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The following definitions shall apply to this article:
A. “City” means the City of Los Angeles.
B. “Designated Administrative Agency (DAA)” means the Office of Wage Standards of the Bureau of Contract Administration, which shall bear administrative responsibilities under this article.
C. “Employee” means any individual who:
1. In a particular week performs at least two hours of work within the geographic boundaries of the City for an Employer; and
2. Qualifies as an Employee entitled to payment of a minimum wage from any Employer under the California minimum wage law, as provided under Section 1197 of the California Labor Code and wage orders published by the California Industrial Welfare Commission.
D. “Employer” means any person, as defined in Section 18 of the California Labor Code, including a corporate officer or executive, who directly or indirectly or through an agent or any other person, including through the services of a temporary service or staffing agency or similar entity, employs or exercises control over the wages, hours or working conditions of any Employee.
E. “Non-Profit Corporation” means a non- profit corporation, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and, if a foreign corporation, in good standing under the laws of the State of California, which corporation has established and maintains valid non-profit status under Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder.
F. “Person” means any person, association, organization, partnership, business trust, limited liability company or corporation.
G. “Wage” means all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation, as defined in California Labor Code Section 200(a).
A. An Employer shall pay an Employee a wage of no less than the hourly rates set under the authority of this article.
B. Employers with 26 or more Employees shall provide Sick Time Benefits pursuant to Section 187.04 and pay a wage of no less than the hourly rates set forth:
1. On July 1, 2016, the hourly wage shall be $10.50.
2. On July 1, 2017, the hourly wage shall be $12.00.
3. On July 1, 2018, the hourly wage shall be $13.25.
4. On July 1, 2019, the hourly wage shall be $14.25.
5. On July 1, 2020, the hourly wage shall be $15.00.
C. Employers with 25 or fewer Employees shall provide Sick Time Benefits pursuant to Section 187.04 and pay a wage of no less than the hourly rates set forth:
1. On July 1, 2017, the hourly wage shall be $10.50.
2. On July 1, 2018, the hourly wage shall be $12.00.
3. On July 1, 2019, the hourly wage shall be $13.25.
4. On July 1, 2020, the hourly wage shall be $14.25.
5. On July 1, 2021, the hourly wage shall be $15.00.
D. On July 1, 2022, and annually thereafter, the minimum wage will increase based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles metropolitan area, which is published by the Bureau of Labor Statistics. The DAA shall announce the adjusted rates on February 1st and publish a bulletin announcing the adjusted rates, which shall take effect on July 1st of each year. (Amended by Ord. No. 187,456, Eff. 5/8/22.)
E. Employees who are 14-17 years of age shall be paid not less than 85 percent of the minimum wage required by Section 187.02 and rounded to the nearest nickel during their first 160 hours of employment. After more than 160 hours of employment, Employees who are 14-17 years of age shall be paid the applicable minimum wage pursuant to this article.
F. A Non-Profit Corporation Employer, which also qualifies as a Local Transitional Employer, as defined by Los Angeles Administrative Code (LAAC) Section 10.25.1(m) (“Non-Profit/Local Transitional Employer”), can apply to the DAA for a limited exemption to this article. This limited exemption shall allow a “Non-Profit/Local Transitional Employer” to pay an Employee holding a Transitional Job, as defined by LAAC Section 10.25.1(s), wages less than those required under Section 187.02 during the first 18 months of employment in the Transitional Job. The intent of this limited exemption is to create opportunities for the hardest to employ in the City, and shall be construed strictly in its application to an Employer seeking to qualify as a “Non-Profit/Local Transitional Employer”. (Amended by Ord. No. 188,111, Eff. 3/27/24.)
G. For purposes of this article, on July 1, 2016, the size of an Employer’s business or Non-Profit Corporation shall be determined by the average number of Employees employed during the previous calendar year. The Employer shall comply solely under either Section 187.02 B. or C., until July 1, 2022, when the rate will be the same under both sections.
H. For purposes of this article, the size of an Employer’s new business or Non-Profit Corporation in operation after July 1, 2016, shall initially be determined by the number of Employees employed during its first pay period. The Employer shall comply with wages due under the current year of operation under either Section 187.02 B. or C., until July 1, 2022, when the rate will be the same under both sections.
The DAA shall establish a procedure to allow an Employer that is a Non-Profit Corporation on July 1, 2016, with 26 or more Employees to qualify for the deferral rate schedule specified in Section 187.02 C. A Non-Profit Employer seeking the deferral must establish by compelling evidence that:
A. The chief executive officer or highest paid employee earns a salary which, when calculated on an hourly basis, is less than five times the lowest wage paid by the corporation; or
B. It is a Local Transitional Employer as defined in Section 10.25.1(m) of the Los Angeles Administrative Code; or (Amended by Ord. No. 188,111, Eff. 3/27/24.)
C. It serves as a child care provider; or
D. It is funded primarily by city, county, state or federal grants or reimbursements.
If a Non-Profit Corporation Employer loses its deferral status at any time after July 1, 2016, it shall pay wages due in the current year under Section 187.02 B.
A. Every Employee who, on or after July 1, 2016, works in the City for the same Employer for 30 days or more within a year from the commencement of employment is entitled to paid sick leave.
B. Paid sick leave shall accrue on the first day of employment or July 1, 2016, whichever is later.
C. An Employee may use paid sick leave beginning on the 90th day of employment or July 1, 2016, whichever is later.
D. Employers must provide sick leave either: 1) by providing the entire 48 hours to an Employee at the beginning of each year of employment, calendar year, or 12-month period; or 2) by providing the Employee one hour of sick leave per every 30 hours worked.
E. Employees will be entitled to take up to 48 hours of sick leave in each year of employment, calendar year, or 12-month period. Accrued unused paid sick leave shall carry over to the following year of employment and may be capped at 72 hours. An Employer may set a higher cap or no cap at all.
F. If an Employer has a paid leave or paid time off policy or provides payment for compensated time off, that is equal to or no less than 48 hours, no additional time is required.
G. An Employer shall provide paid sick leave upon the oral or written request of an Employee for themselves or a family member, as defined by California Labor Code Sections 246.5(a) and 245.5(c), or for any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.
An Employer may require an Employee to provide reasonable documentation of an absence from work for which paid sick leave is or will be used.
H. An Employer is not required to provide compensation to an Employee for accrued or unused sick days upon termination, resignation, retirement, or other separation from employment.
I. If an Employee separates from an Employer and is rehired by the Employer within one year from the date of separation, previously accrued and unused paid sick time shall be reinstated.
No Employer shall discharge, reduce in compensation or otherwise discriminate against any Employee for opposing any practice proscribed by this article, for requesting to use paid sick leave or actually using paid sick leave, for participating in proceedings related to this article, for seeking to enforce the Employee’s rights under this article by any lawful means, or for otherwise asserting rights under this article.
The DAA may promulgate guidelines and rules consistent with this article for the implementation of the provisions of this article. Any guidelines or rules shall have the force and effect of law, and may be relied upon by Employers, Employees and other parties to determine their rights and responsibilities under this article. The DAA may allow an Employer’s established paid leave or paid time off policy or one which provides payment for compensated time off to remain in place and comply with this article even though it does not meet all the requirements in Section 187.04, if the DAA determines that the Employer’s established policy is overall more generous.
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