New Los Angeles Minimum Wage

Starting July 1, 2022, all employees covered by the Los Angeles’ Minimum Wage Ordinance will get a raise, earning at least $16.04 per hour. (The current applicable minimum wage for all covered employees is $15.00/hour.)

Employers should note that covered employees are those who in any particular week, perform at least two (2) hours of work within the geographic boundaries of the City of Los Angeles. This includes full-time, part-time, seasonal, or temporary employees. Businesses mainly operating outside of metropolitan Los Angeles but sending service or sales personnel into the City for quick calls and site visits should pay close attention.

Also, the City’s minimum wage has no bearing on the minimum salary required for exempt employees. Such minimum threshold is determined by the state’s minimum wage (currently $14/hr for employees who work for employers with 25 or fewer employees, and $15/hr for employees who work for employers with 26 or more employees).

Last, employers are reminded to post notices of current minimum wage rates in a conspicuous place – near water coolers or time clocks, or in break rooms and kitchens – it just needs to be in a place accessible to all employees. Current posters re minimum wage and paid sick leave are available at wagesla.org, in multiple languages.

E-mailing the notice to all employees is also acceptable under California’s new law, Senate Bill 657, provided that a hard copy notice is ALSO placed in accessible areas at the work site. In other words, the physical poster must be displayed – the email notification is an additional help for those working remotely.

Tal Burnovski Yeyni provides counsel for employers with compliance issues.