July 1 2016 Everything Goes Up In Costs In Los Angeles

By Michael Lodge

I received the letter below from the Los Angeles Chamber of Commerce regarding minimum wage increases and sic time days required on businesses in Los Angeles.  Please see below.

We wanted to make sure you are aware of the increases in the minimum wage and paid sick leave that will take effect on July 1, 2016 for employers in the City of Los Angeles and in the unincorporated portions of L.A. County. 

As of July 1, the hourly minimum wage for businesses with 26 or more employees will rise to $10.50.  Businesses with 25 or fewer employees have an additional year to comply.  Also as of July 1, a mandate requiring six days (48 hours) of paid sick leave per year for each employee will go into effect for employers, regardless of size. 

The current minimum wage for employers in the City of L.A. and the unincorporated portion of L.A. County is $10.00 per hour, and the current paid sick leave requirement is three days per year. 

For the City of L.A. ordinance click here or for FAQs click here.  For employers in the unincorporated County of L.A. click here for the ordinance and here for FAQs. 

If you have other questions, you can contact the L.A. City Bureau of Contract Administration at 213.847.1922 or visit bca.lacity.org or the L.A. County Department of Consumer and Business Affairs at 800.593.8222 or visit dcba.lacounty.gov.

The Chamber lobbied extensively against the minimum wage increase which will reach $15.00 per hour in 2020.  The original proposal for paid sick leave was 12 days per year and we were successful in reducing that number to six. 

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So those of us in Los Angeles are stuck with a government over reach and exhausting small business employer burdens.  This raises prices on everything in Los Angeles.