AgdaPkt 2018-04-09 Joint SA PFA - Laserfiche WebLink

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businesses to adjust to a fifteen-dollar minimum wage in one step. Also, some businesses stated that the wage increases should take effect in one-year increments rather than six month increments as there is significant payroll administration work that has to be conducted to readjust employee wages, and six months is not enough time before they have to readjust wages again. Some businesses had concerns regarding wage compaction for veteran and up line employees, as most businesses currently pay above the state minimum wage, and if there is a new local minimum wage, they will need to pay their employees higher than the local minimum wage. Some conveyed that the increase in minimum wage would also increase operating costs on FICA, Medicare and workers compensation as they are tied to employee compensation. Additionally, some restaurateurs had concerns around the impact of restaurant servers (tipped employees) and the wage disparity with kitchen staff. A common theme from business owners was that rent increases were a greater burden than prospective minimum wage increases. Attendees at the various stakeholder meetings including the Downtown Business Group, Redwood City Auto Dealerships, Redwood City Improvement Association, Redwood City – San Mateo County Chamber of Commerce, San Mateo County Convention and Visitors Bureau, and the Seaport Industrial Association all indicated that they were in general support of the increase to the minimum wage. Many of the members of these organizations were already paying their employees $15.00 an hour or more in order to attract and retain quality employees within their organizations and businesses. In addition to their support of the increase, each of these organizations committed to assisting the City in helping to distribute information about the proposed change to their members who were not present at the meeting. Additionally, the Chamber of Commerce surveyed their membership and the majority of respondents supported the City’s proposed wage increase. Nonprofits Ten nonprofit organizations located in Redwood City attended a minimum wage roundtable discussion organized by the Thrive Alliance of Nonprofits in San Mateo County. The majority of nonprofit agencies in attendance supported the City moving forward with a minimum wage increase. Every nonprofit agency in attendance was currently paying their employees more than $15.00 per hour. They stated that the increased salary is needed to retain staff as staff members have left and moved away due to the high cost of housing. Nonprofit employers are challenged to pay more than the minimum wage because most have fixed revenue streams and are not able to charge higher prices or receive additional funding from the state, foundations, or donors. Some nonprofits advocated for training wages for new employees for a training period at the beginning of employment. Attachment 26.3.A. - Page 18