A spokeswoman for BizFed, the Los Angeles County Federation of Business, which represents businesses with 3 million workers, said increasing the minimum wage is a misguided idea. Los Angeles enacted its own minimum wage in 2015 by city council ordinance. By the way, employers must maintain payroll records for each employee for four years. All employers in the unincorporated areas of L.A. County must post the required workplace poster and pay the increased minimum wage, with few exceptions. The minimum wage for workers in the unincorporated areas of Los Angeles County increases yearly starting July 1, 2016. The Board of Supervisors unanimously approved on March 31, 2015 a joint motion by Supervisors Sheila Kuehl and Hilda Solis to commission an independent review and analysis by the Los Angeles County Economic Development Corporation (LAEDC) of four studies analyzing impacts within the City of Los Angeles – two of them by the Institute for Research on Labor and Employment at UC Berkeley, another by the Economic Roundtable in conjunction with the UCLA Labor Center, and a fourth by Beacon Economics in conjunction with the Greater Los Angeles Chamber of Commerce – which looked at different target minimum-wage levels of $13.25/hr and $15.25/hr within the City. Minimum Wage in Los Angeles County, California What is the Minimum Wage in California? On July 1, 2018 small businesses will have to pay a new minimum wage of $12.00 The current minimum wage is $10.50. Also, more than 56% of tipped workers are outside of the restaurant industry, in the hospitality, carwash, nail and beauty salon, and massage industries. The minimum wage for workers in the unincorporated areas of Los Angeles County will increase yearly starting July 1, 2016. The assumption is the sole provider is working full-time (2080 hours per year). Since passage of the Los Angeles Citywide Minimum Wage, the County of Los Angeles adopted a minimum wage program with the same wage schedule. Effective today, the minimum wage in the City of Los Angeles increases to $14.25 per hour for employers with 26 or more employees. The minimum wage will increase every year on July 1 until it reaches $15.00 per hour in 2021 for all businesses. It was last raised on July 24, 2009. Minimum-wage workers in Los Angeles, the nation's second-largest city, are getting a pay raise. California’s minimum wage will rise to $10/hr on January 1st, 2016. Under this view, an increase in wages would raise the employer’s “price” of labor, thereby reducing the employers’ demand for that labor, and leading to higher unemployment. In addition, while some economists worry that businesses will flee to lower minimum-wage jurisdictions to cut payroll costs, others argue that such negative impacts would be more than offset by the most capable workers seeking higher pay and migrating to higher minimum wage jurisdictions, taking their consumer spending power with them. Los Angeles , California Local Minimum Wage for 2019, 2020 While California's state … New LA Minimum Wage: The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Due to the COVID-19 Pandemic, responses will be delayed. Under the county plan, approved on a split vote with two Republican board members opposed, all workers would reach at least a $15 an hour minimum by 2021, tracking the city of Los Angeles. The County’s version applies to all unincorporated areas of the county and takes effect July 1, 2016. The county step comes as Los Angeles leaders are poised to gradually raise the minimum wage for everyone working within city limits from $9 an hour — the current state minimum … California state law prohibits employers from counting tips toward wages, although “tip pooling” is allowed for “front and back of house” workers. Several Southern California counties and cities increased the minimum wage July 1, including in unincorporated areas of Los Angeles County. Future Minimum Wage Rates. As large employers know, keeping up new and changing labor laws is tough enough just at the state and federal level. They reached widely differing conclusions in terms of local and regional employment and economic impacts. There are approximately 4,600 County-licensed businesses in the unincorporated areas, along with an unknown number of additional businesses, but the precise number of potentially covered employees in unincorporated areas is unknown at this time. A labor-funded report released by the Los Angeles County Federation of Labor and conducted by the Economic Roundtable concluded that the wage hike would result in … The County of Los Angeles (the County) enacted a minimum wage ordinance (the MWO) that requires you to pay any employee who works at least two hours in a particular week within the unincorporated areas of the County at the local minimum wage (the Los Angeles County minimum wage).1 This MWO does not apply in the City of Los Angeles, which has its own MWO. Saint Paul, MN 55102 It is one of the nation’s largest counties with 4,084 square miles, and has the largest population of any county … Beginning July 1, 2016, a minimum wage worker in the unincorporated areas of Los Angeles County will make $10.00 or $10.50 per hour, depending on the size of the business. In 2015, Los Angeles County passed a new minimum wage law nearly identical to its City of Los Angeles counterpart. The state of California has established a statewide minimum-wage level while authorizing local jurisdictions to increase their own minimum-wage level depending on local economic conditions and political will. Steady increases have been taking place every year since July 1, 2016. While there are efforts to change that state law, in effect since 1975, LA County or City has no jurisdiction over it. Job loss: Some argue that raising the minimum wage will overburden low-wage employers with limited payrolls, such as small businesses and non-profit organizations, increasing unemployment by slowing down new hiring or even triggering layoffs. The minimum wage in California is $13 an hour. County of Los Angeles Minimum Wage Ordinance This ordinance takes effect July 1, 2016. Los Angeles City, unincorporated areas of Los Angeles County, Pasadena, Malibu, and Santa Monica have begun phasing in minimum-wage increases over the last couple of years. ** Hayward and San Carlos will impose new minimum wages as of January 1, 2021 *** San Diego’s minimum wage has been surpassed by the state minimum wage In 1978, the California minimum wage was $2.65/hour. The major benefit is poverty alleviation among lowest wage earners, 70% of whom are women and many struggling to support their families. After that, the minimum wage will increase annually pegged to a measure of inflation, the Bureau of Labor Statistics Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles metropolitan area. The federal minimum wage remains unchanged at $7.25. Living Wage Calculation for Los Angeles County, California. In the meantime, the County has been holding public forums on raising the minimum wage to get feedback, ideas and opinions from our residents and businesses. As to who bears the costs, economists also disagree over the relative ability of businesses to either absorb some of the expense, or pass it along to their customers in the form of slightly higher prices. On July 1, 2020, the City of Los Angeles minimum wage rate for 26 or more employees will increase to $15.00. Currently the statewide minimum wage is $9.00/hr, while the federal minimum is $7.25/hr. The LAEDC report is due back by the end of May, and will extend the analysis to the entire County. What about disparities between jurisdictions that may or not be covered by the County minimum wage? That has not yet been decided, either. Los Angeles County, one of California’s original 27 counties, was established on Feb. 18, 1850. * Novato has a third category of minimum wage, for very large businesses with 100+ employees. That study will likely be reported to the Board by late May. Economic stimulus and a boost for small business: Many economists argue that small businesses will benefit from a higher minimum wage, because raising the minimum wage will lead to a more stable and productive workforce by reducing turnover and lowering the costs of recruiting, training and retaining new employees. It also permits local jurisdictions to function as policy laboratories from which state and federal authorities can learn and apply to their own policymaking. Certain exemptions and deferrals may be available. What are the pros and cons of raising the minimum wage? Several hundred County contractors, and their unknown number of additional employees, could also be included. In addition, employees within the geographic boundaries of the City of Los Angeles who perform at least t … Los Angeles Minimum Wage Fact Sheet On Tuesday, May 20th the Los Angeles City Council voted 14 to 1 (Englander dissenting) to support creating a citywide minimum wage. This ordinance applies to employees who perform at least two hours of work in a particular week within unin-corporated areas of Los Angeles County. Decreasing poverty will reduce dependence on government benefit programs like CalWORKS and CalFresh, saving taxpayer expense for such assistance programs. In March, the LA County Board of Supervisors passed a motion, co-authored by Supervisors Kuehl and Solis, to study the impact of raising the minimum wage for those working in our unincorporated areas, as well as County employees and contractors. Los Angeles Minimum Wage Schedule Subscribe to our blog for the latest employment law news. Contact us when you’re ready to simplify your posting compliance program! Same as regular minimum wage. The City of Los Angeles is the largest of the County’s 88 cities, with nearly 40% of the County’s total population. What is the argument for establishing a County minimum wage, apart from any city or state minimum wage? Because this is higher than the federal minimum wage of $7.25, employees in California must be paid at least $13 an hour. The classical economic view is that the market is a closed system that is subject to strict laws of supply and demand. For employers with 25 or fewer employees or non-Profit corporations with 26 or more employees with approval to pay a deferred rate, the wage is increased to $13.25 per hour. The County is also the largest employer in Los Angeles. In a 13-1 vote on Wednesday, Los Angeles County lawmakers approved an ordinance that would raise the current minimum wage from $9 an hour to $15 an hour by 2020. They also argue that minimum-wage workers spend a greater share of their income on consumer goods, thus stimulating the local economy, particularly in retail and restaurants near low-income neighborhoods. The pay boost kicked in July 1 when the minimum wage … The County will release a new posting each year to reflect the current wage rate, which makes an automatic posting compliance program like the GovDocs Update Program so appealing to large employers who just want to “hit the easy button” on their posting compliance program. Why isn’t this a matter of state or federal law? Economists recognize that there will be some disparate and distorting impacts between neighboring jurisdictions, though they disagree on whether they will result in a net positive or negative impact on the region as a whole. Click here to download Minimum Wage FAQs in PDF. In 2015, Los Angeles County passed a new minimum wage law nearly identical to its City of Los Angeles counterpart. The County will look at the LA City new minimum wage ordinance, expected to be voted on by the end of May, as well as the LAEDC report, and determine its policy, likely in June. The County of Los Angeles is the largest Southern California employer, and as such would be expected to set an example for others. Copyright © 2020 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Oregon 2016-2017 Minimum Wage Posting Released. The minimum wage rate will be adjusted every year according to Los Angeles Minimum Wage Ordinance Section 187.02. 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