Los Angeles minimum wage to increase to $15 by 2020

They mayor of Los Angeles signed an ordinance on June 13, 2015 that will raise the minimum wage of that city to $15.00 by 2020. The wage hike was previously approved by the city council on May 19, 2015. The ordinance will raise the minimum wage in increments over a five-year period. A modified schedule of increases would apply to businesses with 25 or fewer employees.

Wage increases. Beginning in 2016, the minimum wage in Los Angeles would increase annually as follows: on July 1, 2016, to $10.50; on July 1, 2017, to $12.00; on July 1, 2018, to $13.25; on July 1, 2019, to $14.25; and on July 1, 2020, to $15.00.

A modified schedule with delayed implementation of the increases would apply to businesses with 25 or fewer employees. Beginning in 2017, the minimum wage for those businesses would increase on July 1, 2017, to $10.50; on July 1, 2018, to $12.00; on July 1, 2019, to $13.25; on July 1, 2020, to $14.25; and on July 1, 2021, to $15.00.

Starting on July 1, 2022, the minimum wage would be increased annually based on the average Consumer Price Index over the previous 20 years. This rate will be established by the Department of Public Works, Bureau of Contract Administration (BCA), and announced on January 1 each year.

Non-profits. Under the ordinance, the modified schedule will apply to non-profit organizations with 25 or fewer employees. Alternatively, those organizations would be able to apply for a waiver through the BCA if their top executive earns less than eight times the wage of the lowest-paid worker, and the organization either serves transitional employees, or is primarily funded by state or federal reimbursements that are more than 50 percent of payroll.

Other provisions. In addition, the youth wage, consistent with California state law, will remain at 85 percent of minimum wage for 160 hours for workers 14-17 years old. The City Council also directed the City Attorney to develop paid time off policies that would remain consistent with previous city wage policies and ensure consistency with the Los Angeles’ hotel minimum wage relative to service charges. (Los Angeles City Council File 14-1371, signed by Mayor on June 13, 2015.)

For more information on this and other topics, consult the Visit our News Library.