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SEC. 187.02. PAYMENT OF SICK TIME BENEFITS AND MINIMUM WAGE TO EMPLOYEES.
 
   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.