NEW LIVING WAGE DETERMINATION: APPLICABILITY TO ALL INDUSTRY-SPECIFIC SERVICES TO OR FOR LAWA

(Los Angeles, California – March 10, 2010) The Bureau of Contract Administration (BCA) has determined that there is a proprietary interest in applying LWO to all airport employees who provide industry-specific services to or for LAWA.  In effect, this determination broadens coverage to include airport employee classifications whose work occurs in non-public and/or secure areas since their work 1) impacts the public’s perceptions of services at LAWA or 2) maintains airport security.  The effective date to implement this coverage is May 1, 2010.

This determination ensures that there is a level playing field for businesses providing industry-specific services at LAWA either directly to the airport or as subcontractors to commercial airline and/or cargo tenants.  Further, it simplifies the complexity of payrolls and personnel issues and may forestall potential litigation in companies where employees of similar or the same classifications may currently earn at different rates based on where their service efforts occur at the airport.  
   
Under an amending ordinance implemented on January 17, 2010, City Council unanimously approved an increase to the hourly rate for health benefits of airport employees covered by LWO from $1.25 per hour to $4.50.  If health benefits are not provided by an airport employer, then $4.50 must be added to the base hourly wage rate. Thus, the new LWO hourly rate is $10.30 for employees with benefits and $14.80 for those without.  Further, if an airport employer provides benefits for less than $4.50 per hour, the difference must be added to the hourly wage rate.  The BCA determination on coverage requires that this rate structure will now apply to all airport employees who provide industry-specific services to or for LAWA

Given this significant change in coverage, business relations managers, contract administrators, and staff involved in operational standards and compliance should communicate directly with their clients about this determination and provide a copy of the correspondence.  Further, prime lessees and contractors are responsible for ensuring compliance by their sub-lessees and/or sub-contractors.

As indicated in the letter, please contact Mario Interiano at BCA, Office of Contract Compliance (213) 847-2631 or Mario.interiano@lacity.org for further information.