As we reported, the Los Angeles City Council authorised a brand new healthcare worker minimum wage ordinance, growing the minimal wage for healthcare staff at personal healthcare services in Los Angeles to $25.00 per hour. Equally, the Downey Metropolis Council authorised its personal citywide healthcare worker minimum wage ordinance. For the second, nonetheless, each ordinances are on pause. The Los Angeles ordinance would have gone into impact on August 13, 2022, and the Downey ordinance would have develop into efficient on August 11, 2022.
On August 10, 2022, two separate referendum petitions have been filed with the City of Los Angeles and the City of Downey, respectively. Supported by the “No on the Unequal Pay Measures” group, the petitions search to remain the ordinances and have the difficulty determined by voters of their respective cities. The proponents of the petitions said that they gathered twice as many signatures required to droop the minimal wage ordinances to carry a public vote on the brand new minimal wage hikes.
Accordingly, the minimal wage will increase are frozen whereas the respective metropolis clerk places of work confirm that the petitions comprise the required variety of legitimate signatures, which is 40,717 in Los Angeles. Assuming the requisite variety of signatures are verified, the difficulty can be put to a public vote. In Los Angeles, nonetheless, whether it is decided that there aren’t sufficient signatures as required, the ordinance will go into impact upon town clerk issuing a certificates of insufficiency. In Downey, the ordinance has been routinely stayed pending assessment of the petition, and the Downey Metropolis Council will situation a choice as soon as this course of is finished.
Ought to an election be approved, it might most likely not happen till 2024. Whereas it’s too late to incorporate the referendums on this 12 months’s fall elections, the “No on the Unequal Pay Measures” marketing campaign said that pushing for a particular election in 2023 can be too pricey.
Presently, private-sector healthcare employers (as outlined within the ordinances) in Los Angeles and Downey will seemingly not must implement the minimal wage will increase for his or her workers, pending assessment and certification. This could hopefully give healthcare employers considerably extra time to plan and, if desired, aggressively marketing campaign towards the ordinances.
Nevertheless, two different California cities, Monterey Park and Lengthy Seashore, authorised a $25.00 per hour minimal wage for private-sector healthcare staff in early August. In Monterey Park, the ordinance will develop into efficient 30 days after town lawyer processes the ordinance. In Lengthy Seashore, the Lengthy Seashore Metropolis Council voted unanimously in favor of an ordinance growing the minimal wage for healthcare staff on August 2, 2022. The primary studying of the ordinance by the Metropolis Council was on August 9, 2022, and the second studying befell on August 16, 2022. The Lengthy Seashore Metropolis Council approved the ordinance on August 16, 2022, and, absent an analogous citizen referendum petition being filed, the ordinance will develop into efficient on September 16, 2022.
These ordinances are a part of a concerted effort of the Service Workers Worldwide Union (SEIU). SEIU is at present pushing to go or put comparable ordinances on the poll all through California, together with in Anaheim, Baldwin Park, Culver Metropolis, Duarte, Inglewood, and Lynwood.
What Employers Ought to Do Now
The impression of such a dramatic change in minimal wages would clearly not solely impression employers’ funds and monetary viability but additionally wage compression points (as lower-paid classifications encroach on the wages of higher-skilled or more-tenured workers). Accordingly, trying forward, private-sector healthcare employers ought to think about proactively taking the next actions to mitigate the impression of those ordinances:
- Put hiring freezes on vacancies as they happen in any lower-paid positions that earn lower than $25.00 per hour.
- Overview and (re)map job classifications to incorporate lower-wage duties in higher-paying job classifications.
- Relocate and/or develop sooner or later to different native jurisdictions the place the native elected officers haven’t proven a propensity to go such focused laws.
- Focus on and implement automation methods for sure operations (e.g., including merchandising machines).
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