On May 19, 2015, the Los Angeles City Council approved Motion 4E, providing annual minimum wage increases for employees in the City of Los Angeles up to $15.00 in 2020. The measure applies to all employers, but implementation is delayed for employers having no more than 25 employees. Non-profits with more than 25 employees may apply for a waiver if they meet certain conditions.

The initial increase will be to $10.50 on July 1, 2016. This is $.50 higher than the state minimum wage that goes into effect on January 1, 2016. See our previous blog, Amended Minimum Wage Notice Must Be Posted by July 1, 2014.

The Los Angeles measure provides for further increases each July 1 thereafter – to $12.00 in 2017, $13.25 in 2018, $14.25 in 2019, and finally $15.00/hour on July 1, 2020. Employers who have 25 or fewer employees must begin implementing the increase in July 2017 and have until 2021 to reach $15.00/hour. The approved measure directs that minimum wage for 14-17 year-olds will remain at 85 percent of minimum wage.

The matter has now been referred to the City Attorney to draft an ordinance implementing these changes, to be approved by the City Council. The ordinance is also to provide that wages will increase annually after 2020 according to the Consumer Price Index for Los Angeles.

This move by the City of Los Angeles follows a trend in California and nationally to increase minimum wage. See, Oakland Minimum Wage Escalates to $12.25 and San Francisco Minimum Wage Escalates to $12.25 on May 1, 2015.

For further information, contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.

Helena Kobrin, May 22, 2015