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2A Work Session 2016 0613
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2A Work Session 2016 0613
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6/5/2019 8:10:11 AM
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6/7/2016 4:56:31 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
6/13/2016
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_CC Agenda 2016 0613 WS
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Fact Sheet: Boosting California's Minimum Wage to $15/Hour <br />Scheduled Wage Increases (If No Increases Are Paused <br />26 Emnlovees or More 25 Emnlovees or Less <br />$10.50/hour <br />January 1, 2017 <br />January 1, 2018 <br />$11/hour <br />January 1, 2018 <br />January 1, 2019 <br />$12/hour <br />January 1, 2019 <br />January 1, 2020 <br />$13/hour <br />January 1, 2020 <br />January 1, 2021 <br />$14/hour <br />January 1, 2021 <br />January 1, 2022 <br />$15/hour <br />January 1, 2022 <br />January 1, 2023 <br />Off -Ramp Provisions <br />Governor can choose to pause any scheduled increase for one year if either economy or budget <br />conditions are met. The increase to $10.50/hour is not subject to off -ramps. Initial determination of <br />Governor by August 1 of each year prior to a January increase. The Governor makes the final <br />determination by September 1. <br />1. Economy <br />Governor has the ability to pause an increase if seasonally adjusted statewide job growth for either <br />the prior 3 or 6 months is negative and retail sales receipts for the prior 12 months is negative. <br />2. Budget <br />Governor has the ability to pause an increase if any year from the current budget year to two <br />additional years is forecasted to be in deficit when including the next scheduled increase. Pursuant <br />to Proposition 2, a multiyear forecast is adopted as part of the annual Budget Act. A deficit is if the <br />operating reserve is projected to be negative by more than 1 percent of annual revenues, currently <br />about $1.2 billion. The budget off -ramp can only be used twice. <br />Indexing <br />Index annually for inflation (national CPI) beginning the first January 1 after small businesses are at <br />$15/hour. Floor of 0 percent (no decreases) and a ceiling of 3.5 percent. Off -ramps do not apply <br />once the state gets to $15/hour. <br />IHSS Sick DUs <br />Implementation of one sick day in July 2018. Second day added in the first July following $13/hour <br />implementation for larger businesses, and third day added following $15/hour implementation. <br />Effect on Workers <br />There are approximately 7 million hourly workers in California. Almost 2.2 million workers are <br />currently paid minimum wage. <br />Annual income of full-time work at minimum wage: <br />2016 at $10 per hour: $20,800 <br />2022 at $15 per hour: $31,200 <br />For comparison, the Federal Poverty Level for 2016 is $24,300 for a family of 4. <br />
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