New Minimum Wage Ordinance Approved in Los Angeles Effective July 1, 2016

On June 3, 2016, the Los Angeles City Council tentatively approved to the new minimum
wage ordinance that is closely in sync (BUT at a faster pace) with the State Legislatures
Senate Bill 3 titled: Minimum Wage: In-Home Supportive Services: Paid Sick Days. (Click
here to read our blog about it.) This ordinance was finally approved a week later on June 10,
2016 and signed into effect by Mayor Eric Garcetti.
Beginning on July 1, 2016, this ordinance raises the minimum wage of employees within the
city of Los Angeles to $10.50 per hour for businesses with 26 or more employees. Businesses
with fewer employees are allowed to delay the increase for one year.
By July 2017, the wage will then go up to $12 per hour; $13.25 by July 2018; $14.25 per hour
by July 2019; and ultimately to $15 per hour by July 2020 (with a corresponding increase for
smaller employers with fewer than 26 employees to follow a year after each applicable
date). Once the minimum wage reaches $15 per hour for both small and large employers by
2021, the ordinance additionally calls for a continued increase in 2022, based on the then
current cost of living.
This ordinance and Senate Bill 3 both aim to increase the minimum wage to $15 per hour;
however, their schedules of increase are on different timelines. The City of Los Angeles is on
a much faster pace than the State of California.
If you are currently employed and are being paid less than the statutorily mandated
amount, you may very well have a legal claim against your employer and should
immediately seek legal representation.