A minimum wage increase went into effect on Friday for Los Angeles businesses with 26 or more employees.
The increase to $10.50 an hour from $10 is the first of several increases that will eventually raise the minimum wage up to $15 an hour in 2020.
The wage increase was signed into law by Mayor Eric Garcetti last year despite opposition from area business groups, including Valley Industry & Commerce Association, in Sherman Oaks.
The increase affects businesses with 26 or more employees. Businesses with 25 employees or less will need to be in compliance with the increase next year, with the rate for them being $15 in 2021.
Garcetti said that raising the minimum wage matters because it helps build a strong middle class which is good for the local economy
“We’re celebrating today, but we’ll keep fighting for good jobs with good wages, greater access to health care, and a secure retirement for everyone,” Garcetti said in a prepared statement. “Because all Angelenos — from the boardroom to the factory floor — deserve a chance to share in this city’s prosperity.”
Also going into effect Friday is a provision of the minimum wage ordinance requiring employers with more than 26 workers to provide up to six days of sick leave a year from the previously mandated three days. Businesses with 25 or less employees will start compliance next year.