City Council will get an update at their meeting tonight on the rollout of the minimum wage increase they approved back in November. They will review the newly drafted Minimum Wage Administrative Regulations and provide direction on how the number of employees a business has should be calculated.
The agenda highlights the parts that concern WeHo’s business community, and how the city plans to address them.
Request to study Total Compensation for hospitality workers.
This allows the city to support the much higher wages many of our employees receive with tips and service charge wages. This provides more funds for entry level employees and allows retention of more jobs. The alternative is to lay off employees, cut meal periods, hours, and raise prices substantially. As the MWO is currently proposed—the highest paid employees at bars and restaurants receive large increases in annual wages, and the majority of kitchen staff receive little-to-no increase.
Consider a cap to the CPI increases to smooth out high vs low inflation years.
We are facing record increases in inflation, which will lead to a $20+ minimum wage in 2-3 years. Based on research and feedback from businesses, staff recommends implementing an annual minimum and maximum adjustment of 1% and 4%, respectively. A detailed approach regarding annual adjustments is outlined in the Administrative Regulations and further in this staff report.
City’s Response: The City Attorney has reviewed Total Compensation and provided an analysis in this staff report. Staff recommends the City Council provide direction based on the City Attorney’s analysis.
Calculate CPI with current, accurate data (6%+ as of today) vs showing a much lower wage forecast that was used at the last hearing.
City’s Response: The 6% referenced by the hospitality businesses refers to the point to point CPI increases at the time. Consumer Price Indexes have risen 6% to 8% national for the months of November, December, and January. Staff recommends using the annual CPI-W percent change to adjust the minimum wage annually, so that employers and employees are not severely impacted by point to point swings in the CPI. The annual CPI-W percentage change for calendar year 2020 was 4.3%.
Look at slowing down the speed with which the minimum wage increases. It’s too much too fast compared to our neighboring cities. Most city and state adjustments have been $1 or less per year (average of $2,000 increase per worker).
City Response: The Minimum Wage Ordinance allows employers to apply for a one-year waiver if the employer can demonstrate their business will be severely impacted by the citywide minimum wage. Staff has released the Waiver Application for employers who wish to defer the Minimum Wage increase for a period of one year.
Reconsider the Paid Time Off Rules and give more clarity on the issue
- 200% higher than Los Angeles, 240% higher than Santa Monica, 400% higher than Beverly Hills and the state
- “vacation” is a new MWO requirement for any city in California
- Clarify the process for approving vacation time.
- When can you deny a vacation?
- Can we demand a doctor’s note for someone to utilize or who utilizes more than two sick days in a row or is this up to each business to establish their own policy?
- Clarity on how time off accrues.
City’s response: Staff has released Administrative Regulations which outline how Compensated and Uncompensated Leave can be distributed, used, carried over and paid out upon separation, including examples of policies that may be used.
Is there going to be a department created within the city to facilitate grievances and or answer questions for businesses on implementing / understanding this ordinance?
Is there an Office of Wage Standards like Los Angeles to assist businesses and workers? (https://wagesla.lacity.org/)
Staff is working with the Los Angeles County Department of Consumer Affairs on an agreement to handle the minimum wage enforcement and investigations. In the interim, the Code Compliance Division will receive and respond to any complaints.
Using the number of employees from 2019 numbers is not reasonable given that we have had a pandemic, business models shifted, and 2022 will be vastly different than 3 years prior. For businesses trying to survive this MWO, many are or will cut hours and jobs and should not be penalized.
City Response: Staff recommends that all existing employers, including those that established West Hollywood business prior to 2020, use the average number of employees employed per quarter during the most recent calendar year to calculate number of employees. Most businesses will have been operating in the manner they plan to operate going forward for most of calendar year 2021. This change would require an amendment to the Minimum Wage Ordinance.
Consider that 50 / 51 small/large is not supporting numerous small businesses. Restaurants, bars and nightclubs that have 100 to 300 part-time employees to cover various shifts seven days a week and are not large by any means.
City Response: If the recommended calculation from above is used for all employers, the average number of employees employed per quarter during the most recent calendar year would account for recent staffing levels. Part-time employees would still be counted as one employee. However, the small and large business designations sunset on July 1, 2023. Employers experiencing severe impacts can apply for a one-year waiver of the citywide minimum wage.
I didn’t read all this but my first reaction to what I think is being said is to ask, “what place does any level of government have to impose any requirements on private business?”. An employer shouldn’t have to pay any wage that is more than the job is worth. If he wants to keep his employees the only factor he should have to consider is competition with other businesses. The market disciplines itself and all issues of fairness work themselves out on their own without government coming in and distorting that natural process. But politicians too often have some… Read more »
What? Why weren’t each of areas considered and provided rules and regulations prior to the council approving the minimum wage increase? The implementation plan as well as the regulations should have been completed and submitted to the council and public for review before any vote was scheduled let alone passage approved. His whole program needs to be put on hold and legislative audit started immediately.
These pathetic idiots on that city council think they’re Congress people rather than Hicks from nowhere. God, with these rubes in charge! I can’t imagine anyone wanting to come to the creative City. Unless they’re masochist tourists into being slugged, robbed, by a bunch of thugs. West Hollywood now is just a quick buck. Soon a quick buck with no cops to turn them away. Just amateurs like Mr Oliver and the safety patrol with John Erickson supervising! And Shyne dictating and Horvath doing her sleepwalking routine.