City of Los Angeles Minimum Wage Set to Increase on July 1, 2019 | FFS Insights

California law currently requires that employers with 25 or fewer employees pay those employees a minimum of $11.00 per hour. Where there are 26 or more employees, the State minimum hourly wage is $12.00. On January 1, 2020, these rates will increase to $12.00 per hour and $13.00 per hour, respectively.

In addition, the City of Los Angeles has its own independent minimum wage requirement, which is higher than the California rate. Unlike California’s rate increases, which take effect on the first of the year, the City rate increase is set to take effect on July 1, 2019.

As of July 1, 2019 the City of Los Angeles minimum wage rate will be $13.25 per hour for employers with 25 or fewer employees and $14.25 per hour where there are 26 or more employees.

With limited exception, the City minimum wage covers all employees who perform at least two hours of work in a given week within the geographic boundaries of the City. To determine whether your workplace falls within City limits, please refer to: http://neighborhoodinfo.lacity.org.

Employers should ensure that affected employees’ wages are brought to the new City of Los Angeles minimum. Note that gratuity and tips may not be counted toward the minimum wage.

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This alert is made available for educational purposes and to provide general information on current legal topics, not to provide specific legal advice. The publication of this alert does not create any attorney-client relationship and should not be used as a substitute for competent legal advice from a licensed professional attorney.