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CITY OF SAN LEANDRO LIVING WAGE ORDINANCE Frequently Asked Questions 1. What is the City of San Leandro's Living Wage Ordinance? "Living wage" is an hourly wage level that sets wages at a level higher than the Federal or State minimum wage. The City of San Leandro Ordinance specifies that an hourly wage and a health benefit dollar level be applied to certain contracts, agreements and leases between the City and for-profit and non-profit entities. It does not apply to every business in the City. 2. When does the Living Wage take effect and when do businesses have to start complying and provide higher wages to their employees? September 1, 2007 is the effective date. Applicable businesses must comply with the Ordinance when they enter into a lease, contract or concessionaire or other agreement with the City of San Leandro, or when an existing agreement is amended to benefit the business. For example, if a lease contract expires in two years, compliance would not be required for the two years the lease remains in effect and unchanged. New contracts entered into or amended thereto affecting financial aid or expending the term after the effective date are subject to the Ordinance. Covered employees would be entitled to the higher wage on the effective date of the new or modified contract or agreement. All contracts and agreements with the City of San Leandro will include the requirement that the Living Wage Ordinance shall be complied with. 3. What is the required Living Wage rate? Covered businesses are required to pay no less than $12.40 per hour, which includes wages and employer health benefits. Health benefits must be valued at $1.50 per hour in order to be counted towards the requirement. In other words, an employee not receiving any employer health benefits would receive an hourly wage of at least $12.40, while one receiving health benefits would received an hourly wage of at least $10.90. The living wage rate will be adjusted annually in July to reflect the consumer price index. 4. Are there any other required employee benefits specified? Yes. It specifies that employees must receive at least 22 days off per year (calendar) for sick leave, vacation, holiday, or personal necessity. At least 12 of the required days off shall be compensated at the same rate as regular compensation while 10 of the required 22 days may be uncompensated days off. Part-time employees shall be entitled to accrue compensated days off in increments proportional to that accrued by full-time employees. Employees shall be eligible to use accrued days off after the first 6 months of satisfactory employment or in accordance with the employer's policy, whichever is sooner. Living Wage Ordinance Page 3