West Hollywood’s minimum wage ordinance, adopted on November 15, 2021, applied the minimum wage that was adopted for hotel workers to all employees within the City of West Hollywood. However, it has led to many business closures, including one outspoken business owner of the Chop Stop ETVUD.
When the ordinance became effective on January 1st, 2022, the base rate was $17.54 per hour. On July 1st, 2022, the rate adjusted to $18.35. Effective July 1st, 2023, the minimum wage will increase further to $19.08, making it the highest rate in the state and even in the nation.
The passed resolution has resulted in price increases at all local businesses and mandates a minimum 1% raise each year. It can go up to 4% each year as established by the consumer price index.
Last year, businesses that were able to show hardship were allowed to apply for a one-year waiver. However, beginning in July 2023, all waivers will expire, and the full implementation of the ordinance will be in effect.
In addition, all employees would receive up to a maximum of 80 hours of vacation pay for workers who work 40 hours per week, and up to 96 hours of sick leave for full-time workers. The base pay does not include tips or other forms of compensation.
The federal minimum wage is $7.25 per hour. As of January 2023, the State of California minimum wage is $15.50 per hour, making it the highest in the nation. Beverly Hills follows state law and does not create a separate minimum wage for businesses operating within its borders; their minimum wage is $15.50. New York City’s minimum wage is currently $15.00 but is set to increase to $15.50 per hour.
State law requires salaried workers to make twice the hourly worker rate. Under the new minimum wage implementation, the new base salary for any worker in the City of West Hollywood could go as high as $75,000. The current base rate for a salaried employee in West Hollywood is $65,400 per worker.
There are no exemptions for small businesses or at-home employees. If you employ a housekeeper or caretaker, you are required to pay a minimum hourly wage of $19.08 per hour and provide provisions for both vacation and sick pay.
There are no exemptions for non-profits, which was noted when the Saban Free Clinic decided not to request funds from the City of West Hollywood. They cited the high cost of doing business in West Hollywood as the reason.
Many local bars and restaurants have passed the increased costs directly to the local consumers by adding a surcharge to receipts.
The cost to the employer for each dollar paid to an employee is much greater than the minimum wage. Employers must match FICA withholding of 6.2%. In addition, Unemployment Insurance can range from 3.4% for new businesses to 6.0% of the wage. Medicare and SSI contributions are 1.5%. This equals $19.08 plus $1.19 (FICA) plus $1.15 (UI) plus $0.28, totaling $21.70.
Adding the cost to the employer for vacation and sick pay is approximately 1 hour for each 20 hours worked or an additional 5% of the wage which brings the cost per hour to employer to $22.78.
Employers must provide workers’ compensation insurance for all employees as mandated by the state. California has the 4th highest workers’ compensation rates in the nation. Using a 2.2% rate to the $22.78, the total cost to the employer per hour, excluding health benefits, for any entry worker in West Hollywood is roughly $23.30.
Genevieve Morrill, President and CEO of the West Hollywood Chamber of Commerce, has discussed the ramifications of these policies on local businesses. Currently, there are approximately 400 business licenses issued by the City of West Hollywood. In 2018, there were over 750 business licenses issued to businesses operating within West Hollywood.
Here is a list of some of the shuttered businesses: Chop Stop, Cousin’s Maine Lobster, Coffee Bean Hancock, Coffee Bean Beverly, Hedley’s, Subway Fairfax, Subway Santa Monica Blvd, Sprouts, Starbucks Fairfax, Starbucks Westbourne, Taste, Tortilla Republic, Lucques, Ago, Gelatofest, Pacifique, Conservatory, NoStat, The French Apartment Gallery, Marinate, OWN-Oprah Winfrey Network, Il Piccolina, Tabarka Studio, By the Way Burger, The Chad Allen, Five Guys, Flower Burger, On this day by John Varvatos, Warrior Restaurant, Cabo Cantina, Beauty Collection, Halal Guys, H&M, Optometrix, Poke, Flaming Saddles, Rage, Gold Coast, Unity, Hamburger Haven, The Wing, 24 Hour Fitness, Cockdog, Leo’s Flowers, Raffi Jewelers, Bank of America at Crescent, Standard Hotel, Terners Liquor, Birdies Bakery, Rock and Rover, US Bank, Union Bank.
West Hollywood was founded on the principles of affordable housing, rent control, freedom of expression, and equality for all. Today, there is an unequal cost to doing business in West Hollywood, and it is the residents who are paying the price.
WEHOville highlighted the many shuttered business corners in West Hollywood in this article.
About to be a lot fewer open businesses here.
Chalk up another victory for “how the Far Left can KILL A CITY”
I am so excited, how WH is becoming another SF, a failed city with psychotic leadership that has people shi**ing in the street, murder, illegal alien drug cartels, tent towns, crime, and always the highest taxes in the land. GO WH!
In all candor, many small businesses will probably go under, because they will have to limit staff or close down. MORE vacant businesses? IS this a wise financial decision? We will see if it tanks the WeHo financial economy.
Yeah, Something About Her has yet to open up and now they won’t be able to turn a profit without charging $50 for a sandwich.
This is ludicrous. 12 days/96 hours of paid sick time? Most corporations provide 5 days for the executives + 2 personal days. 80 hours of paid vacation? Most companies provide 5 days the first year and two weeks the second year. This is highway robbery on our corporations and the local economy. How did this pass into law without a ballot measure? Hindsight at least lets us accurately see how this irresponsible increase has negatively effected our city on every level.
West Hollywood’s problems begin and end with Unite Here. They vomited Erickson/Shyne/Byers into our faces and no hotel maid is worth $19.00 per hour.
AGREED, I think $19. is ludicrous! All this will do is put more people out of work and onto the streets, homeless, and overburden the social services organizations even more. NOT a great business move!
The City has it all covered 100%, on
How to destroy a big gay community in California in 3 years.
Just ask the dump San Francisco has become.
Businesses in West Hollywood are being strangled by the rules and demands aforesaid. They will continue to shutdown and/or move beyond the borders of West Hollywood to create their dreams. An unrealistic, naive, uninformed City Council is killing the dream.
West Hollywood has become an expensive, unsophisticated junk city. With no foundation of lasting value they have become a pastiche of “we are the first city to do…….” without obtaining any recognition of value.
Yep. Just look at the condition of the sidewalks, the run-down blue street lights, the utility boxes, the grafitti on everything. Junkcity.com….
On the CC Consent Calendar Monday evening are several interesting items:
2-S West Coast Arborists 2.5 Million Increase for Trimming Trees
2-M $350,000 for Mid City Decorative Street Lanterns
2-P $400,000 for Fabric Shade Structures for WeHo Park
Over trimming trees leading to their exponential growth and eventual weakness, fabric structures aka tents instead of park trees, decorative lanterns rather than clean streets & sidewalks.
There are no tents in West Hollywood. The sidewalks in this city are some of the best in LA County. There is also close to zero graffiti in Weho. You both may want to look at the Weho City/LA City borders again and to see the difference.
Manny, you may be interested in Item 2-P. If you never leave your pod in WHW you won’t be able to see the condition of the sidewalks and prevalent grafitti although it was not mentioned.
LOL pod. He’s gonna eat the bugs and plug into neuralink and wear his Apple VR goggles.
Right, no tents. They just post up in alcoves and abandoned buildings and throw drug-induced psychotic rage fits because people have the chutzpah to get their cars washed. They live on office chairs, and yes, also tents. I seen it! Or else you’re calling me a liar.
What hotel have closed down recently? Boys Town is just as vibrant as ever. Restaurants seem to be thriving. Retail has changed and business models need to be more equitable; eventually West Hollywood will find its equilibrium. The sky has not fallen.
A minimum wage should be no more than what the job is worth to the employer. Low wage jobs should be transitional jobs; something for students mostly, or as a second part-time job. Low-skilled jobs are not intended to pay enough to live alone, or certainly not enough to raise a family. As it is now with these high wages there is no incentive for low-skilled employees to extend themselves and do more because they’re perfectly comfortable right where they are. There are trade schools and tech training centers all over LA county that are very affordable, and sometimes free, for anyone… Read more »
No one is “comfortable” at $19/hr in Los Angeles.
I find it condescending to not increase minimum wage when ALL other costs have gone up: groceries, RENT, gas, childcare, clothes etc.
you seem to conflate non-skilled or part time workers with full time workers. you also conflate the living wage with somebody who just wants a part time job. you ignore the pass through costs to residents and higher cost of living in West hollywood, and the highest cost to do anything including build housing or parks..requiring all who do business with the city..so millions of park cost overruns, or even aids memorial postponed. yet you prefer cost controls or rent control to allow stability in housing and you advocate for affordable housing, but not for affordable workers. You like subsidized… Read more »
I’m sure Elton John would pay for the completion of the AIDS Memorial if asked.
that’s because you aren’t responsible for a payroll.
and you are, Mick?
You and I probably require a higher standard of living than most low skilled workers who may be quite content on a “living wage” and will do nothing to take advantage of the opportunities available to them to develop skills to become more marketable. Your and my definition of “comfortable” is likely very different than that of people who stay in low-skilled jobs very long. It seems you may be saying to these workers that they are too stupid to do better, so you will, from your higher perch, reach down and keep them alive as long as they want… Read more »
A minimum wage should be no more than what the job is worth to the employer. Low wage jobs should be transitional jobs; something for students mostly, or as a second part-time job. Low-skilled jobs are not intended to pay enough to live alone, or certainly not enough to raise a family. As it is now with these high wages there is no incentive for low-skilled employees to extend themselves and do more because they’re perfectly comfortable right where they are. There are trade schools and tech training centers all over LA county that are very affordable, and sometimes free,… Read more »
The people who object to paying workers a living wage do not see that more money in the pockets of people who spend it, rather than hoard or move it around, is good for the economy.
It’s great that you can afford to pay your maid or caretaker or receptionist 65,000 plus per year and a month of vacation and sick pay. Are you paying market rate for your housing or need rent control to stay in weho?
I am tired of being bullied by crazy people. I believe in paying a fair wage. But paying 65k for a nanny plus a week of vacation when I earn a similar wage outside City boundaries, then… we got a dilemma. The progressive left lost their marbles, and bully rational people from speaking out.
So gross.
My housekeeper does not earn $65,000 with me.
I live under rent control, so I get the benefit.
There was a waiver but I read responses here that claimed the process was too difficult. Imagine being means tested for public aid and being unable to fill out a form.
The sky isn’t falling, as much as all you opponents like to claim that it is or will.
Your housekeeper needs to be paid a minimum 19.08 per hour plus up to 80 hours vacation and 96 hours sick pay or you can be fined for non-compliance and they can take you to court, under the new West Hollywood law and she will get a judgement against your assets. Or you can break the law and hope she does not know the rules. You also have a legal obligation to disclose it and post a notice – and if you have a problem with that you should write the counsel and ask for exemptions, but this is the… Read more »
I never said that I don’t pay her what she must be paid.
I simply don’t employ her $65,000 worth a year.
Not a 40-hour work week.
Full time is 30 hours or more. Your maid is covered under this ordinance- and needs to be paid the vacation and sick time. If she is a corporation you can pay the corporation directly. If your writing the check to her and it is 30 hours or more you are required to classify her as a salaried worker and pay accordingly or convert her to hourly and follow those sick pay 96 hours and vacation 80 hours or for part time 1 hour for each 20 worked split approx 1/2 1/2 vacation and sick. That’s the new rules so… Read more »
You will never squeeze thirty hours out of a full day, which nobody I know works, regardless of desire or need.
Out of touch a little bit??
Thirty hours a week is considered full time. But vacation and sick pay are due to all workers full or part time. Your comment has a little bit of dementia going on, hope your ok.
It’s just funny how you want to cheat your housekeeper and then say the sky is not falling – I think you need to realize that your not an exception to the law and your cheating your worker and not living under the same rules as everybody else. You need to covert her to hourly and pay her the wage that is required.
Do you realize how much more expensive everything is here vs. just over the hill? Our grocery store is by far the most expensive around. We go out less (dining, bars, we stopped taking ubers) because we have less to spend. Not good for the economy. Nor does it motivate people to seek higher education to obtain the skills to get a better paying job. It keeps them in the same lower paying jobs with no skills to offer when those jobs get phased out by technology. (when was the last time you saw a parking attendant? The kiosk has… Read more »
Key statement. Lost motivation to be a better person equipped to navigate a lifetime of occurrences. Literally a sponge that is paid $65,000. and unable to speak respectable English.
Wow, it’s really telling how many people despise minimum wage workers. A sponge? Seriously?
There is no evidence of “lost motivation” when minimum wage is increased.
Despise would not be the term I would use. People of good character are fairly easy to see regardless of their job, compensation or whatever. Look around and please point out the motivated people of that description if you can find any of them. There are very few examples of people with good character in our current society that are not compromised by there own self serving agendas.
One could say making people into a form of “slave”.
That’s an interesting observation.
The mental gymnastics it took for you to imply that people wanting to pay people more money is making them a “slave”…
So absurd.
“Nor does it motivate people to seek higher education to obtain the skills to get a better paying job. It keeps them in the same lower paying jobs with no skills to offer”
I’m sorry, but there is no evidence of this at all. McDonald’s is not just implementing touch screens in areas with minimum wage-it’s everywhere. Even where min wage is below $8/hr.
Listen to yourself. It is expensive for everybody or cheap for everybody.
Good luck with that.
CUE more business closures in 3, 2, 1. Wouldnt be surprised if K24 closes soon. Lately every time I go by its always fairly empty to matter day of week nor time.