United States: Hotel California: Annual Minimum Wage Increases Take Place On July 1

The California cities of Santa Monica, Long Beach, and Los Angeles each mandate a separate minimum wage payable to hotel workers.1 The rates adjust annually on July 1. Below is a summary of the new rates, effective July 1, 2018.

In addition to mandating a separate minimum wage, each of these ordinances requires employers to provide compensated time off for covered employees. They also impose certain conditions relative to the collection and distribution of service charges and prohibit retaliation.2 Finally, tips and service charges earned by employees may not be used to offset the minimum wages. This article briefly highlights some of these requirements as well.

Los Angeles

Effective July 1, 2015, Los Angeles enacted its Citywide Hotel Worker Minimum Wage Ordinance, applicable to hotels with 150 or more guest rooms, which requires hotel employers3 to pay their employees a set minimum wage and provide 96 compensated hours of time off along with at least 80 additional hours of uncompensated time off per year.4

The threshold number of rooms is calculated based on the number of rooms upon hotel opening or on December 31, 2012, whichever is greater. The calculation includes any contracted, leased or sublet premises connected to or operated in conjunction with the hotel's purpose or providing services at the hotel. "Hotel worker" is defined broadly in the ordinance to include any employees employed at a hotel, other than managerial, supervisory and confidential employees.

In Los Angeles, service charges cannot be retained by the employer or by any supervisory employee and must be paid, by the next payroll following collection of the amount, to the workers performing the services. "Service charge" is defined to include any separately designated charge that a guest might reasonably believe is for service, including delivery charges or porterage charges.

Long Beach

Long Beach enacted Measure N on November 6, 2012, requiring minimum compensation and at least five compensated sick days for hotel workers.5 This provision applies to employers operating hotels of 100 or more guest rooms. As in Los Angeles' provision, "Hotel" is broadly defined and includes premises connected to or operated in conjunction with or providing services at the hotel.

In addition to the annual minimum wage increase, employers should be aware that written notice of that rate adjustment must be provided to covered Long Beach employees by July 1, 2018.

Long Beach's municipal code prohibits retention of any portion of a service charge. Moreover, the ordinance requires that such charges be paid to the hotel workers performing services for the customers from whom the charges are collected, equitably, according to the services described to the customers, and by the next payroll cycle.

Santa Monica

Santa Monica's ordinance applies to all hotels regardless of size, except youth hostels.6 "Hotel" is defined to include businesses that contract, lease, or sublet on hotel property or provide services on hotel property. The ordinance prohibits a hotel employer from funding the wages and benefits required by reducing the pension, vacation, or other non-wage benefits of any hotel worker, or by increasing charges to hotel workers for parking, uniforms, meals, or other work-related materials or equipment.

Santa Monica hotel employers must comply with the city's separate ordinance7 mandating that service charges must be paid to employees performing the services. This additional provision allows such charges to be shared between front and back of house employees—except that porterage charges, room service charges and banquet charges must be paid to the specific employees who actually perform those tasks. Santa Monica's service charge ordinance requires that employers maintain certain records, provide written disclosure of the method of distribution of charge proceeds, and report the amounts collected and distributed to employees at each payroll period.

City

Hotel Size

Minimum Wage (Current)

Minimum Wage
(July 1)

Compensated Time Off

Notice Requirement for Minimum Wage Rate Changes?

Los Angeles

150 or more rooms as of hotel opening or December 31, 2012, whichever is greater.

$15.66

$16.10

Hotel workers must be provided 96 hours compensated time off per year, which accrues at rate of 96/52 per week of full-time employment up to cap of 192 hours. Part-time workers (less than 40 hours per week) accrue time off in proportional increments. Employees must be allowed to use the time after first six months of employment unless existing policies allow for use at an earlier time.

Hotel employers must also provide an additional 80 hours of uncompensated time off to full-time employees to be used for illness of the worker or a member of the worker's immediate family where compensated time off has been exhausted for the year. Part time workers accrue such time proportionally.

No specific provision.8

Santa Monica

No minimum size threshold.

$15.66

$16.10

Through a statute applicable to all workers, Hotel employees accrue 1 hour paid time off per 30 hours worked. The time off accrues up to a cap of 40 hours for small businesses (25 or fewer employees) and 72 hours for larger businesses (26 or more). The time may be provided at the beginning of the year as a whole if consistent with accrual amounts; can be carried over annually (calendar, fiscal or hire date) up to cap. Use of sick leave follows California's statewide paid sick leave law.9

By July 1 in English, Spanish and any other language spoken by 5% or more of workforce

Long Beach

100 or more guest rooms.

$14.35

$14.64

Hotel employees are entitled to 5 days per calendar year upon request without certification of illness. The time accrues 5/12 of a day for each month and may use as soon as accrued. Unused accrued time is to be paid to employees at end of calendar year.

By July 1.

Footnotes

1 "'Hotel worker' means any individual whose primary place of employment is at one or more [h]otels and who is employed directly by the [h]otel [e]mployer, or by a [p]erson who has contracted with the [h]otel [e]mployer to provide services at the hotel." L.A., Cal., Mun. Code § 186.01. The Santa Monica and Los Angeles municipal codes further provide that the definition of "hotel worker" does not include a managerial, supervisory or confidential employee.

2 All three ordinances also provide that the provisions may be waived pursuant to a collective bargaining agreement if certain conditions are met.

3 "Hotel employer" refers to a person (or entity) "who owns, controls, and/or operates a [h]otel in the [C]ity, or a [p]erson who owns, controls, and/or operates any contracted, leased or sublet premises connected to or operated in conjunction with the [h]otel's purpose, or a [p]erson who provides services at the [h]otel." L.A., Cal., Mun. Code § 186.01.

4 L.A., Cal., Mun. Code §§ 186.02, 186.04.

5 Long Beach, Cal., Mun. Code § 5.48.020.

6 Santa Monica, Cal., Mun. Code § 4.63.010.

7 Id. § 4.62.040.

8 Los Angeles' ordinance does not reference a specific requirement to provide written notice to Hotel Employees of rate changes; however Hotel Employers must notify hotel workers of their possible right to earned income credit under 26 U.S.C. § 32. While there is no specific notice required of minimum wage rate changes, every employer must post notice of minimum wages. See L.A., Cal., Mun. Code § 188.03.

9 Cal. Lab. Code § 245 et seq.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions