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15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

What to Know About the Los Angeles Minimum Wage Increase

Businesses located within Los Angeles City or County should be aware of the Los Angeles minimum wage increase that took place on July 1st this year.

It’s important to know your responsibilities as a business as well as what penalties you may face if you don’t comply with the new requirements. A key aspect of small business management is staying on top of new rules and regulations that impact your company.

As an employer, you’re sure to have some important questions regarding these changes and how they will affect your business.

Let’s take a look at a few updates you need to know about the Los Angeles minimum wage increase.

Wage Increases Will Continue for Several Years

The Los Angeles minimum wage increase went into effect in July 2016 with a plan to gradually increase the minimum wage through 2021.

Here are the Key Dates

The minimum wage increase schedule for employers with 26 or more employees is as follows:

  • 7/1/2019 – $14.25
  • 7/1/2020 – $15.00
  • 7/1/2021 – $15.00

For employers with 25 or fewer employees, the schedule is:

  • 7/1/2019 – $13.25
  • 7/1/2020 – $14.25
  • 7/1/2021 – $15.00

Paid Sick Leave Requirements

On top of these wage increases, all employers are required to provide paid sick leave to any employee who works at least two hours a week for the same employer for at least 30 days a year. 

As mentioned earlier, successful small business management involves staying on top of current regulations so that you can avoid running into any fines or legal trouble.

In addition to the amount of the minimum wage increase, you should be aware of the following employer requirements and potential penalties for neglecting the new requirements.

Employer Requirements

As an employer, your requirements include:

  • Paying minimum wage and providing paid sick leave for hours worked within the boundaries of Los Angeles.
  • You must post the “Office of Wage Standards Wage and Sick Time Notice” in a clearly visible place at your job site. This notice must be translated if at least five percent of employees speak a language other than English.
  • You must keep payroll records for a minimum of four years.
  • You must provide employees with your business’ name, address, and phone number at the time of hire.

Lastly, you are not permitted to retaliate against employees for exercising their rights dictated by the Minimum Wage and Office of Wage Standards Ordinances.

Potential Penalties for Employers

First and foremost, any employer who violated the above requirements is responsible for the payment of back wages plus $100 for each day that the violation occurred.

Lastly, you should know that The Department of Public Works, Bureau of Contract Administration, is the agency that will implement this minimum wage ordinance.

This agency will investigate any claims made against you in the case that you violate any of your requirements as an employer.

With these new regulations, proper payroll management and practices are more critical than ever. Changing wages can easily impact the financials of any size business.

At ATPP, we specialize in helping businesses in Southern California accurately and effectively manage their payroll.

Feel free to contact us today with any questions or to take advantage of our professional services.