Are you an employer in the City of LA, or unincorporated areas of Los Angeles County? As of July 1st, 2016, employers are required to pay the new minimum wage rates as follows:
LA County – effective July 1st of each year
Anyone who works at least two hours in one week within the unincorporated areas of Los Angeles County is entitled to the County minimum wage for the hours worked in the unincorporated area of the County. If your employee has not performed work in unincorporated L.A. County, you must pay the minimum wage established by the State of California or the city where your business is located.
The employee’s employment status, where they live, or where your business is headquartered does not determine the minimum wage that applies.
To find out if work done is in an unincorporated area of L.A. County, enter the address at the County Registrar-Recorder’s website or call DCBA.
These rates are the same for the City of LA and are applicable to non-profit organizations. For specifics on who is exempt and disclosure requirements, visit www.dcba.lacounty.gov/wageenforcement or contact (800) 593-8222.
City of LA – Raise the Wage LA initiative
| Effective Date | Employers With 26 or more Employees | Employers with 25 or fewer employees or Non-Profit corporations with 26 or more Employees with approval to pay a deferred rate | ||
| 7/1/2016 | $10.50 | $10.00 (CA State Minimum Wage) | ||
| 7/1/2017 | $12.00 | $10.50 | ||
| 7/1/2018 | $13.25 | $12.00 | ||
| 7/1/2019 | $14.25 | $13.25 | ||
| 7/1/2020 | $15.00 | $14.25 | ||
| 7/1/2021 | $15.00 | $15.00 | ||
Make sure to provide all forms to employees as required by law and to have a sick pay policy in place. Also, take note that there are different rates for special classifications, such as city projects, that will also be effective as of July 1st. For the most up-to-date information visit http://bca.lacity.org/ or City Minimum Wage FAQ.
City of Los Angeles Administrative Fines for Violations
Every day that a violation exists constitutes a separate and distinct violation. Any administrative fine assessed within a three(3)-year period in any Notice of Correction and determined to be a subsequent violation of the same provision by the same Employer may be increased cumulatively by fifty (50) percent from the maximum administrative fine allowed.
| Violation | Fine Amount | |
| Failure to post notice of the Los Angeles Minimum Wage rate and Sick Time Benefits- Municipal Code Section 188.03.A. | Up to $500 | |
| Failure to allow access to payroll records – Municipal Code Section 188.03.B. | Up to $500 | |
| Failure to maintain payroll records or to retain payroll records for four years – Municipal Code Section 188.03.B. | Up to $500 | |
| Failure to allow access for inspection of books and records or to interview employees – Municipal Code Section 188.03.C. | Up to $500 | |
| Retaliation for exercising rights under this article – Municipal Code Section 188.04 – The Penalty for retaliation is up to $1,000 per employee. | Up to $1,000 | |
| Failure to provide employer’s name, address, and telephone number in writing – Municipal Code Section 188.03.A or 188.05.B. | Up to $500 | |
| Failure to cooperate with the Division’s investigation – Municipal Code Section 188.05.B. | Up to $500 | |
| Failure to post Notice of Correction to employees – Municipal Code Section 188.06.D. | Up to $500 | |
Employees working in these areas must be paid the proper minimum wage to avoid penalties. See the FAQ pages for each area if you have any questions.
