On June 10, 2015, the Los Angeles City Council voted to increase the minimum wage to $15.00 an hour by 2020. Los Angeles Mayor Eric Garcetti signed the measure on Saturday, June 13, 2015. Employers are required to increase their minimum wages in steps, starting with an increase to $10.50 an hour by July 1, 2016. Even businesses located outside of Los Angeles should take note of this change, as hours worked within the city limits may be subject to the increased minimum wage rates. Meanwhile, the state minimum wage, which is currently $9.00 an hour, will increase to $10.00 an hour on January 1, 2016.
California employers are subject to different minimum wage rates in different jurisdictions across the state and are encouraged to seek the advice of counsel to ensure compliance. Changes to minimum wage rates have far-reaching consequences and a prompt, proactive approach is recommended.
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