Laws against wage theft would be strengthened under enforcement measures considered Tuesday by the Los Angeles City Council’s Economic Development Committee.
Committee members want to create a bureau to enforce the wage laws locally. They also want to explore penalizing employers who violate wage laws by revoking city permits or imposing fines. The panel instructed staffers to compile a report due in 30 days.
Typically, the state or federal government enforces wage laws. Earlier today, Chatsworth-based Eli Industries Inc. agreed to pay 30 current and former employees $93,400 in back wages and damages to settle allegations that overtime wages were withheld for nearly two years. Overtime is defined as 1 1/2 times the regular hourly rate.
Members of the Los Angeles Coalition Against Wage Theft said wage theft is rampant in Los Angeles, with an estimated $26.2 million stolen each week.
City officials told the panel that the state lacks the resources to enforce its own laws.
Deputy City Attorney Valerie Flores said the state had “good intentions” when enacting laws to protect workers, but state agencies are “simply overwhelmed” due to a lack of funding for enforcement.
If the city were to adopt its own minimum wage, enforcement of wage theft laws could become the city’s job, Flores said.
City officials are considering including wage theft enforcement measures along with a proposal for raising the minimum wage to $15 an hour — something being championed by Mayor Eric Garcetti and several council members.
The Economic Development Committee in October asked for a study on the effects of raising the minimum wage to $13.25 an hour by 2017 and to $15.25 an hour by 2019. The study should be completed by Feb. 1.
— City News Service