06/30/2016
LA CITY BUSINESS OWNER ALERT
City of Los Angeles New Paid Sick Leave and Minimum Wage Ordinance Effective July 1, 2016
June 30, 2016
The City of Los Angeles recently enacted an Ordinance imposing an increased minimum wage and mandatory paid sick leave, which takes effect July 1, 2016, and is more onerous than corresponding state laws. The effective date is deferred by one year for employers with 25 or fewer employees.
Los Angeles Minimum Wage Ordinance (“MWO”)
Starting July 1, 2016,any employer, regardless of its principal place of business, who has an employee that works at least two hours in a week within the geographic boundaries of the City of Los Angeles is covered by the MWO and must pay at least $10.50 per hour, which is above the state minimum wage of $10 per hour.
The ordinance also establishes a schedule of increases over the next six years (see chart below). Small employers with 25 or fewer employees will have until July 1, 2017, to comply with the current increase and each subsequent increase will be deferred for a year as well.