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New laws enacted on July 1 may lead to wage disputes

On Behalf of | Jul 7, 2016 | Firm News, Wage And Hour Laws

Any time new wage laws go into effect, there will typically be a transitional period while employers move toward compliance. This invariably can lead to wage disputes, as many employers may not implement the new policies in a timely manner. A new law in Los Angeles could herald the beginning of increased minimum wages for the rest of California, and readers may be interested in how this change may positively affect their earning potential and guaranteed paid leave.

Starting on July 1, employers with more than 25 employees will now be required to pay a minimum wage of $10.50 per hour. Additionally, the new legislation will require companies in the city and county of Los Angeles to offer a minimum or six days of paid leave versus the current state-mandated three days. This new law will impact workers in the nearby cities of Pasadena and Santa Monica as well.

This is the first step of the gradual increase of the minimum wage to $15 per hour, which was passed by state legislators in March. Businesses that have fewer than 25 workers have an extra year to implement this change, in order to limit the financial impact that the hike may have on smaller companies. All businesses with more than 25 workers will be required to reach the $15 per hour minimum wage level by 2020.

During this time of transition, California workers in minimum wage jobs may be involved in wage disputes while businesses attempt to make their policies compliant. It is important for workers in minimum wage jobs to be educated on the most recent changes and policies. Workers may benefit from advice provided by a California attorney who is aware of the most recent changes and issues facing minimum wage workers.

Source:, “Higher minimum wage goes into effect in Los Angeles“, Elizabeth Hsing-Huei Chou, July 1, 2016



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