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6 <br /> <br />Time Frame of Increasing the Minimum Wage <br />Almost all increases in the minimum wage at a statewide or local level have phased-in <br />the increase. This includes the State’s legislation, which increases the wage to $15.00 <br />over a six-year period. Currently, of the sixteen cities in the Bay Area that have enacted <br />minimum wage ordinances, all but two are phasing in their minimum wage increases <br />over three to four years. Out of those fourteen cities, six are phasing in their increases <br />over three years and eight are phasing in their increases over four years. Thirteen of the <br />sixteen cities are working towards a $15.00 minimum wage. Of those cities expected to <br />reach a $15.00 minimum wage, five cities are expected to reach the $15.00 by 2018, <br />seven cities will reach it by 2019 and the last city will reach it by 2020. <br /> <br />A phased approach provides time for businesses to adapt their cost structure and <br />pricing to reflect the increase. As further described in the policy options, the Council <br />could provide policy direction for a phased approach in increasing the minimum wage <br />more rapidly in Redwood City than the statewide level. This policy direction could also <br />include tying future increases in the minimum wage to changes in the Consumer Price <br />Index as the State and many cities do. <br /> <br />Exceptions and Exemptions <br />Based on business and stakeholder feedback, a number of cities have included different <br />exceptions and exemptions for types of industries, business sizes, youth workers <br />(training wages), collective bargaining agreements, and other specifications that are in <br />their local minimum wage ordinances. For example, in San Mateo, the city made an <br />exception for non-profits, allowing non-profits to have additional time (one year) to <br />comply with the increased levels. The City of Mountain View included an exemption for <br />State, Federal, and County agencies, including school districts, to allow these <br />government agencies to not pay the local minimum wage when the work performed is <br />related to their governmental function. Both San Mateo and Mountain View included <br />waivers for collective bargaining agreements, which allow for all or any portion of the <br />minimum wage requirements to be waived in a bona fide collective bargaining <br />agreement, if such a waiver is part of the agreement. <br /> <br />Minimum Wage Ordinance Enforcement <br />Establishing appropriate enforcement provisions is a key component of a minimum <br />wage ordinance. As part of adopting a local minimum wage ordinance, the City will need <br />to implement mechanisms to enforce its ordinance. Several cities with existing minimum <br />wage ordinances in Santa Clara County and the City of San Mateo have contracted with <br />the City of San Jose Office of Equality Assurance for enforcement services through a <br />complaint-driven model billed on a per task/fee basis. The City of San Jose is open to <br />entering into similar agreements with other cities in the region. <br /> <br />Community Engagement and Outreach Strategy <br />Conducting robust community engagement and communication activities with business <br />stakeholders and the community is of utmost importance in the successful examination, <br />preparation and implementation of a local minimum wage ordinance. Staff met with <br />representatives from the cities of Mountain View and San Mateo who recently <br />8.A. - Page 6