Chief Legislative Analyst report relative to requesting the City Attorney to draft amendments to the Office of Wage Standards Ordinance, Los Angeles Municipal Code (LAMC) Section 188.00 et seq. and changes to enforcement process utilized by the City in identifying, investigating, and penalizing wage theft and other related workplace violations; and related matters. (This item is referred to the Economic Development Committee and Jobs and Personnel and Hiring Committee.)

The Chief Legislative Analyst (CLA) has recommended amendments to the Office of Wage Standards (OWS) Ordinance (LAMC Section 188.00 et seq.) to enhance the City's ability to identify, investigate, and penalize wage theft and other workplace violations. Key proposed changes include:

• Expanding OWS Authority: Granting OWS the power to enforce and investigate violations related to Overtime, Meal Breaks, Rest Breaks, and Late Pay. Currently, OWS primarily enforces the Minimum Wage Ordinance.
• Prioritizing Low-Wage Workers: Revising the ordinance to prioritize claims from workers earning two-thirds or less of the median household income.
• New Complaint Triage System: Implementing a multi-tiered system to triage complaints based on severity (high, medium, low priority), considering factors like the number of workers impacted and the amount in dispute.
• Public Online Repository: Creating a public database of completed investigations and penalties, similar to Seattle's model, to increase transparency and act as a deterrent.
• Proactive Enforcement: Utilizing existing complaint data to proactively investigate industries with historically high rates of wage theft.
• Subpoena Power: Granting the Director of the Bureau of Contract Administration (BCA) the authority to issue administrative subpoenas to compel information during investigations, streamlining the process.
• Co-enforcement with Community Organizations: Strengthening information sharing and collaboration with community-based organizations to improve trust and reach for workers.
• Collaboration with Los Angeles County: Exploring enforcement collaboration with Los Angeles County to improve compliance.

The estimated cost for implementing these recommendations over a 9-month period is approximately $2.89 million, which includes hiring 13-16 new staff for OWS and the City Attorney's office. The business community, represented by various chambers of commerce, has expressed strong opposition, citing concerns about undermining employee privacy, eroding due process, and duplicating existing state enforcement efforts at a significant cost.