The Los Angeles Increase in Minimum Wage and Who It Affects

Is Your Company Subject to the Minimum Wage Ordinance Taking Effect July 1, 2017?

The Office of Wage Standards increases the Los Angeles City and Los Angeles County minimum wage rates under the Minimum Wage Enforcement Ordinances.  If your minimum wage employees are on a bi-weekly pay schedule, starting the next pay period, they may be entitled to wage increases.  If the employees actually perform their work within Los Angeles City or Los Angeles County boundaries and they are not public employees, then the new minimum wage law (starting July 1, 2017) affects minimum wage employees’ pay rate in accordance with either the “small business” category (25 employees or fewer) or the “regular business” category (26 employees or greater).

For businesses that operate within the City of Los Angeles or the County of Los Angeles and are subject to either ordinance, pay rates for their employees increase next month.  The increase takes place this July 1, 2017 from $10.00 to $10.50 per hour for companies with 25 or less employees, and from $10.50 to $12.00 per hour for companies with 26 or more employees.

The City and County of Los Angeles only count the employees that work within the City and County boundaries—not outside—because an employee is defined as those “employees that work within the geographical boundaries,” so those employees outside the geographical boundaries do not help those employees within boundaries get the higher increase because they are not considered employees for purposes of this City or County Ordinance.

If you are unsure if your company or employer is subject to the small business category or regular business category, complete a MW2-MWO worksheet located at www.wagesla.lacity.org to find out.

To see if your company is within the boundaries governed by the City or County Ordinances, visit www.neighborhoodinfo.lacity.org.

For more information on wage and hour legal issues, including litigation, please contact Ryan C. C. Duckett at rduckett@stubbsalderton.com or Jeffrey F. Gersh at jgersh@stubbsalderton.com, or call (818) 444-4500.

Nothing herein shall be constituted as legal advice.

 

About Stubbs Alderton & Markiles, LLP

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