Laserfiche WebLink
File Number: 16-378 <br />2017, large employers in the City of San Leandro must pay employees a minimum wage of no <br />less than $12.00 per hour. The minimum wage for large employers will then increase by one <br />dollar per hour on July 1st of each subsequent year until achieving an hourly rate of $15.00 <br />per hour on July 1, 2020. Small employers will be allowed one additional year to implement <br />all increases subsequent to July 1, 2017, as detailed in the following schedule: <br />Minimum Wage Large Employer Effective Date Small Employer Effective Date <br />$12/hour July 1, 2017 July 1, 2018 <br />$13/hour July 1, 2018 July 1, 2019 <br />$14/hour July 1, 2019 July 1, 2020 <br />$15/hour July 1, 2020 July 1, 2021 <br />“Small Employer” is defined as any person, corporate officers or executives, who hold a <br />business license in San Leandro and who employs or exercises control over the wages, hours <br />or working conditions of 25 or less employees. <br />“Large Employer” is defined as any person, corporate officers or executives who hold a <br />business license in San Leandro who employs or exercises control over the wages, hours or <br />working conditions of 26 or more employees, or who operate more than 10 establishments <br />globally. <br />It should also be noted that if the statewide minimum wage for businesses of any size <br />eventually meet or exceed the above thresholds, the local wage requirements outlined in the <br />proposed ordinance will automatically sunset. Per the recently enacted statewide minimum <br />wage law, all employers in California (regardless of size) are expected to fully achieve a $15 <br />per hour wage by January 1, 2023, unless the Governor delays the implementation schedule <br />by initiating the “off-ramp” provisions in the adopted legislation. <br />Enforcement & Penalties for Violation <br />City staff recommends that enforcement of the ordinance be handled on a complaint-driven <br />basis. The City has never before regulated wages on such a comprehensive and universal <br />manner, so it is currently unknown precisely what level of staff support will be required to <br />ensure compliance. For general estimation purposes, staff forecasts such enforcement costs <br />could be approximately $100,000 in the first year of implementation, which would decrease in <br />subsequent years thereafter (related to an information campaign, continuing education, and <br />some enforcement). For comparison purposes, the City of Berkeley currently has a full-time <br />staff person to enforce its local minimum wage ordinance. The City of Emeryville contracts <br />with a part time staff person to provide similar enforcement work for its own minimum wage <br />law. As such, staff recommends conducting further analysis over the year ahead and building <br />into the FY 2017-18 budget sufficient resources to handle the anticipated implementation and <br />monitoring costs. <br />Should a local business be found out of compliance with the ordinance, the business would <br />be required to pay back wages unlawfully withheld or underpaid, and the payment of a civil <br />penalty of $25.00 to each employee or person whose rights under this Chapter were violated <br />for each day or portion thereof that the violation occurred or continued, along with fines <br />imposed pursuant to other provisions outlined in the attached draft ordinance or as allowed by <br />state law. <br />Page 2 City of San Leandro Printed on 7/13/2016 <br />390