On June 10, 2015, the Los Angeles City Council voted to increase the minimum wage to $15.00 an hour by 2020. Los Angeles Mayor Eric Garcetti signed the measure on Saturday, June 13, 2015. Employers are required to increase their minimum wages in steps, starting with an increase to $10.50 an hour by July 1, 2016. Meanwhile, the state minimum wage, which is currently $9.00 an hour, will increase to $10.00 an hour on January 1, 2016.
Employer’s doing business in more than one city will have different minimum wages based on city, not state regulations. California employers need to stay abreast of the changes in minimum wages. Minimum wages affect the salary test for exemptions and for employers to maintain the exemptions they need to meet the salary test. LA is the fourth City to pass a higher minimum wage than required by the state and federal requirements.