Title
Recommendation to Review Staff's Analysis and Provide Direction on Possible Next Steps, including Community Outreach, Determining Potential Fiscal Impacts, and Returning with a Minimum Wage Ordinance. (Community Development 256000)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Recommendation to Review Staff's Analysis and Provide Direction on Possible Next Steps, including Community Outreach, Determining Potential Fiscal Impacts, and Returning with a Minimum Wage Ordinance
BACKGROUND
In April, 2016, the State of California adopted legislation (SB 3, Leno) to reach a statewide $15 per hour minimum wage by January 1, 2023. After 2023, the minimum wage will be indexed annually for inflation (national Consumer Price Index, CPI), with a floor of zero percent and a ceiling of 3.5 percent. Many Bay Area cities have also enacted minimum wage ordinances with more aggressive timetables than the State's for reaching the $15 per hour level. In all of these local ordinances, once the $15 per hour level is reached, the minimum wage will continue to increase annually by the rate of the CPI. Hence, by reaching the $15 level sooner, and including the annual CPI adjustment, these jurisdictions will continually be above the state's minimum wage requirements.
Three Bay Area cities-Emeryville, Mountain View, and Sunnyvale-have already enacted a $15 minimum wage, and Berkeley's minimum wage will increase to $15 in October, 2018. Large employers located in Emeryville will pay the highest rate, which is currently $15.20 and expected to reach $15.60 in July, 2018. By comparison, the City of Alameda's current minimum wage, which follows the state standards, is $10.50 for small employers with 25 or fewer employees and $11.00 for those with over 25 employees.
On November 1, 2016, City Council in a referral directed staff to review enacting a minimum wage increase in Alameda. Staff has prepared a summary...
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