EMPLOYMENT LAW NEWS

City of Los Angeles Announces Minimum Wage Update

By Dana Holle, GovDocs Associate Counsel
Employment Law and Compliance
Published April 16, 2024
Minimum Wage Update for City of Los Angeles 2024

The citywide minimum wage will increase by $0.50 to $17.28 on July 1, 2024. 

What is the Updated Minimum Wage Rage Rate in Los Angeles for 2024?

The citywide minimum wage in Los Angeles, California will increase to $17.28 on July 1, 2024. 

A Brief Background of Minimum Wage Rates in the City of Los Angeles 

The Los Angeles City Council originally passed a minimum wage ordinance in 2015. The ordinance created a new minimum wage schedule that incrementally increased the citywide minimum wage to $15.00 for employers with 26 or more employees on July 1, 2020, and $15.00 for small employers with 25 or fewer employees on July 1, 2021.  

Since July 1, 2022, the minimum wage has adjusted based on changes to the consumer price index (CPI-W) for the Los Angeles metro area. Under the ordinance, the Office of Wage Standards is required to announce and publish the adjusted rates each year on Feb. 1.  

Minimum Wage Requirements 

Since the LA minimum wage rate hit the $15.00 threshold in 2021, the wage rate has increased as follows:  

Effective Date  Minimum Wage 
July 1, 2021  $15.00 
July 1, 2022  $16.04 
July 1, 2023  $16.78 
July 1, 2024  $17.28 

 

As shown in the table above, the minimum wage will increase by $0.50 on July 1, 2024. Since the minimum wage began adjusting based off changes to the consumer price index, the wage rate has risen $2.28 over the last three years – a 15.2% increase. 

Further, under Los Angeles’ minimum wage ordinance, the minimum wage rate applies to employees who work at least two hours a week within the geographic boundaries of the City of Los Angeles and qualify as an employee under California’s minimum wage law. The applicability of the citywide minimum wage is significant, as Los Angeles County also has its own separate minimum wage that applies to the unincorporated areas of the county. 

In addition to the standard minimum wage, employers should note that the City of Los Angeles also has a Hotel Worker Minimum Wage Ordinance, which applies to hotels with 60 or more guest rooms. The hotel worker minimum wage will increase to $20.32 on July 1, 2024. 

Los Angeles Labor Law Posting Requirements

The ordinance further states that every covered employer must display a new labor law poster, published each year by the Office of Wage Standards in Los Angeles, informing employees of the current city minimum wage rate and paid sick leave benefits. According to the Office of Wage Standards, the poster must be displayed in English and any additional languages spoken by at least 5% of the employees at a location. Notably, the poster is available in 13 languages on the Wages LA website. 

The 2024 Los Angeles Minimum Wage and Paid Sick Leave poster was recently released by the Office of Wage Standards. Accordingly, the GovDocs Update Program will ship the updated postings out to customers with locations in the City of Los Angeles. 

Minimum Wage Rate Management at the Local Level 

With the new Los Angeles minimum wage rate announcement in place for July 1, 2024, employers should review their payroll records and confirm compliance with the upcoming, citywide minimum wage. As a reminder, failure to display the updated labor law posters and failure to maintain payroll records could result in a fine up to $500, reaffirming the necessity of a resourceful Employment Law and Compliance Platform to ensure continued compliance in your labor law posting and minimum wage rate management.   

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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