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Upcoming Minimum Wage Changes in Los Angeles: What Employers Need to Know

Starting July 1, 2025, the City of Los Angeles will implement new minimum wage rates that affect a broad range of employers. It’s crucial for businesses to understand these changes to ensure compliance and maintain fair labor practices.

Citywide Minimum Wage Increase

Effective July 1, 2025, the general minimum wage in Los Angeles will increase from $17.28 to $17.87 per hour. This adjustment, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), applies to all employees who work at least two hours per week within the city’s boundaries.

Hotel and Airport Worker Minimum Wage Increase

For hotel and airport workers, the minimum wage will increase to $22.50 per hour on July 1, 2025. This is part of the “Olympic Wage Ordinance,” which plans incremental increases leading up to $30 per hour by 2028.

Note: A referendum petition has been filed challenging this ordinance. If the petition is certified, the wage increase may be suspended, and the rate could revert to $21.01 per hour. Employers should stay informed on the outcome.

Health Benefit Requirements for Hotel Workers

Starting July 1, 2026, hotel employers who do not provide health benefits must pay an additional hourly wage to cover health benefit costs. This aims to ensure that all hotel workers have access to health coverage.

Paid Sick Leave Entitlement

Under the city’s ordinance, employees are entitled to 48 hours of paid sick leave every 12 months. Employers can provide this leave upfront or have it accrue at a rate of one hour per every 30 hours worked.

Employer Compliance Checklist

Need Assistance?

Navigating these changes can be complex. At Velin & Associates, Inc., we specialize in providing comprehensive accounting services in Los Angeles. Our team of experienced CPAs and tax advisors is here to help you ensure compliance and optimize your business operations. For more information about our services, please visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org

Let us help you navigate these changes smoothly and keep your business on the path to success!



Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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