§ 16.60.040. Payment of minimum compensation.

A.

Each Concessionaire subject to this Chapter pursuant to Section 16.60.030 shall pay Concession Workers a wage of not less than the hourly rates set forth in this Section. The rate upon enactment shall be thirteen dollars and twenty-six cents ($13.26) per hour worked. This rate shall be adjusted by the amount of increases in the federal minimum wage over the amount in effect on December 31, 2013, or, if greater, by the cumulative increase in the cost of living. The cost of living increase shall be measured by the percentage increase as of December 31 in any year over the level as of December 31, 2013 of the Consumer Price Index (All Urban Consumers, Los Angeles-Riverside-Orange County) as published by the Bureau of Labor Statistics, U.S. Department of Labor or the successor index or federal agency. If in any calendar year there is no increase in the federal minimum wage and the increase in the Consumer Price Index is less than two percent (2%), then the rate shall be adjusted by an increase of two percent (2%). The Mayor or the City agency designated by the Mayor shall publish a bulletin by April 1 of each year announcing the adjusted rates, which shall take effect the following July 1. Such bulletin will be made available to all Concessionaires and to any other person who has filed with the Mayor or the designated agency a request to receive such notice but lack of notice shall not excuse noncompliance with this Section. A Concessionaire shall provide written notification of the rate adjustments to each of its Concession Workers and make the necessary payroll adjustments by July 1 following the publication of the bulletin. Tips or gratuities received by Concession Workers and service charges or commissions shall not be credited as being any part of or offset against the wage rates required by this Section.

B.

Service charges shall not be retained by a Concessionaire but shall be paid in the entirety by the Concessionaire to the Concession Worker(s) performing services for the customers from whom the service charges are collected. No part of these amounts may be paid to supervisory or managerial employees. The amounts shall be paid to the Concession Worker(s) equitably and according to the services that are or appear to be related to the description of the amounts given by the Concessionaire to the customers. The amounts shall be paid to the Concession Worker(s) in the next payroll following collection of an amount from the customer. The foregoing provisions do not apply to any tip, gratuity, money, or part of any tip, gratuity, or money that has been paid or given to or left for a Concession Worker by customers over and above the actual amount due for services rendered or for food or beverage sold or served to the customer.

( ORD-14-0002 , § 1, 2014)