What is the difference between the federal, state and West Hollywood minimum wage laws?

West Hollywood Employers are subject to the federal, state and West Hollywood minimum wage laws. When there are conflicting requirements in the laws, the Employer must follow the stricter standard, the higher minimum wage rate for those employees working within the West Hollywood geographic boundaries. In the case of minimum wage, West Hollywood Employers must pay Employees the rates that is most beneficial to the Employee.

Who does the minimum wage ordinance apply to?

The minimum wage ordinance applies to any employee who works at least two hours in a calendar week within the geographic boundaries of the City of West Hollywood and qualifies as an employee under Section 1197 in the California Labor Code and wage orders published by the California Industrial Welfare Commission. This includes full time, part time, and temporary workers.

Who must comply with the minimum wage ordinance?

All employers with employees in the City of West Hollywood. Employers based outside of West Hollywood but whose employees work in West Hollywood must also comply.

How do I know if my businesses is located in West Hollywood?

You may use the Map of West Hollywood to verify your businesses address. Use the Zoom function to view street addresses within the City of West Hollywood. 

What is defined as a small and large business?

Large business are defined as businesses with 50 or more individual employees and small businesses are defined as businesses with 49 or fewer employees within the United States, regardless of where those employees work.

As of July 2023, there is no difference in wage rates between large or small businesses.

Who is defined as a hotel worker?

A hotel worker is an employee whose primary place of employment is at one or more hotels located within the geographic boundaries of the City of West Hollywood, who is employed directly by a hotel, or by a person who has contracted with a hotel to provide services at the hotel. This includes an employee who works in a restaurant or food and beverage service at a hotel regardless of whether the space is leased, sublet, or hotel-owned.

My business is located on a hotel property, but it is not a hotel. Do I need to pay my workers the hotel wage?

Yes, hotel workers are considered any employee who works for a business that operates or who provides services at the hotel property.

When does the CPI go into effect?

Effective July 1, 2022, and annually thereafter, the City’s minimum wage for hotel workers will increase each July 1 by the annual Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Effective January 1, 2025, and annually thereafter, the City's minimum wage for non-hotel workers will increase each January 1 by the annual Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Does the West Hollywood minimum wage apply to an Employer who isn’t located in West Hollywood but has an Employee performing work in West Hollywood?

Yes. Regardless of where the Employer is located, the Employee must be paid the West Hollywood minimum wage rate and provided compensated and uncompensated benefits to any Employee who performs at least two hours of work in a particular week within the City of West Hollywood for time worked in the City of West Hollywood.

What wage must an Employer pay to a salaried Employee who is exempt from overtime under state law? In other words, must the Employer pay twice the state minimum wage rate or West Hollywood's minimum wage rate?

The City of West Hollywood does not advise Employers on how to comply with California law, including state law governing pay for salaried Employees exempt from overtime. Please contact the Division of Labor Standards and Enforcement, California’s Labor Commissioner or visit their website: http://www.dir.ca.gov/dlse/.

Does an Employer need to provide notice of an increase in the minimum wage?

Yes. Employers are required to post in a conspicuous place at any workplace or job site where any employee works, the official notice published each year by the City informing employees of the current minimum wage rate and of their rights under the Ordinance. Notices shall be posted in English, Spanish, and any other language spoken by at least five percent (5%) of the employees. The City will make notices available at www.weho.org/wage. Additionally, Employers must maintain payroll records pertaining to employees, for no less than three years; and every employer shall provide in writing their name, address, and telephone number to all new and current employees.

Does West Hollywood’s minimum wage cover persons who work in West Hollywood but are not City residents?

Yes. Any qualified Employee is entitled to receive compensation pursuant to West Hollywood’s minimum wage.

Can tips be used to offset West Hollywood’s minimum wage?

No. Under California Labor Code 351, what an employee earns in tips also cannot count toward the minimum wage.

Can medical benefits be used to offset West Hollywood’s minimum wage?

No. Medical benefits cannot be used to offset West Hollywood's minimum wage. 

Can an Employee agree to work for less than West Hollywood’s minimum wage rates or waive their rights to compensated and uncompensated leave?

No. The Ordinance requirements for minimum wage and leave provisions can only be waived through bona fide collective bargaining agreement that contains clear and unambiguous terms setting forth such waiver.

What is a service charge?

Service charges are defined as any separately-designated amount charged and collected by an Employer from customers, that is for service by Employees, or is described in such a way that customers might reasonably believe that the amount is for those services or is otherwise to be paid or payable directly to Employees, including those charges designated on receipts, invoices, or billing statements under the term “service charge,” “table charge,” “porterage charge,” “automatic gratuity charge,” “healthcare surcharge,” “benefits surcharge,” or similar language. Service Charge does not include a tip or gratuity as defined under State or federal law.

My business charges customers service charges. Will I need to change my current process?

WHMC Section 5.130.050 requires service charge proceeds to be equitably distributed amongst the employees generally contributing to the customers’ service (including back of house staff). Service charge proceeds cannot be distributed to employees whose primary roles are managerial or supervisory. All Service Charges must be disclosed to consumers with Clear and Conspicuous notice prior to the time that the customer makes a purchase or selection, in such a way that customers might easily and reasonably deduce what the Service Charge is for. If your current process does not comply with this rule, you will need to adjust your process. 

Can an Employer use a service charge as a credit towards its obligations to pay West Hollywood’s minimum wage rates?

No. An Employer may not take a credit towards its obligations to pay West Hollywood’s applicable minimum wage rate.

Can a supervisor or manager share in the service charge?

No. A supervisor or manager cannot share in the service charge. 

When does the paid sick leave, vacation, or personal necessity provision go into effect?

For hotel workers, the paid leave and uncompensated leave provisions went into effect on January 1, 2022.

For all other employees, the paid leave and uncompensated leave provisions went into effect on July 1, 2022.

Do Employers have to front load compensated and uncompensated hours or can they accrue it?

No. Employers have the flexibility to decide whether hours are front loaded or accrual-based. Accrual of hours should occur each pay period.

Do compensated and uncompensated hours carry over?

Yes. Unused accrued compensated time will carry over until a maximum of 192 hours is reached. Uncompensated time will carry over until a maximum of 80 hours is reached, unless the employer’s established policy is more generous.

How does the West Hollywood Ordinance relate to the state law requirements of leave provisions?

California adopted the Healthy Workplaces, Healthy Families Act, which provides for paid sick leave to workers through the state. The purpose and intent of the West Hollywood Ordinance is to provide leave benefits above and beyond the state requirements.

When are Employees entitled to the leave provisions in the ordinance?

Employees are entitled to begin using Compensated Leave designated as vacation or personal necessity leave and Uncompensated Leave no later than their 180th day (6th month) of employment or consistent with company policies, whichever allows Employees to use this leave sooner. However, accrued Compensated Leave designated as sick leave, shall be made available to Employees pursuant to State law.

Do Employers need to factor in tips when calculating the rate of tipped Employees using leave?

No. The compensated leave rate of pay is based only upon the base rate compensation to the Employee by the Employer.

Does California’s Paid Sick Leave law supersede West Hollywood’s compensated leave law?

West Hollywood Employers are subject to both State and West Hollywood’s leave provision laws. When California’s and West Hollywood’s paid sick leave laws contain conflicting requirements, the Employer must follow the stricter standard or the law that is the most beneficial to the Employee. The City of West Hollywood cannot advise Employers on how to comply with California state law, see http://www.dir.ca.gov/dlse.

As an employer, can I still have an employment policy governing vacation and sick leave and terms of employment.

An employer can still implement employment policies that spell out how these terms are handled in addition to all other terms of employment.  Those policies should be consistent with and not conflict with the terms of the ordinance. 

My business cannot sustain this change. What are my options?

The ordinance provides a one-year minimum wage rate waiver for businesses, with authorization from the City Manager (or their designee), if the business can demonstrate that the ordinance would force the business to file bankruptcy or close, reduce its workforce by 20%, or reduce its employees’ hours by more than 30%. 

I am part of a union. Does the new wage apply to me?

Yes, but through the collective bargaining process, benefits may vary. The City of West Hollywood’s Ordinance is a minimum labor standard and a law of general application that applies to all employees covered by the ordinance, whether represented by a union or not. However, per WHMC Section 5.130.090, the ordinance provisions may be superseded by a collective bargaining agreement. The supercession must be in a bona fide collective bargaining agreement, must be express, and must be in clear and unambiguous terms. The parties to a collective bargaining agreement are free to negotiate any terms they desire, and the City will not interfere with or participate in the negotiation of such terms.

Who is exempt from West Hollywood’s minimum wage?

The law does not apply to employees of government agencies, and certain employees who do not qualify for minimum wage payments under California law. The minimum wage law also does not apply to employees participating in a collective bargaining agreement that supersedes the minimum wage requirement. West Hollywood’s Ordinance contains limited exemptions for transitional employers.

Under what circumstances can Employers pay less than West Hollywood’s minimum wage?

Employees who are learners, as defined in California Labor Code Section 1192 and consistent with wage orders published by the California Industrial Welfare Commission, shall be paid not less than 85% of West Hollywood’s minimum wage rounded to the nearest nickel during their first 160 hours of employment, after which learners shall be paid the applicable minimum wage.

What can an Employee do if an Employer does not pay them at least West Hollywood’s minimum wage or does not provide leave as stated in the Ordinance?

Employees are first encouraged to contact their supervisor or Human Resources Department to try to resolve the problem directly with their Employer. If the Employee is not successful getting resolution from the employer, they can consult with an attorney to discuss their legal options. Employees may also submit a complaint via email at whwage@dcba.lacounty.gov.