Laserfiche WebLink
CITY OF SAN LEANDRO LIVING WAGE ORDINANCE <br />Frequently Asked Questions <br />1. What is the City of San Leandro's Living Wage Ordinance? <br />"Living wage" is an hourly wage level that sets wages at a level higher than the Federal or <br />State minimum wage. The City of San Leandro Ordinance specifies that an hourly wage and <br />a health benefit dollar level be applied to certain contracts, agreements and leases <br />between the City and for-profit and non-profit entities. It does not apply to every business <br />in the City. <br />2. When does the Living Wage take effect and when do businesses have to start <br />complying and provide higher wages to their employees? <br />September 1, 2007 is the effective date. Applicable businesses must comply with the <br />Ordinance when they enter into a lease, contract or concessionaire or other agreement <br />with the City of San Leandro, or when an existing agreement is amended to benefit the <br />business. <br />For example, if a lease contract expires in two years, compliance would not be required for <br />the two years the lease remains in effect and unchanged. New contracts entered into or <br />amended thereto affecting financial aid or expending the term after the effective date are <br />subject to the Ordinance. Covered employees would be entitled to the higher wage on the <br />effective date of the new or modified contract or agreement. <br />All contracts and agreements with the City of San Leandro will include the requirement that <br />the Living Wage Ordinance shall be complied with. <br />3. What is the required Living Wage rate? <br />Covered businesses are required to pay no less than $12.40 per hour, which includes wages <br />and employer health benefits. Health benefits must be valued at $1.50 per hour in order to <br />be counted towards the requirement. In other words, an employee not receiving any <br />employer health benefits would receive an hourly wage of at least $12.40, while one <br />receiving health benefits would received an hourly wage of at least $10.90. <br />The living wage rate will be adjusted annually in July to reflect the consumer price index. <br />4. Are tips and gratuities considered compensation for meeting the Living Wage <br />requirement? <br />Yes, provided that the employer can demonstrate to the City that such employees who <br />receive compensation, including gratuities (whether directly or indirectly), in connection <br />with the work they perform for their employer, equal to or exceeding the Living Wage Rate. <br />Living Wage Ordinance Page 3 <br />