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boundaries. Covered employees are entitled to these rights regardless of immigration <br />status. <br /> <br />Amount and Timeframe <br />The draft ordinance increases the minimum wage for employees working in Redwood <br />City in increments. The rate of increase follows similar minimum wage increases <br />enacted in the Cities of San Mateo and Belmont: San Mateo began an increased <br />minimum wage program in January 2017 and Belmont will begin their program in July <br />2018. <br /> <br />The first local wage increase for Redwood City would occur in January 2019 to allow for <br />public outreach/notification, contract for implementation services, and to provide <br />businesses lead time to prepare business plans and budgets to adapt to the wage <br />increase. The draft ordinance increases the minimum wage in two increments in 2019 <br />and 2020. The first increase would occur on January 1, 2019 and increases the <br />minimum wage from the statewide level of $12.00 per hour to $13.50 per hour. The <br />second increase would occur on January 1, 2020 and raises the wage to $15.00 per <br />hour. To align with the State and other local minimum wage ordinances, the step <br />increases occur on January 1 of the respective year. While the State provides two tiers <br />for minimum wage increases (one for businesses with 25 or fewer employees, one for <br />employers with 26 or more employees), the draft Redwood City ordinance has a single <br />minimum wage schedule for all employers. <br /> <br />Starting on January 1, 2021, all employers in Redwood City would be subject to annual <br />Consumer Price Index (CPI) increases based on the San Francisco-Oakland-San Jose <br />regional CPI. In January 2021 the Redwood City minimum wage will be increased by <br />the 2020 and 2019 CPI; this will align Redwood City’s minimum wage with the City of <br />Belmont and City of San Mateo minimum wage programs. It is important to note that, <br />with this schedule, the City of Redwood City minimum wage will always be higher than <br />the state minimum wage, because the City CPI increases would go into effect two years <br />earlier than the state CPI increases (which begin in 2023). <br /> <br /> <br />City of Redwood City Proposed Minimum Wage <br />Effective Date <br />State of CA (26 + <br />Employees) <br />City of Redwood City <br />(Proposed) <br />January 1, 2019 $12.00 $13.50 <br />January 1, 2020 $13.00 $15.00 <br />January 1, 2021 $14.00 $15.00 + 2020 CPI + 2019 CPI* <br />January 1, 2022 $15.00 + CPI <br />January 1, 2023 $15.00 + CPI + CPI <br />Attachment 26.3.A. - Page 20