Couple of days ago, the City of LA voted to increase the minimum wage. Many have questions and want clarification in regards to the increase of the minimum wage. Below, The Mayor’s office has updated summary of what occurred and what will occur in the near future :

Ordinance Instructions

The Council instructed the City Attorney to draft an ordinance to raise the minimum wage with the following instructions:

The minimum wage in the City of Los Angeles will be increased on the following schedule:

7/1/16: $10.50

7/1/17: $12.00

7/1/18: $13.25

7/1/19: $14.25

7/1/20: $15.00

A modified schedule will be in place for businesses and nonprofits with 25 or fewer employees:

7/1/17: $10.50

7/1/18: $12.00

7/1/19: $13.25

7/1/20: $14.25

7/1/21: $15.00

Nonprofits with greater than 25 employees can apply for a waiver through the Department of Public Works, Bureau of Contract Administration (BCA), if their top executive earns less than five (5) times the wage of the lowest-paid worker; or provide transitional jobs programs; or serve as child care providers; or are primarily funded by City, County, State, or Federal grants or reimbursements. The waiver process will be established by the BCA.

Beginning 7/1/22, the minimum wage will be increased annually at a rate consistent with CPI.

Youth wages will be 85% of the minimum wage for workers 14-17 years old.

A study will be conducted every 3 years by the CLA and CAO after the minimum wage ordinance has been implemented to review the state of the City’s economy.

Next Steps

The CLA will report back to the Economic Development Committee on 6/23/15 on recommendations for a sick leave policy for all employees in the City.

The CLA will report back to the Economic Development Committee on an analysis of service charges for businesses with tipped workers.  This will be done prior to implementation of the minimum wage ordinance.

Once drafted, the ordinance will go back to Economic Development Committee then to Council for a final vote.