REMINDER: Los Angeles City Minimum Wage Rising to $10.50 per hour on July 1, 2016

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Federal, State, County and City minimum wages can vary, but employers will be safe if they remember to comply with the highest applicable minimum wage in their location. For auto dealers located in the City of Los Angeles (this includes areas like East and South Los Angeles, Greater Hollywood, and Van Nuys), the minimum wage rises to $10.50 per hour on July 1, 2016. This is a good time to update your pay plans if necessary, and ensure that payroll is aware of the upcoming change. Please note that regardless of where an employer’s place of business is located, any employee who performs at least two (2) hours of work within the City of Los Angeles in a given week must be paid for all hours worked in the City at the City of LA minimum wage rate.

In Los Angeles city, employers with 26 or more employees must pay a wage of no less than the hourly rates set forth below:

  • On July 1, 2016, the hourly wage shall be $10.50. This change occurs on July 1, 2017 for employers with 25 or fewer employees.
  • On July 1, 2017, the hourly wage shall be $12.00. This change occurs on July 1, 2018 for employers with 25 or fewer employees.
  • On July 1, 2018, the hourly wage shall be $13.25. This change occurs on July 1, 2019 for employers with 25 or fewer employees.
  • On July 1, 2019, the hourly wage shall be $14.25. This change occurs on July 1, 2020 for employers with 25 or fewer employees.
  • On July 1, 2020, the hourly wage shall be $15.00. This change occurs on July 1, 2021 for employers with 25 or fewer employees.

Minimum wage in other surrounding areas, such as Orange County rises to $10.50 with the California state minimum wage, on January 1, 2017.