California Employer LAWlert: Get Ready! New Minimum Wage Ordinance for City of Los Angeles is Coming

Important Points:

  • The wage ordinance applies to full-time, part-time and temporary employees who perform at least two hours of work within a particular week in the City of Los Angeles.
  • Los Angeles employers must post the notice published by the Wage Enforcement Division showing the current minimum wage. The potential fine for failing to post this notice is $500 per day per employee.
  • Any Notice of Determination from the Wage Enforcement Division must be posted. The potential fine for failing to post this determination is $500 per day per employee.
  • Employers with 26 or more employees shall pay a wage of no less than $10.50/per hour beginning July 1, 2016, and increasing annually through July 1, 2020 when the minimum wage will be $15.00/per hour.
  • Employers with 25 or fewer employees shall pay a wage of no less than $10.50/per hour beginning July 1, 2017, and increasing annually through July 1, 2021 when the minimum wage will be $15.00/per hour.
  • Payroll records must be retained for a period of four years. The potential fine for failure to maintain payroll records or to retain them for 4 years is $500 per day per employee.
  • Any employee or any other person may report a suspected violation of the Ordinance to the BCA (Bureau of Contract Administration).
  • An employer who violates minimum wage requirements is liable to the employee for payment of back wages and an additional penalty of $100 for each day that the violation occurred or continued.
  • Where retaliation by an employer has occurred, the employee is entitled to reinstatement and a trebling of all back wages and penalties. Any adverse action against an employee within 90 days of the employee’s exercise of protected rights may be construed as retaliation for the exercise of such rights.

CLICK HERE to view and download a list of frequently asked questions and answers regarding this ordinance.

Further information can be obtained from the Department of Public Works, Bureau of Contract Administration at http://bca.lacity.org/

We hope this information is valuable to you. If you have any questions regarding this alert, please do not hesitate to contact Holman HR.