Minimum wage increase laws are being passed in cities and states throughout the country. The federal minimum wage went up to $9 at the beginning of the year, and big cities with high costs of living – like San Francisco and New York – are increasing theirs even more.
In July, The Los Angeles Times published a Q&A with a concerned HOA company asking whether they have to comply with the wage increase in the City of Los Angeles if their employees weren’t requesting a higher wage.
The answer is yes because paying the minimum wage is a labor law and not dependent on whether a worker is currently satisfied with his or her pay.
Like any business, to pay higher wages, HOAs will either need to generate more revenue by raising fees, cut costs, or decrease staff. While keeping monthly dues low is ideal, there are a few ways HOA boards can increase assessments without a vote of the owners.
Though this piece only covers Los Angeles laws, check out the article for more information about how an HOA and homeowners can work with new minimum wage laws.