A. Penalties. An Employer who violates the Minimum Wage Ordinance, the Fair Work Week Ordinance, or this article, or any portion thereof, shall be liable to the City for a penalty of up to $50 per day that either wages, Predictability Pay, or Sick Time Benefits were unlawfully withheld from an Employee. A violation for unlawfully withholding wages, Predictability Pay, or Sick Time Benefits shall be deemed to continue from the date immediately following the date that the wages were due and payable as provided in Part 1 (commencing with Section 200) of Division 2 of the California Labor Code, to the date immediately preceding the date the wages are paid in full.
B. Administrative Fines. An administrative fine payable to the City may be assessed for a violation of any provision of the Minimum Wage Ordinance, the Fair Work Week Ordinance, or this article as specified below. The administrative fine may be assessed by means of a Notice of Correction issued to the Employer by the Division.
VIOLATION AND FINE AMOUNT
Up to $500 | |
Failure to allow access to payroll records – Municipal Code Section 188.03 B. | Up to $500 |
Up to $500 | |
Failure to maintain payroll records or to retain payroll records for four years – Municipal Code Section 188.03.B. | Up to $500 |
Failure to maintain records required by the Fair Work Week Ordinance for three years – Municipal Code Section 185.09 A. | Up to $500 |
Up to $500 | |
Up to $1,000 | |
Up to $500 | |
Up to $500 | |
Failure to submit documents or information to the Division within 30 days of the request – Municipal Code Section 188.05 B. | Up to $500 |
Failure to post Notice of Correction to employees – Municipal Code Section 188.06 D. | Up to $500 |
C. Calculation of Administrative Fines. Each and every day that a violation exists constitutes a separate and distinct violation. Any subsequent violation of the same provision by the same Employer within three years of a prior Notice of Correction may result in a 50 percent increase in the maximum administrative fine allowed.
D. Payments to City; Due Date; Late Payment Penalty. Administrative fines and City penalties shall be payable to the City of Los Angeles and due within 30 days from the date of the Notice of Correction. The failure of any Employer to pay an administrative fine or City penalty within 30 days may result in the assessment of an additional late fee. The amount of the additional late fee shall be 10 percent of the total amount of the administrative fine or City penalty assessed for each month the amounts are unpaid, compounded to include already accrued late administrative fines and City penalties that remain unpaid.
E. Penalties and Fines under Section 188.07 and 188.08. The Division shall base its imposition of penalties and administrative fines for non-compliance with the city’s laws after considering factors, including but not limited to: 1) the extent of harm caused by the violation; 2) the nature and persistence of the violation; 3) the length of time over which the violation occurs; 4) the frequency of past violations; 5) any action taken to mitigate the violation; and 6) the financial burden to the Employer.
F. Grace Period for Fair Work Week Violations. The provisions of this section shall not apply to violations of the Fair Work Week Ordinance that occur during the first 180 days after the effective date of this ordinance. During this period, the Division shall only issue written warnings to Employers.