The previous minimum wage had been $15. The new rate marks about a 6% pay increase.
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The city's wage hike was announced in February by Mayor Eric Garcetti, while the county's increase was announced in March by the Department of Business and Consumer Affairs. Future hikes will be based on increases in the Bureau of Labor Statistics' Consumer Price Index.
Officials said the increase will help keep pace with inflation and support a stable workforce.
"We will ensure that workers in unincorporated L.A. County are protected and aware of the updated minimum wage, and we will work with our sister departments to support employers that may need assistance with information, compliance, and access to resources," county Department of Consumer and Business Affairs Director Rafael Carbajal said this week.
According to the county DCBA, the hike applies to employees who perform at least two hours of work in a week within unincorporated areas of L.A. County.
In addition, employers are required to post an updated bulletin of the new rate in a conspicuous place. The hike also protects workers regardless of their immigration or work status.
DCBA staff have been conducting on-site visits to businesses to clarify the new wage laws and encourage full compliance, according to the agency.
The city of L.A.'s bump is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers in the L.A. metropolitan area, according to the city.
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"We fought to raise the minimum wage because hard work should always be met with the dignity, respect and opportunity that fair pay brings," Garcetti said when he announced the increase.
"Our decision to end poverty wages in L.A. caused a ripple effect across the nation, and this additional increase is the latest reason to celebrate today -- and a reminder of how our fight for better wages is far from finished."
According to Garcetti's office, more than 600,000 Angelenos make minimum wage and will receive a pay increase Friday.
Still, some said even $16 an hour will be a struggle for people to survive in the city of L.A. amid inflation and steep gas prices.
City News Service contributed to this report.