LA Council Watch

← All files

Office of Wage Standards (OWS) / Claims Enforcement / Wage Theft / Violations / Overtime / Meal Break / Rest Break / Late Pay / Tips and Gratuities

Council File 23-0932

Approved — the City Council voted to strengthen wage enforcement powers against theft that costs low-wage workers an estimated $1.4 billion annually, and the City Attorney is now drafting the required ordinances to put the new rules in place.

Introduced
2023-09-01
Last changed
2026-06-26
Status
open
Expires
2028-06-24
Committee
Economic Development and Jobs Committee
Mover
TIM MCOSKER
Second
KATY YAROSLAVSKY
References
Chief Legislative Analyst Report: 23-10-0533; 26-04-0265City Administrative Officer Report: 0220-06380-0000

Brief

Councilmembers Tim McOsker and Hugo Soto-Martínez moved to strengthen Los Angeles wage enforcement by amending the LAMC to give the Office of Wage Standards broader authority to investigate and enforce violations including wage theft, overtime violations, meal and rest break violations, late pay, and mishandled tips. The motion directs the Bureau of Contract Administration to gain subpoena authority and prioritizes protections for lower-income workers. After committee review and amendment, Council adopted the measure 15-0 in October 2023 and reaffirmed it as amended on June 26, 2026.

Full summary

This motion, introduced by Councilmembers Tim McOsker and Hugo Soto-Martínez in September 2023, seeks to strengthen wage enforcement in Los Angeles by expanding the Office of Wage Standards' investigative and enforcement powers. The motion was prompted by findings that Los Angeles suffers an estimated $1.4 billion in annual wage theft — the highest rate in the country — with low-wage workers losing roughly 12.5% of their annual income, and immigrant workers experiencing theft at twice the rate of US-born workers. Studies cited in the motion found that 80% of workers are denied legally required overtime pay, 80% are forced to work through meal and rest breaks, and 30% are paid below the minimum wage. The core policy directives, refined through the Chief Legislative Analyst's review and committee deliberation, would amend the Los Angeles Municipal Code to formally prioritize enforcement for workers earning two-thirds or less of the city's median household income. They would also expand OWS authority to investigate and penalize overtime, meal break, rest break, and late pay violations — categories previously outside OWS's formal mandate — and grant the Bureau of Contract Administration director the power to issue administrative subpoenas. OWS would be required to build a public online database of completed investigations and resulting penalties, modeled on Seattle's Office of Labor Standards, and to develop a complaint triage system ranking cases as high, medium, or low priority based on factors including the number of workers affected, whether the employer is a repeat violator, and the total amount in dispute. The city would also pursue individual liability against business owners who attempt to evade enforcement and explore co-enforcement partnerships with Los Angeles County, including joint investigations and potential use of permit cancellations as a compliance tool. The estimated cost to implement these measures over nine months is approximately $2.89 million. State collaboration through the California Division of Labor Standards Enforcement was effectively ruled out after that agency cited budgetary constraints and expressed little interest in joint enforcement. The file passed through the Civil Rights, Equity, Immigration, Aging, and Disability Committee in September 2023 and was adopted unanimously by the full Council on October 3, 2023. The file remained active as implementation details were developed. The CLA submitted a detailed report in July 2025, which was referred to both the Economic Development and Jobs Committee and the Personnel and Hiring Committee. The Economic Development and Jobs Committee approved an amended version on December 2, 2025, and transmitted it to Personnel and Hiring, which continued the item in March 2026 pending additional analysis. Updated reports from the CAO and CLA were submitted in April and June 2026 respectively, the latter addressing the status of Senate Bill 261 (Wahab), a state measure that was ultimately chaptered in a narrowed form: rather than requiring public disclosure of employers with unpaid wage judgments, the enacted version allows civil penalties of up to three times an unpaid judgment against employers who leave judgments unsatisfied for more than 180 days. The CLA confirmed this state law does not preempt any of the city's proposed local enforcement measures and gives the City Attorney an additional enforcement tool. On June 26, 2026, the Personnel and Hiring Committee recommended approval of the package, and the full Council voted the same day to approve the item as amended, concurring with the December 2, 2025 Economic Development and Jobs Committee action with the exception of Recommendation No. 6. The file remains open pending the City Attorney drafting the required municipal code ordinances and OWS implementing the operational changes directed by Council.

Activity (24)

  • 2026-06-26 Approved as Amended; Concur with the 12/2 action of the Economic and Jobs Committee with the exception of Recommendation No. 6.
  • 2026-06-25 Chief Legislative Analyst document(s) referred to Economic Development and Jobs Committee; Personnel and Hiring Committee.
  • 2026-06-24 Document submitted by Chief Legislative Analyst, dated June 24, 2026.
  • 2026-06-22 Personnel and Hiring Committee scheduled item for committee meeting on June 26, 2026.
  • 2026-04-24 City Administrative Officer document(s) referred to Economic Development and Jobs Committee; Personnel and Hiring Committee.
  • 2026-04-22 Document submitted by City Administrative Officer, dated April 22, 2026.
  • 2026-03-06 Personnel and Hiring Committee continued item to to a date to be determined.
  • 2026-03-03 Personnel and Hiring Committee scheduled item for committee meeting on March 6, 2026.
  • 2025-12-02 Economic Development and Jobs Committee transmitted Council File to Personnel and Hiring Committee.
  • 2025-12-02 Economic Development and Jobs Committee approved as amended .
  • 2025-11-26 Economic Development and Jobs Committee scheduled item for committee meeting on December 2, 2025.
  • 2025-09-12 Personnel and Hiring Committee continued item to a date to be determined.
  • 2025-09-08 Personnel and Hiring Committee scheduled item for committee meeting on September 12, 2025.
  • 2025-08-29 Corrected Referral per Council President to include Personnel and Hiring Committee.
  • 2025-08-12 Corrected Referral per City Clerk to change referral to Economic Development and Jobs Committee.
  • 2025-07-25 Chief Legislative Analyst document(s) referred to Civil Rights, Equity, Immigration, Aging, and Disability Committee.
  • 2025-07-24 Document(s) submitted by Chief Legislative Analyst, as follows:Chief Legislative Analyst report, July 24, 2025, relative to amending the LAMC to prioritize lower-income workers, empower the Office of Wage Standards to enforce various wage violations, and grant the Bureau of Contract Administration subpoena authority.
  • 2023-10-12 Community Impact Statement submitted by Pico Union Neighborhood Council.
  • 2023-10-04 Council action final.
  • 2023-10-03 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2023-09-29 City Clerk scheduled item for Council on October 3, 2023.
  • 2023-09-15 Civil Rights, Equity, Immigration, Aging, and Disability Committee approved item(s) .
  • 2023-09-08 Civil Rights, Equity, Immigration, Aging, and Disability Committee scheduled item for committee meeting on September 15, 2023.
  • 2023-09-01 Motion referred to Civil Rights, Equity, Immigration, Aging, and Disability Committee.

Documents (24)

Council votes (1)

  • 2023-10-03 Adopted — 15-0-0 · Regular

View on CFMS →