the City of Los Angeles's Minimum Wage Ordinance (MWO) imposes higher hourly minimums than the statewide level. The City will enforce the MWO through the Office of Wage Standards (OWS) via Rules and Regulations published July 22, 2016. The Rules and Regulations contain many key points, including:
Who is an employee.
The OWS has the power to determine whether a worker fits the definition of "Employee" subject to the MWO. As stated in Regulation No. 1 (p. 3), an Employee is "any individual who in any particular week performs at least two (2) hours or work within the geographic boundaries of the City for an Employer." The Rules and Regulations also instruct employers how to track and document each Employee's "hours worked" within the City's boundaries, not necessarily an easy task for some workers.
Small business deferral.
Employers with 25 or fewer employees may defer providing the MWO's minimum wage by one year, i.e., until July 1, 2017. However, OWS requires all such employers interested in the deferral to complete and retain Form MW-2. See City's FAQs Nos. 39-45 and Rules and Regulations (pp. 16-18) for more information.
Large non-profit corporation deferral.
Non-profits with 26 or more employees may defer complying with the City's minimum wage rate until July 1, 2017 so long as the non-profit submits mandatory Form MW-1 for OWS approval. See City's FAQs Nos. 34-38 and Rules and Regulations (pp. 13-15) for more information.
Non-profit transitional employer exemption.
Any non-profit organization providing transitional jobs for long-term unemployed workers as further defined in MWO Section 187.02(F) may obtain an exemption from the City's minimum wage rate for each transitional worker's first 18 months of employment. The non-profit organization must submit mandatory Form MW-3 to OWS for approval. For more information, see Rules and Regulations (p. 12).
o City of Los Angeles Minimum Wage Increasing Annually from 2016 to 2020
o City of Los Angeles Casts Light on its New Minimum Wage and Paid Sick Leave Ordinance (July, 2016).
If you would like further, more detailed information,
If you would like further, more detailed information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
September 12, 2016
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