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File Number: 16-404 <br />at the July 5, 2016 meeting. That version is presented this evening. <br />The proposed ordinance would require that, beginning July 1, 2017, all employers in the City <br />of San Leandro (regardless of the number of employees) must pay their employees a <br />minimum wage of no less than $12.00 per hour. The minimum wage will then increase by one <br />dollar per hour on July 1st of each subsequent year until an hourly rate of $15.00 per hour on <br />July 1, 2020 is achieved. The schedule below is for illustration purposes only: <br />Minimum Wage Effective Date <br />$12/hour July 1, 2017 <br />$13/hour July 1, 2018 <br />$14/hour July 1, 2019 <br />$15/hour July 1, 2020 <br />If the statewide minimum wage for businesses of any size eventually meets or exceeds the <br />City of San Leandro’s minimum wage, then the City’s minimum wage ordinance and all of its <br />requirements would automatically sunset. Per the recently enacted statewide minimum wage <br />law, all employers in California (regardless of size) must pay a $15 per hour wage by January <br />1, 2023, unless the Governor delays the implementation schedule by initiating the “off-ramp” <br />provisions in the adopted legislation. <br />Enforcement & Penalties for Violation <br />Staff recommends that enforcement of the ordinance should be handled on a <br />complaint-driven basis. The City has never regulated wages on such a comprehensive and <br />universal manner, so it is currently unknown precisely what level of staff support will be <br />required to ensure compliance. For general estimation purposes, staff forecasts such <br />enforcement costs could be approximately $100,000 in the first year of implementation, which <br />could decrease in subsequent years thereafter (related to an information campaign, <br />continuing education, and some enforcement). For comparison purposes, the City of <br />Berkeley currently has a full-time staff person to enforce its local minimum wage ordinance. <br />The City of Emeryville contracts with a part time staff person to provide similar enforcement <br />work for its own minimum wage law. As such, staff recommends conducting further analysis <br />over the year ahead and building into the FY 2017-18 proposed budget sufficient resources to <br />handle the anticipated implementation and 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 were violated for each day or <br />portion thereof that the violation occurred or continued, along with fines imposed pursuant to <br />other provisions outlined in the attached draft ordinance or as allowed by state law. <br />Anticipated Impact on City Workforce & Budget <br />As of the date of this staff report, there are a number of part-time, non-permanent employees <br />in the City’s Recreation & Human Services Department and Library Department who make <br />less than the proposed minimum wage. Additionally, it is important to note that increasing the <br />wage of these classifications will cause compaction to other classifications, thereby causing <br />an increase in the hourly rate of pay for the Recreation Leader, Recreation Specialist, and <br />Office Assistant classifications. Under current staffing levels, there are approximately 130 <br />employees in these classifications who would be impacted either directly or through <br />Page 2 City of San Leandro Printed on 8/29/2016