The minimum wage for small businesses in Los Angeles will increase to $15 on Thursday. The City Council passed the measure last year and has rolled it out gradually over the next five years. The rate will increase each year, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. The minimum wage rate will be announced on February 1st each year and take effect on July 1.
It is important to know that more than 600,000 Angelenos make less than the minimum wage. Los Angeles County’s minimum wage guidelines are administered by the Bureau of Contract Administration. The law requires companies to make adjustments to their wages every year to keep up with inflation. In the county, approximately thirty percent of workers earn less than minimum wage, which amounts to $26-28 million per week. Despite this staggering number, the new minimum wage is a major step forward for workers and business owners.
California’s minimum wage is set by state and federal law, but local entities can enact laws regarding minimum wage rates. Recent efforts have led to higher minimum wage rates in several cities. However, multiple sources of government coverage can create conflicts. Thus, it is better to have a stricter standard for employers. This is in the best interests of both employees and employers. It is important to note that LA Work Wages is not a substitute for the federal minimum wage.