Laserfiche WebLink
1 <br /> <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />September 25, 2017 <br />SUBJECT <br />Local Minimum Wage in Redwood City <br /> <br />RECOMMENDATION <br />Receive information on a local minimum wage and provide direction to staff on policy <br />options and community outreach program <br /> <br />BACKGROUND <br />As part of the FY 2017-18 budget development process, on June 12, 2017, the City <br />Council provided direction to consider establishing a local minimum wage for employers <br />that maintain a business in the City or perform any work/service within the City limits. <br />Additionally, the City Council directed staff to work with the City Council’s Finance and <br />Audit Sub-Committee as staff examines and prepares a recommended local minimum <br />wage ordinance. This report will provide an initial look at local minimum wage <br />requirements and identify potential policy options for the Council to consider. <br /> <br />In preparation for this report, on August 28, 2017, staff met with the Finance and Audit <br />Sub-committee to review local minimum wage requirements and community outreach <br />strategies. <br /> <br />Federal, State and Local Minimum Wages <br />The minimum wage established by Federal, State and local government law sets the <br />lowest wage an employer may legally pay to workers. As of January 1, 2017, California <br />law requires the minimum wage for all industries to be no less than $10.00 per hour for <br />businesses with less than 25 employees and $10.50 per hour for businesses with 26 or <br />more employees. The Federal minimum wage for covered nonexempt employees has <br />been $7.25 per hour since July 24, 2009. <br /> <br />On April 4, 2016, California Governor Jerry Brown signed legislation (SB 3, Leno) which <br />will raise California’s minimum wage to $15.00 per hour by 2022. After January 1, 2023, <br />future wage increases are tied to inflation, reflecting increases in the Consumer Price <br />Index, up to 3.5% per year. Under the new state law, the wage increase schedule may <br />be temporarily suspended by the Governor during economic downturns. The increased <br />minimum wage levels would be applied uniformly across the state. The law also <br />maintains existing exemptions in the State’s minimum wage law. This legislation gives <br />California the highest minimum wage in the country along with New York. <br /> <br />8.A. - Page 1