Table 1

Comparison of progression of minimum wage ordinances in Seattle and Los Angeles (New York City minimum wage preempted by state)

 

Seattle Los Angeles
Types of employees covered
SeaTac living wage ordinance: Hospitality and transportation workers Original proposal by Mayor Garcetti: All employees who work in Los Angeles (except state and federal government employees and the self-employed)
  Initial ordinance (pre-harmonization): “Employee” means “employee,” as defined under Section 12A.28.200. Employee does not include individuals performing services under a work study agreement Final 2016 minimum wage enforcement ordinances: Any individual who in any particular week performs at least two hours of work within the city of Los Angeles for an employer, regardless of whether the employee is full time, part time, seasonal, or temporary
  Post-harmonization: Includes most full-time, part-time, and temporary workers

Employer definition
SeaTac living wage ordinance: No language—Ordinance applies to hotels employing 30 or more workers; food service or retail operations employing 10 or more non-managerial, nonsupervisory employees; and transportation employers that employ 25 or more non-managerial, nonsupervisory employees Final 2016 minimum wage enforcement ordinances:

  • Large—26 or more employees
  • Small—25 or fewer employees
Initial ordinance (pre-harmonization): 

  • Schedule 1—More than 500 employees in the US, and “all franchisees associated with a franchisor or a network of franchises with franchisees that employee more than 500 employees in aggregate in the US”
  • Schedule 2—500 or fewer employees in the US
Post-harmonization: 

  • Schedule 1—More than 500 employees worldwide, and “all franchisees associated with a franchisor or a network of franchises with franchisees that employee more than 500 employees in aggregate”
  • Schedule 2—500 or fewer employees worldwide
Phase-in periods (by business size)
SeaTac living wage ordinance: All covered businesses must begin paying $15 hourly wage on January 1, 2014; living wage adjusted for inflation each following January 1. Original proposal by Mayor Garcetti:

  • 2015—$10.25
  • 2016—$11.75
  • 2017—$13.25
  • 2018 and on—Indexed to inflation
Initial ordinance (pre-harmonization): See Table 2 Final 2016 minimum wage enforcement ordinances:

  • July 1, 2016—$10.50 (large)
  • July 1, 2017—$12.00 (large), $10.50 (small)
  • July 1, 2018—$13.25 (large), $12.00 (small)
  • July 1, 2019—$14.25 (large), $13.25 (small)
  • July 1, 2020—$15.00 (large), $14.25 (small)
  • July 1, 2021—$15.00 (small)
  • July 1, 2022 (and annually thereafter)—Indexed to inflation based on the CPI-W for the LA metro area
Post-harmonization: See Table 2
Counting of non-wage income: spending on health care benefits, commissions, tip credits, bonuses
SeaTac living wage ordinance: Tips and service charges must go directly to the workers “who perform services for the customers from whom the tips are received or the service charges are collected” Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization): Commissions, piece-rate, and bonuses are included in wages; tips and employer payments toward a medical benefits plan do not count toward wages. Large employers that paid toward employee’s medical benefits had slower phase-in for first two years, but beginning in 2019, all large employers on same schedule regardless of benefit payments. Employees of small employers who pay toward the employee’s medical benefits and/or employees of small employers who earn tips also have a slower phase-in; in 2025, all employees of small employers will have same minimum wage rate, regardless of benefits/tips Final 2016 minimum wage enforcement ordinances: “Wage” means all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation, as defined in California Labor Code Section 200(a). An employer may not use tips, gratuities, or the cost of medical benefits to offset the amount required to be paid to the employee in wages
Post-harmonization: Same as pre-harmonization  
Service charges allowed?
SeaTac living wage ordinance: Yes Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization): Yes Final 2016 minimum wage enforcement ordinances: No language
Post-harmonization: Yes
Damages, fines, and penalties
SeaTac living wage ordinance: “Any person claiming violation of this chapter may bring an action against the employer in King County Superior Court to enforce the provisions of this Chapter and shall be entitled to all remedies available at law or in equity appropriate to remedy any violation of this chapter, including but not limited to lost compensation for all Covered Workers impacted by the violation(s), damages, reinstatement and injunctive relief. A plaintiff who prevails in any action to enforce this Chapter shall be awarded his or her reasonable attorney’s fees and expenses” Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization):
Employee remedies:      

  • Shall include full payment of unpaid wages and accrued interest

Civil penalties:

  • First violation—Up to $500
  • Second violation—Up to $1,000 per employee (or an amount equal to 10% of unpaid wages, whichever is greater)
  • Third violation—Up to $5,000 per employee (or an amount equal to 10% of unpaid wages, whichever is greater)
  • Maximum civil penalty is $20,000 per employee
  • $1,000-$5,000 for willfully resisting, preventing, impeding, or interfering with investigations
  • $125 (first violation) to $250 (subsequent violations) for violating the notice and posting requirements
 Final 2016 minimum wage enforcement ordinances:

  • “Every Employer who violates this article . . . Shall be liable to the Employee whose rights were violated for any and all relief, including, but not limited to, the payment to each Employee of wages unlawfully withheld . . . and an additional penalty up to $120 per day that each of the violations occurred or continued”
  • “Every Employer who violates this article, or any portion thereof, shall be liable to the City for a penalty of up to $50 per day that wages . . . were unlawfully withheld from an Employee”
  • Employers may be fined up to $500 payable to the city if failing to…
    • post notice of the LA minimum wage rate
    • allow access to payroll records
    • maintain payroll records or to retain payroll records for four years
    • allow access for inspection of books and records or to interview employees
    • provide employer’s name, address, and telephone number in writing
    • cooperate with the division’s investigation
    • post Notice of Correction to employees
  • Employers may be fined up to $1000 (per employee) for retaliating against employees for exercising rights under the article
Statute of limitations
SeaTac living wage ordinance: No language Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization): Investigation must commence within 3 years of the alleged violation Final 2016 minimum wage enforcement ordinances: No language
Post-harmonization: Same as pre-harmonization
Private right of action?
SeaTac living wage ordinance: Yes Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization): No Final 2016 minimum wage enforcement ordinances: Yes
Post-harmonization: Yes
Anti-retaliation provisions?
SeaTac living wage ordinance: Yes Original proposal by Mayor Garcetti: No language
Initial ordinance (pre-harmonization): Yes Final 2016 minimum wage enforcement ordinances: Yes
Post-harmonization: Yes

Copy the code below to embed this chart on your website.

Previous chart: «

Next chart: »