Los Angeles Minimum Wage Increase

On 11 June 2015 the Los Angeles City Counsel passed an ordnance that will raise the minimum wage all the way to $15.00 by the year 2020 and sent it to the Mayor’s office.  The Mayor (Eric Garcetti) has until 22 June 2015 to sign the measure into law.  All indications are that he will sign it.

The Ordnance cites studies show that minimum wage increases reduce worker turnover. Turnover creates financial costs for employers. Reduced worker turnover means that workers will have more tenure with the same employer, which creates incentives for both employers and workers to increase training and worker productivity.

The ordnance stipulates wage increases as follows:

Employers with 26 or more Employees shall pay a wage of no less than the hourly rates set forth:

1. On July 1, 2016, the hourly wage shall be $10.50.
2. On July 1, 2017, the hourly wage shall be $12.00.
3. On July 1, 2018, the hourly wage shall be $13.25.
4. On July 1, 2019, the hourly wage shall be $14.25.
5. On July 1, 2020, the hourly wage shall be $15.00.

C. Employers with 25 or fewer Employees shall pay a wage of no less than the hourly rates set forth:

 1. On July 1, 2017, the hourly wage shall be $10.50.
2. On July 1, 2018, the hourly wage shall be $12.00.
3. On July 1, 2019, the hourly wage shall be $13.25.
4. On July 1, 2020, the hourly wage shall be $14.25.
5. On July 1, 2021, the hourly wage shall be $15.00.

Beginning on July 1, 2022 and annually thereafter, the minimumw age increases will be tied to the Los Angeles Consumer Price Index for Urban wage earners and Clerical Workers (CPI-W).

The ordnance also stipulates that employees, who are "Learners" as defined in Labor Code Section 1192 and consistent with wage orders published by the California Industrial Welfare Commission and are 14-17 years of age, shall be paid not less than 85% of the minimum wage rounded to the nearest nickel during their first 160 hours of employment.  After more than 160 hours of employment, Learners shall be paid the applicable minimum wage pursuant to this section.

Sources:
Article 7, Chapter XVIII, Los Angeles Municipal Code
Los Angeles Mayor Eric Barcetti Press Release
Council File: 14-1371

By Wendy Stewart