts that could otherwise be used to offset the burden imposed by this law. This law parallels the additional requirements for a specific City of Los Angeles ordinance requiring full-time hotel employees to earn at least $18.17 per hour minimum wage and receive sick leave pay if their employer has 150 or more guest rooms. Section 187.02 of the Minimum Wage Order takes effect on July 1, 2022, and links the city minimum wage to the Consumer Price Index for Urban Wage Earners and Clerical Workers. The CPI-W will be adjusted annually in alignment with the Consumer Price Index published by the Bureau of Labor Statistics, allowing employers to anticipate and plan for future increases.

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Companies in Los Angeles will have to implement several requirements and changes immediately. Those employers who are not in compliance with the new minimum wage rates will be at risk of wage and hour violations. Employers need to be aware of their current minimum wage rates and any additional requirements for their type of business to be fully compliant with the ordinance set to take effect on July 1, 2022.

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