City of Los Angeles Healthcare Workers Minimum Wage Ordinance – JD Supra

In the wake of the COVID-19 pandemic, Los Angeles City Council has approved an ordinance to increase compensation for healthcare workers, who they have referred to as “the backbone of the COVID-19 response.” The City Council has indicated that adequate compensation will help address the burnout, retention challenges, and worker shortages affecting healthcare workers in Los Angeles. It is anticipated that the mayor will sign the ordinance. The ordinance will become effective 30 days after the mayor’s signature.
 Minimum Wage Increased to $25
On the effective date of the ordinance, the minimum wage for covered employees will be $25 per hour. On January 1, 2024, and annually thereafter, the minimum wage will increase based on the annual increase in the cost of living, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) for the Los Angeles metropolitan area (Los Angeles-Riverside-Orange County, CA), which is published by the Bureau of Labor Statistics.
Employers are expressly barred from funding the wage increase by laying off healthcare workers, reducing their hours, reducing their vacation, healthcare, or other non-wage benefits, or increasing charges they incur for parking or work-related materials and equipment.
Covered Facilities and Employers
“Healthcare Worker” is defined as an Employee who is employed to work at or by a Covered Healthcare Facility to provide patient care, healthcare services, or services supporting the provision of healthcare. “Healthcare Worker” includes a clinician, professional, non-professional, nurse, certified nursing assistant, aide, technician, maintenance worker, janitorial or housekeeping staffperson, groundskeeper, guard, food service worker, laundry worker, pharmacist, nonmanagerial administrative worker and business office clerical worker, but does not include a manager or supervisor.
“Covered Healthcare Facility” means the following types of facilities, provided that they are privately owned and are located within the boundaries of the City of Los Angeles:
One-Year Waiver
If an employer can demonstrate by substantial evidence that compliance with the ordinance would raise substantial doubt about the employer’s ability to continue to operate the facility, a court may grant a one-year waiver from the $25 per hour minimum wage requirement.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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