New West Hollywood Minimum Wage Increase Kicks In July 1st

New minimum wage increase and paid time off/sick pay kicks in July 1, 2022, in the city of West Hollywood. Full time employees for all businesses are to be provided at least 96 compensated hours and 80 uncompensated hours per year for sick leave, vacation, or personal necessity. Part-time employees are to be provided compensated and uncompensated hours in increments proportional to that accrued by someone who works 40 hours in a week.

Paid time off may be used for paid sick leave, vacation or personal necessity, and an employer may not “unreasonably” deny an employee’s request to use the paid time off.  Unpaid time off does not accrue beyond 80 hours, and like paid time off, an employer may not “unreasonably” deny an employee’s request to use it.  Unpaid time off may be used as sick leave after an employee has exhausted paid time off for either the employee or his or her immediate family member’s illness as defined by the CFRA.

Both paid time off and unpaid time off are to accrue weekly for full-time employees and proportionally to full-time work for employees working less than 40 hours in any week for the employees’ work in West Hollywood starting July 1, 2022. This ordinance applies to employees who work remotely from their homes or locations in West Hollywood, even if their employer is outside of West Hollywood.  However, it does not include those that traverse West Hollywood without stopping.

The ordinance provides a private right of action for employees to prosecute violations, including a $100/day penalty/day of violation of the ordinance, attorneys’ fees, and if the violation is intentional, the potential recovery trebles.

The Ordinance creates a hotel worker minimum wage of $17.64 per hour starting on January 1, 2022, and a phased approach for minimum wage increases for large businesses and small businesses starting on January 1, 2022 with adjustments every six months to create consistency in the minimum wage citywide by July 1, 2023. Starting on July 1, 2023, the citywide minimum wage for all businesses will be $17.64 (plus two cost of living adjustments as part of the phased schedule for increases). Following that, the citywide minimum wage for all businesses will be increased each July 1 by the Annual Consumer Price Index (CPI-W) Adjustment.

Every Employer in the City of West Hollywood shall 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 under the Ordinance. Every Employer shall post notices in English, Spanish, and any other language spoken by at least five percent (5%) of the Employees. Every Employer shall also provide to each Employee at the time of hire, the Employer’s name, address, and telephone number in writing.

A one-year, one-time, wage increase waiver may be granted to businesses who are able to demonstrate that compliance with the payment of the Citywide Minimum Wage increase would force the business to: file bankruptcy or a shutdown, reduce its workforce by more than twenty percent (20%), or curtail its Employees’ total hours by more than thirty percent.

Alternatively, a three-month waiver may be granted to businesses who are able to demonstrate that compliance with the leave provisions of the Citywide Minimum Wage would cause an implementation hardship due to my business’ existing payroll and human resources processes and platforms the business has in place. Businesses may apply for up to two three-month waiver (maximum of six months)

To file your waiver application, please follow these steps:

1. Notify all your employees, in writing, of the business’ intent to file a Waiver Application
2. Compile all required documents – incomplete applications will be denied
3. Submit the Waiver Application and all required documents by selecting the waiver for payment of minimum wage or leave provisions:

• Payment of Minimum Wage – Waiver Application
• Leave Provisions – Waiver Application

For questions regarding the Waiver Application, please email [email protected].