Los Angeles County, one of California’s original 27 counties, was established on Feb. 18, 1850. Those employees who could potentially be covered include roughly 2,500 employees, or 2.5% of the entire County workforce, earning below $13.25/hr, and possibly another 2,500 earning less than $15.25/hr. 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. Why isn’t this a matter of state or federal law? 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. 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. That has not yet been decided, either. The major benefit is poverty alleviation among lowest wage earners, 70% of whom are women and many struggling to support their families. Decreasing poverty will reduce dependence on government benefit programs like CalWORKS and CalFresh, saving taxpayer expense for such assistance programs. Los Angeles minimum wage is determined by the size of the employer. As of July 1, 2020, the new minimum wage in Los Angeles County is now $14.25 per hour for businesses with 25 or fewer employees and $15.00 per hour for businesses with 26 or more employees. Los Angeles Minimum Wage Schedule Los Angeles -unincorporated county, California Local Minimum Wage for 2019, 2020 While … What is the argument for establishing a County minimum wage, apart from any city or state minimum wage? As of 2019, the minimum wage is $12 per hour or $11 per hour for small employers with at most 25 employees. There is no County minimum wage proposal yet. The minimum wage for workers in the unincorporated areas of Los Angeles County will increase yearly starting July 1, 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. Los Angeles enacted its own minimum wage in 2015 by city council ordinance. 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. What about disparities between jurisdictions that may or not be covered by the County 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. 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. California: Los Angeles County: $15.00: $14.25 to $15.00, effective 7-1-2020: Annual indexing beginning 7-1-2022: Annual increases based on the percentage change in the CPI-W for the Los Angeles metropolitan area, beginning July 1, 2022. 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. If the City and County were to adopt similar minimum-wage ordinances, a local minimum wage would apply uniformly across half the County’s population, with the expectation that additional cities would follow suit and eventually create a consistent regional policy. 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. Who would be covered under its provisions? The minimum wage in California is $13 an hour. We’ve assembled a list of frequently asked questions to provide some detailed information on what’s at stake. The assumption is the sole provider is working full-time (2080 hours per year). But state and federal policymakers have recognized that local jurisdictions should retain the ability to require more than a national or state standard, depending on their local political determination and economic conditions. Certain cities have a higher minimum wage and in those states, the employer is required to pay the higher local 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. Subscribe to our blog for the latest employment law news. California state law prohibits employers from counting tips toward wages, although “tip pooling” is allowed for “front and back of house” workers. The County of Los Angeles is the nation’s largest local government jurisdiction, comprising 10 million residents (roughly 26% of California’s entire population), about a million of whom live in unincorporated County areas and are subject to County, not City, legal jurisdiction. For the most part, it is. Due to the COVID-19 Pandemic, responses will be delayed. 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 … While there are efforts to change that state law, in effect since 1975, LA County or City has no jurisdiction over it. Several hundred County contractors, and their unknown number of additional employees, could also be included. 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. We make workplace posting compliance easy with automation, innovation, and service levels that fit North America’s largest employers – including county and city labor law posting coverage. The County of Los Angeles is the largest Southern California employer, and as such would be expected to set an example for others. 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 … 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. Living Wage Calculation for Los Angeles County, California. If you have questions about the City of Los Angeles minimum wage requirements, you may contact the Office of Wage Standards by email ([email protected]) or by phone (844-924-3752). 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. * Beginning July 1, 2022, the County will adjust the minimum wage annually based on changes to the Consumer Price Index to help workers keep up with the cost of living. Several Southern California counties and cities increased the minimum wage July 1, including in unincorporated areas of Los Angeles County. In 2015, Los Angeles County passed a new minimum wage law nearly identical to its City of Los Angeles counterpart. 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. California’s minimum wage will rise to $10/hr on January 1st, 2016. Beginning July 1, 2016, employers must display the new L.A. County Minimum Wage notice in a conspicuous place at any workplace or jobsite located in the unincorporated areas of the County where any employee works. What is the proposed County minimum wage? But a more dynamic view of the economy argues that employers can achieve productivity savings by increasing the minimum wage, offsetting their additional costs; that customers may well be less sensitive to moderate price increases, allowing employers to pass along some of the cost without overly jeopardizing profits; and that putting more money in the pockets of low-wage employees will more rapidly circulate throughout the local retail economy, creating a “multiplier effect” and thus benefitting the entire region. Workers in the city of Los Angeles and in unincorporated areas of L.A. County got a bigger paycheck last month. The City of Los Angeles is the largest of the County’s 88 cities, with nearly 40% of the County’s total population. Since passage of the Los Angeles Citywide Minimum Wage, the County of Los Angeles adopted a minimum wage program with the same wage schedule. Therefore, both as wage-setter for unincorporated areas, and as a responsible and important large employer, LA County’s minimum wage policy is important. It was last raised on July 24, 2009. The classical economic view is that the market is a closed system that is subject to strict laws of supply and demand. Any increase in prices to cover the higher payroll costs will necessarily reduce customer demand for that product or service, thus reducing the profit margin and endangering the business. 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. All proposals include a gradual phase-in over several years, along with careful monitoring so that implementation could be adjusted to minimize or offset any negative or disparate economic impacts as they might be identified. County of Los Angeles Minimum Wage Ordinance This ordinance takes effect July 1, 2016. Saint Paul, MN 55102 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. 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. If the City and County were to adopt similar minimum-wage ordinances, a local minimum wage would apply uniformly across half the County’s population, with the expectation that additional cities would follow suit and eventually create a consistent regional policy. The federal minimum wage remains unchanged at $7.25. What are the pros and cons of raising the minimum wage? That depends on how high the minimum wage is raised, and how many employees are covered, matters which will be determined after the Board receives the LAEDC analysis. It also permits local jurisdictions to function as policy laboratories from which state and federal authorities can learn and apply to their own policymaking. The County’s version applies to all unincorporated areas of the county and takes effect July 1, 2016. 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