For nearly 40 years, the Los Angeles County Department of Consumer Affairs has been the local consumer protection agency. As director of the department since 2012, it’s my job to make sure consumers are protected from fraudulent or unscrupulous businesses operating in the county.
However, the county is only at its strongest when both consumers and businesses thrive. The Board of Supervisors has made an important change to both the focus and name of my department. Today, the Department of Consumer and Business Affairs empowers both consumers and businesses in the county.
The county’s minimum wage increased on July 1. Now, businesses in the unincorporated areas of the county with more than 25 employees must pay their employees a minimum wage of $10.50 an hour. Businesses with 25 or fewer employees will follow a delayed schedule, paying $10.50 an hour beginning July 1, 2017. The minimum wage will increase every year until 2021, eventually reaching $15 an hour.
The county believes honest work deserves fair pay and this new ordinance will certainly boost workers, many of whom struggle to make ends meet.
The board tasked my department with enforcing the minimum wage through our Wage Enforcement Program; it’s a responsibility we take seriously. Our enforcement philosophy is based on a balance of education and enforcement. We educate workers and employers on their rights and responsibilities under the law, conducting several roundtables and going door to door to more than 200 businesses.
We sent letters to more than 7,000 businesses, informing them of new posting requirements and sent a link of our minimum-wage poster to the 50,000 businesses who sell goods and services to the county. If workers believe they are not being paid the correct minimum wage, they can file a claim on our website, call, or come into one of our branch offices.
Our investigators will conduct interviews, review payroll records, and take appropriate action to ensure businesses are in compliance. If we determine a claim is not a violation of the county’s minimum-wage ordinance, we’ll offer mediation as a remedy.
If claims are substantiated after an investigation has been completed, we have several enforcement tools depending on the severity of the violations. For example, we could issue corrective action notices, administrative citations with monetary fines, or refer violators to state and federal agencies.
Employee, business protection
The county’s minimum-wage law includes an anti-retaliatory measure that prohibits employers from retaliating against workers who file a wage claim or assist in an investigation.
Protections are in place for employers as well. If a claim is filed against them, they will have the opportunity to prove that they have been in compliance or will have the chance to correct a violation. Our investigations are impartial and our findings are based on the facts.
We know some business owners are concerned about what this change means for their bottom line. However, just as our department name suggests, we are working hard to support county businesses.
Our Small Business Initiative involves several county departments joining forces to provide business owners with tools to help them transition during the minimum-wage increases. The initiative includes low-interest loans and community revitalization grants, workplace development programs that can assist owners if they need to restructure or find qualified employees, and faster plan checks for restaurants, among many other benefits.
Another way for businesses to offset the costs of the minimum-wage increase is to apply for county contracts. The county offers billions of dollars in procurement opportunities, from office products to consulting services and more. The Small Business Utilization motion, authored by Supervisors Hilda Solis and Mark Ridley-Thomas, is a bold, exciting program that will make it easier for local small businesses to compete for county contracts. We’ve set a goal to increase the number of county contracts that go to small businesses to 25 percent, and 3 percent for disabled veteran businesses owners by 2020.
So when we say “Honest Work, Fair Pay” that could mean your business getting paid, too.
Consumers and businesses thriving. It’s the L.A. County way.
Brian J. Stiger is director of the Los Angeles County Department of Consumer and Business Affairs.
