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West Hollywood, California, enacts minimum wage ordinance

12/02/21

Author: ADP Admin/Monday, November 29, 2021/Categories: Compliance Corner , State Compliance Update, California

West Hollywood, California has enacted an ordinance that establishes a local minimum wage. The ordinance takes effect on January 1, 2022 and applies to any employee who works at least two hours per week in West Hollywood.

Important Definitions:

“Employee” means any person who in a particular week performs at least two hours of work within the geographic boundaries of the City for an Employer; and qualifies as an employee entitled to payment of a minimum wage from any Employer under the California Labor Code and wage orders published by the California Industrial Welfare Commission.

“Employer” means any person, including a corporate officer or executive, association, organization, partnership, business trust, and limited liability company or corporation, 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.

Minimum Wage:

Under the ordinance, the minimum wage will increase on January 1, 2022, July 1, 2022, January 1, 2023 and July 1, 2023 as follows:

January 1, 2022

Hotel workers                                                          $17.64 per hour

Employers with 50 or more employees          $15.50 per hour

Employers with 49 or fewer employees        $15.00 per hour

July 1, 2022

Hotel workers                                                          To be determined based on inflation

Employers with 50 or more employees         $16.50 per hour

Employers with 49 or fewer employees        $16.00 per hour

January 1, 2023

Hotel workers                                                          To be determined based on inflation

Employers with 50 or more employees         $17.50 per hour

Employers with 49 or fewer employees       $17.00 per hour

July 1, 2023

Hotel workers                                                         To be determined based on inflation

Employers with 50 or more employees         $17.64 per hour + CPI from July 1, 2022

Employers with 49 or fewer employees       $17.64 per hour + CPI from July 1, 2022

Exceptions:

Employees who are defined as “Learners” may be paid not less than 85% of the minimum wage rounded to the nearest nickel during their first 160 hours of employment. “Learners” are defined as: “Employees during their first 160 hours of employment working in occupations in which they have no previous similar or related experience. A learner may be of any age.”

Note: California does not allow the use of a tip credit when paying tipped employees.

The ordinance also requires the following actions by the employer:

  • Post in a conspicuous place at any workplace or job site where any employee works, the bulletin published each year by the City informing employees of the current minimum wage rate and of their rights.
  • Post notices in English, Spanish, and any other language spoken by at least five percent (5%) of the employees.
  • Provide to each employee at the time of hire, the employer’s name, address, and telephone number in writing.
  • Retain payroll records pertaining to employees for no less than three years.

 

Compliance Recommendations:

West Hollywood, California employers should pay all covered non-exempt employees at least in accordance with the scheduled amounts effective January 1, 2022. Employers should also post an up-to-date minimum wage notice in the workplace once provided by West Hollywood. Please contact your dedicated service professional with any questions.

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Tags: 12/02/21

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