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Report regarding a study session exploring the potential adoption of an ordinance increasing the minimum wage citywide to $15 per hour. (Christina Fernandez, Assistant to the City Manager)
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RECOMMENDATION
Recommendation
It is recommended that the Council provide direction and guidance in order to adopt an ordinance relating to a citywide minimum wage ordinance.
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BACKGROUND/DISCUSSION
Currently the State's minimum wage is $12.00 per hour. At a Special City Council meeting on April 9, 2019, City Council directed staff to increase the minimum wage to $15 per hour for all city employees effective July 1, 2019. This was accomplished through the FY 2019-2020 City Budget, passed by City Council on June 26, 2019. In addition, council directed staff to explore the increase of the minimum wage to $15 per hour for all businesses citywide with a targeted effective date of January 1, 2020.
State Law
In April 2016, then Governor Jerry Brown signed into law Senate Bill 3 which increased the state's minimum wage to $15 per hour for all employers with greater than 26 employees by January 1, 2022 (January 1, 2023 for employers with 25 or fewer employees). Thereafter, the minimum wage will be adjusted annually based on the National Consumer Price Index (CPI-W). The minimum wage schedule for the State of California is attached (Attachment 1).
In addition to California state law, several California cities have passed minimum wage ordinances that have moved ahead of the state's timeframe of 2023.
Minimum Wage Policies in Other Jurisdictions
In San Mateo County, the cities of San Mateo, Belmont, and Redwood City have adopted Minimum Wage Ordinances. Outside of San Mateo County, San Francisco and several Santa Clara County cities have adopted higher minimum wage standards.
On August 16, 2016, the City of San Mateo became the first city in San Mateo County to adopt a Minimum Wage Ordinance requiring annual increases in the Minimum Wage to be paid with...
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