West Hollywood hotel workers now earn $ 17.64 an hour, as a law passed in early November 2021 goes into effect that pays some of the city’s workers the highest minimum wage in the United States.
This minimum wage will be adjusted each year according to inflation, based on the consumer price index, to keep pace with the cost of living. The first of these adjustments comes on July 1, 2022.
It also contains provisions for paid leave required due to illness, vacation and personal needs.
The ordinance, passed by West Hollywood City Council on Nov. 3, was originally proposed as a minimum wage increase reserved for employees in the hospitality industry.
West Hollywood is preparing to vote on a proposal that would raise the minimum wage in the city to $ 17.64, the highest minimum wage rate in the United States, Mekahlo Medina reported for Today in LA on Wednesday, November 3, 2021.
Council members then proposed to extend the wage hike to all workers in West Hollywood.
For now, only hotel employees have a new minimum wage of $ 17.64. Employees in other industries will receive more gradual pay increases every six months, according to the ordinance.
The goal is to increase their minimum wage to match that currently in place for hotel employees by July 2023.
Workers in other industries who work in “large firms”, described as firms with 50 or more employees, now earn a minimum wage of $ 15.50 an hour, while workers in “small firms”, less than 50 employees, now earn $ 15.00 per hour. .
On July 1, 2022, wages for workers in other industries will rise again. Employees of large companies will earn $ 16.50 an hour, and employees of small businesses will earn $ 16.00 an hour.
On New Years Day 2023, workers in large businesses will earn $ 17.50 an hour and receive the inflation-adjusted minimum wage by July 2023. Workers in small businesses will earn $ 17.00 per hour. January 1, 2023 and will receive the inflation adjusted minimum. salary by July 2023.
West Hollywood’s large hotel and restaurant industry means that a number of workers will benefit from the increase in hourly wages.
But some business owners, still reeling from the blows their businesses suffered at the start of the pandemic, have expressed concern about the increased operating costs caused by rising wages.
“That’s a 30% pay rise,” Cary Mosier, owner of Gracias Madre, a restaurant in the city, said in November before the ordinance was voted. “It’s already a challenge to operate a restaurant under normal circumstances. “
“Now they are driving up labor costs, and we are still operating with money borrowed from the government, dealing with capacity issues and all the challenges of the pandemic,” he continued. .
But the city argues that $ 17.64 is actually just a living wage, essential for people who work 40 hours a week and need to learn the basics of life.
The minimum wage in California, as of January 1, 2022, is $ 14.00 an hour for employees of companies with 25 or fewer employees, and $ 15.00 an hour for employees of companies with 25 or fewer employees. 26 or more employees.
That’s higher than the federal minimum wage requirement of $ 7.25 an hour, mandated by the Fair Labor Standards Act.
This federal law also states that an employer of a tip employee is only required to pay $ 2.13 an hour in direct wages if the remainder of the $ 7.25 is in tips; if the tips don’t match that, the employer must pay the difference, according to the US Department of Labor.