10 Aug 2016


August 10, 2016Uncategorized


This new CITY of Los Angeles ordinance is totally different from the State of California Wage & Hour Law that just went into effect.  Your business payroll and payroll information will be affected by the new CITY of Los Angeles ordinance commencing July 1, 2016* and/or July 1, 2017, and July 1, 2018, 2019, 2020 and 2021.  On July 1, 2022 and annually thereafter the minimum wage will increase based on the CPI (Consumer Price Index), as set forth in “D” of the CITY ordinance.

The size of your business, whether for-profit or nonprofit, will be determined by the average number of employees employed during the previous calendar year.

The CITY ordinance will require you to adapt or adopt new record-keeping policies and procedures.  It is our suggestion, as your information management service provider, that you review, update and maintain your company payroll information so that you are compliant.  The new ordinance provides for fines for violations, with a fine imposed based upon each employee and each day the employer is not in compliance. It also allows for civil enforcement of fines and penalties with a per-violation penalty of $120 for each employee per day.  It further grants authority to the police Commission to deny, revoke or suspend a police permit issued to an entity found to have committed “wage theft.”  This includes failure to comply with the sick leave ordinance.

If you are located in the City of Los Angeles, you might consider discussing this new ordinance with your labor law attorney and CPA with focus on the following:

  • Paid sick time and/or PTO policies
  • Transitioning to a PTO policy
  • Deciding whether to use an accrual or lump-sum method or another PTO policy
  • Review of attendance and disciplinary policies
  • Auditing timekeeping, payroll and benefits systems
  • Installing a system to send notices, post notices, etc.

You can get a copy of the ordinance by going online and requesting a copy of Ordinance # 184320 or by contacting me, Dale Anesi, Director – Systems, and I will email you a copy of the ordinance.

* Depending on employee count. 26 or more as of July 1, 2016.  Up to 25 employees as of July 1, 2017.