§ 10.37.15 — Exemptions

Sec. 10.37.15. Exemptions.

Upon the request of an Employer, the DAA may exempt compliance with this article. An Employer seeking an exemption must submit the required documentation to the DAA for approval before the exemption takes effect. (a) A Public Lessee or Licensee, that employs no more than seven people total on and off City property shall be exempted. A lessee or licensee shall be deemed to employ no more than seven people if the company’s entire workforce worked an average of no more than 1,214 hours per month for at least three- fourths of the previous calendar year. If a Public Lease or License has a term of more than two years, the exemption granted pursuant to this section shall expire after two years, but shall be renewable in two- year increments. (b) Non-Profit Organizations. Corporations organized under Section 501(c)(3) of the United States Internal Revenue Code of 1954, 26 U.S.C. § 501(c)(3), whose chief executive officer earns a salary which, when calculated on an hourly basis, is less than eight times the lowest wage paid by the corporation, shall be exempted as to all Employees other than child care workers. (c) Students. High school and college students employed in a work study or employment program lasting less than three months shall be exempt. Other students participating in a work-study program shall be exempt if the Employer can verify to the DAA that: (1) The program involves work/training for class or college credit and student participation in the work-study program is for a limited duration, with definite start and end dates; or (2) The student mutually agrees with the Employer to accept a wage below this article’s requirements based on a training component desired by the student. (d) Nothing in this article shall limit the right of the Council to waive the provisions herein. (e) Nothing in this article shall limit the right of the DAA to waive the provisions herein with respect to and at the request of an individual Employee who is eligible for benefits under Medicare, a health plan through the U.S. Department of Veteran Affairs or a health plan in which the Employee’s spouse, domestic partner or parent is a participant or subscriber to another health plan. An Employee who receives this waiver shall only be entitled to the hourly wage pursuant to Section 10.37.2(a)(2)(i) and an additional wage rate of: (1) $100 per month for a full-time employee as defined by the Affordable Care Act (ACA) and who works at least 30 hours per week or 130 hours per month; or (2) $50 per month for a half-time employee as defined by the ACA and who works less than 30 hours per week or 130 hours per month. (f) Hardship Waiver for Airport Concessionaires with Less than 50 Employees. (1) Airport Concessionaires subject to a lease agreement at Los Angeles International Airport that is in effect at the time of the passage of the ordinance and who have less than 50 employees may apply for a one-year hardship waiver from the requirements of this article. (2) Hardship Waiver Application. The DAA shall grant a waiver from the requirements of this article to any Airport Concessionaire who demonstrates that compliance with this article would require the Airport Concessionaire, in order to avoid bankruptcy or a shutdown of the Airport Concessionaire’s enterprise, to reduce its workforce by more than 20 percent or curtail its employees’ total hours by more than 30 percent. The DAA shall grant such a hardship waiver only after reviewing the Airport Concessionaire’s financial condition at the Airport Concessionaire’s expense. A waiver granted under this section shall be valid for no more than one year. (3) Notice of Hardship Waiver Application. Prior to submitting a hardship waiver application pursuant to this section, an Airport Concessionaire shall provide written notice of the waiver application to all Employees employed by the Airport Concessionaire. Within three days of receiving a waiver determination from the DAA under this section, an Airport Concessionaire shall provide written notice of the determination to all Employees employed by the Airport Concessionaire. (4) An Airport Concessionaire that receives a hardship waiver under this Article shall be granted a 12-month delay in providing any new wage and health benefit increases that occur after the date the completed hardship waiver application is received by the DAA. An Airport Concessionaire that is granted a hardship waiver must continue to provide its Employees with the wage, health payment, and other benefits that were in effect on the date the DAA received the hardship waiver application. SECTION HISTORY Added by Ord. No. 184,318, Eff. 7-7-16. Amended by: In Entirety, Ord. No. 185,321, Eff. 1-20-18; Subsec. (e) amended and Subsec. (f) added, Ord. No. 188,610, Eff. 9-8-25.