HomeMy WebLinkAboutItem 08 - Minimum Wage adjustments for 2021 per the California Fair Wage Act of 2016 Department Name: Human Resources
Cost Center: 3001
For Agenda of: October 20, 2020
Placement: Consent
Estimated Time: N/A
FROM: Monica Irons, Human Resources Director
Prepared By: Brittani Roltgen, Human Resources Analyst
SUBJECT: MINIMUM WAGE ADJUSTMENTS FOR 2021 PER THE CALIFORNIA FAIR
WAGE ACT OF 2016
RECOMMENDATION
Adopt a Resolution modifying the Supplemental Employee Salary Schedule as necessary to
comply with the California Fair Wage Act of 2016 requiring a minimum wage of $14.00 per
hour effective December 24, 2020 (Attachments A & B).
DISCUSSION
Background
A qualified supplemental or temporary workforce is instrumental to the City of San Luis
Obispo’s ability to provide consistent services to the community by adjusting more easily and
quickly to workload fluctuations, unexpected vacancies, leaves of absence, or demands from
limited-term projects, seasonal, or peak periods. A supplemental workforce also provides
programs that would otherwise be difficult to staff due to the intermittent, seaso nal, or non-
traditional work hours (e.g., early mornings, weekends, evenings, etc.). For example, the City’s
Parks and Recreation Department typically employs over 200 supplemental, part-time (less than
30 hours per week on average) employees at any given time. While many of these employees
are seasonal (working only 3-5 months), they sustain programs and services essential to the
community. Examples of these programs are providing before and after school care, summer
children’s camps, ensuring pool safety, special events, senior programs, and maintenance of the
golf course and open space.
Departments across the organization utilize supplemental staff, and in some cases, the City has
experienced increasing difficulty recruiting and retaining qualified candidates. In particular,
supplemental positions that require certifications or State licenses, such as childcare teachers and
lifeguards, have been particularly challenging to fill during the past few years. During the 2020
minimum wage update, the staff made significant adjustments to the salary ranges associated
with these classifications. Since then, there have been fewer recruitment and retention issues.
While some challenges still exist, staff believe these are not related to compensation. Over the
next year, Parks and Recreation staff will monitor the recruitment and retention challenges in
their programs. It will work with the Human Resources staff to provide recommendations to
address these at the 2022 minimum wage update if needed.
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Salary Schedule Reflects Minimum Wage Increase
During the first two years of the Fair Wage Act of 2016’s impacts, the City’s response was to
eliminate supplemental salary ranges or steps within salary ranges below minimum wage. The
effect of this approach is that employees with less experience or qualifications earn the same as
employees who have more experience with the City. This approach creates a condition called
“compaction,” which describes a lack of differentiation between more and less seasoned or
experienced employees. Staff addressed compaction issues during the second two years (2019
and 2020) of the Fair Wage Act of 2016’s impacts through adjusting the salary model and
providing additional increases to impacted positions, such as the childcare career series. Staff has
been monitoring recruitment and retention results with the new model and found that it has
addressed many identified issues.
One of the remaining recruitment and retention issues is in Parking Services, which have been so
prominent the department is using a staffing firm in order to hire supplemental parking
employees, which has resulted in the department paying an additional service fee. As a result,
staff recommends increasing the base rate for Parking Ambassadors to $15 per hour and Lead
Parking Attendants to $16.07 per hour to reduce the need to hire through a staffing agency. By
directly hiring supplemental staff, the Parking Services Division will end up paying less on an
hourly basis than they have been through the staffing agency. As a result of the actions taken last
year that increased salary ranges above the legal requirements and the ongoing impacts of the
COVID-19 pandemic, staff recommends minimal changes to the rest of the supplemental salary
schedule for 2021:
Classifications Increased Due to Minimum Wage:
• Facility Host
• Fire Intern
• Hydrant Maintenance Worker
• Intern I
• Rec Cashier
• Youth Sports Official
• Childcare Aide
• Lifeguard
• Ranger Services Worker
Classifications Increased Due to Compaction:
• Facilities Assistant
• Intern II
• Intern III
Policy Context
Recommendations in this report are following the Fair Wage Act of 2016 (Attachment C).
Public Engagement
This item is on the agenda for the October 20, 2020 City Council meeting and will follow all
required postings and notifications. The public may comment on this item at or before the meeting.
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CONCURRENCE
Human Resources staff worked closely with Parks and Recreation staff to ensure the
recommendations will not create additional recruitment and retention issues since the Parks and
Recreation Department employs most supplemental employees within the City. Additionally, the
Human Resources staff worked with Parking Division staff as there have been documented
recruitment and retention issues within Parking classifications. All other departments with
supplemental staff could provide specific input for their department’s needs.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report
because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021
Funding Identified: N/A
Fiscal Analysis:
Staff anticipated the January 2021 increase to minimum wage, therefore, staff appropriately
budgeted funds for the 2020-21 fiscal year. During the 2020-21 Budget Supplement, departments
reduced their budgets to 2019-20 levels. As a result, individual departments may have decreased
their supplemental staffing budgets based on updated needs or fiscal availability. Additi onally,
with the ongoing impacts of COVID-19 on programs, supplemental staff hours may fluctuate
depending on local restrictions. Due to these variables, staff cannot anticipate any financial impact
as a direct result of these salary range adjustments. However, there is no identified additional
budgetary impact expected based on the original 2020-21 budgets for supplemental staff.
ALTERNATIVES
Do not adopt the 2021 Minimum Wage Compliant Supplemental Employee Salary Schedule.
This is not advised as it would put the City in a position of being non-compliant with State law.
Attachments:
a - Draft Resolution
b - Supplemental Salary Ranges 201224
c - Fair Wage Act of 2016
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R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING AND ADOPTING A
SUPPLEMENTAL EMPLOYEE SALARY SCHEDULE AND
SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City of San Luis Obispo remains committed to providing high-quality
service to the community and recognize the City’s commitment to fiscal responsibility; and
WHEREAS, the City understands a qualified supplemental workforce is instrumental to
its ability to provide consistent and high-quality services and programs to the community; and
WHEREAS, the California Fair Wage Act of 2016 requires periodic adjustments in the
state minimum wage; and
WHEREAS, the City Council has the exclusive authority to fix the salaries and
compensation of local officials and employees pursuant to the San Luis Obispo Charter Section
711.
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Resolution No. _____ (2020 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby adopts the Supplemental Employee Salary Schedule outlined in Exhibit A, and this
compensation change will be effective December 24, 2020. All prior Resolutions are hereby
superseded to the extent inconsistent herewith.
Upon motion of Council Member _________________, seconded by Council Member
______________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on _______________________.
____________________________________
Teresa Purrington
City Clerk
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Supplemental Employee Salary Schedule
Classification Class Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9
Accounting Assistant I 9132 914 18.11$ 18.46$ 18.81$ 19.37$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$
Administrative Aide I 9172 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Administrative Aide II 9371 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Administrative Specialist 9472 910 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Adult Sports Official 9265 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Aquatics Specialist*9461 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Childcare Aide Emergency Sub Afternoon*91615 970 17.81$ 18.26$ 18.71$ 19.16$ 19.60$ 20.09$ 20.58$ 20.98$ 21.38$
Childcare Aide Emergency Sub Morning*91619 971 21.38$ 21.92$ 22.46$ 22.99$ 23.52$ 24.11$ 24.69$ 25.17$ 25.65$
Childcare Aide*9161 902 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$
Childcare Teacher Emergency Sub Afternoon*92625 972 19.60$ 20.09$ 20.58$ 21.07$ 21.56$ 22.10$ 22.64$ 23.08$ 23.51$
Childcare Teacher Emergency Sub Morning*92629 973 23.52$ 24.11$ 24.69$ 25.28$ 25.88$ 26.52$ 27.17$ 27.69$ 28.22$
Childcare Teacher*9262 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Commissioner 9861 990 75.00$
Community Services Specialist 9462 910 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Development Review Arborist 9288 924 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$
Engineering Consultant 9332 980 50.00$ 51.56$ 55.00$ 65.00$ 75.00$
Facilities Aide Farmer's Market 9292 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Facilities Aide Pool 9293 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Facilities Assistant 9264 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Facilities Specialist 9463 910 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Facility Host 9162 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Fire Intern 9151 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Flood Control Technician 9287 916 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
GIS Technician 9231 916 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Golf Maintenance Assistant*9291 902 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$
Hazardous Materials Team Business Manager 9651 996 28.00$ 29.00$ 30.00$
Head Childcare Teacher Emergency Sub Afternoon*93605 974 20.58$ 21.07$ 21.56$ 22.10$ 22.64$ 23.18$ 23.71$ 24.31$ 24.90$
Head Childcare Teacher Emergency Sub Morning*93609 975 24.69$ 25.28$ 25.88$ 26.52$ 27.17$ 27.81$ 28.46$ 29.17$ 29.88$
Head Childcare Teacher*9360 912 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$
Head Lifeguard*9351 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Hydrant Maintenance Worker 9191 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Intern I 9111 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Intern II 9211 906 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$
Intern III 9311 910 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
IT Assistant Help Desk 9232 916 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Lab Analyst 9235 937 28.63$ 30.14$ 31.73$ 33.40$ 35.16$ 37.01$ 38.96$ 41.01$ 43.175
Landscape Inspector 9282 918 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Key
Blue = P&R Positions
* = Classifications that work with children
(AB 218 doesn't apply)
EXHIBIT A Item 8
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Lead Parking Attendant 9471 910 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Legal Assistant I 9131 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Legal Assistant II 9233 916 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Lifeguard Dock Pay*92519 900 14.00$
Lifeguard*9251 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Mutual Aid GS 11-15 9353 995 36.84$ 44.16$ 52.51$ 62.05$ 72.99$
Mutual Aid GS 1-5 9153 993 14.00$ 14.20$ 16.00$ 17.98$ 20.10$
Mutual Aid GS 6-10 9254 994 22.40$ 24.90$ 27.57$ 30.45$ 33.54$
Parking Ambassador 9271 906 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$
Parking Enforcement Officer 9266 916 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Parking Meter Repair Worker 9286 918 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Parks Maintenance Aide I 9182 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Parks Maintenance Aide II 9281 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Police Operations Support Specialist 9212 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Ranger Services Specialist*9466 912 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$
Ranger Services Worker 9181 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Rec Cashier*9171 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Recording Secretary 9272 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Senior Administrative Analyst 9333 948 33.99$ 36.37$ 38.31$ 40.33$ 42.45$
SNAP 9352 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Special Swim Instructor*9369 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Swim Instructor*9263 908 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Transportation Planner Engineer I 9133 940 30.55$ 31.32$ 32.08$ 32.85$ 33.61$ 34.45$ 35.29$ 36.13$ 36.97$
Tree Climber Assistant 9192 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Utility Billing Assistant 942702 9419 21.14$ 22.25$ 23.43$ 24.66$ 25.96$
WasteWater Collection Operator 9283 918 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Water Quality Lab Aide 9141 904 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Water Resources Technician 9241 936 28.14$ 29.61$ 31.18$ 32.81$ 34.54$
WRRF Operator 9285 937 28.63$ 30.14$ 31.73$ 33.40$ 35.16$ 37.01$ 38.96$ 41.01$ 43.18$
Youth Services Specialist Emergency Morning*94649 976 25.88$ 26.52$ 27.17$ 27.81$ 28.46$ 29.17$ 29.88$ 30.59$ 31.31$
Youth Services Specialist*9464 913 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Youth Sports Official*9261 900 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
RETIRED ANNUITANTS:Class Schedule Step 1 Step 2 Step 3 Step 4 Step 5
IT Assistant PERS Retiree 9931 962 24.10$ 25.25$ 26.51$ 27.78$ 28.78$
Accounting Assistant III PERS Retiree 9924 9423 22.26$ 23.44$ 24.68$ 25.98$ 27.34$
Parking Coordinator PERS Retiree 9971 964 25.67$ 26.70$ 28.10$ 29.58$ 31.13$
Financial Analyst PERS Retiree 9922 9305 31.43$ 33.40$ 35.36$ 37.33$ 35.36$
Parking Enforcement Officer PERS Retiree 9961 960 21.91$ 22.95$ 24.10$ 25.25$ 26.51$
Supervising Adminsitrative Assistant PERS Retiree 9921 964 25.36$ 26.51$ 27.78$ 29.16$ 31.13$
Temp Senior Civil Engineer PERS Retiree 9932 966 39.33$ 42.93$ 44.53$ 46.76$ 49.13$
Effective 12/24/2020
EXHIBIT A Item 8
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To: The Office of the Attorney General
ATTN: Ashley Johannson, Initiative Coordinator
1300 I Street, 17th Floor
Sacramento, CA 95814
(916) 445-4752 I www.oag.ca.gov
1 5 -0 0 3 2
~CEIVE()
MAY 2 7 2015
INITIATIVE COORDINATOR
ATTORNEY GENERAL'S OFFICE
RE: Request for Circulating Title and Summary; Signed Certifications; The Fair Wage Act of 20'16
Dear Ms. Johansson:
Pursuant to Article II, Section 10(d) of the California Constitution, this letter respectfully requests that
the Attorney General prepare a circulating title and summary of the enclosed proposed statewide
initiative: "The Fair Wage Act of 2016." Also enclosed are the required signed statements pursuant to
California Elections Code sections 9001 and 9608, and a check in the amount of $200. Our addresses as
registered voters are included in this letter.
Please direct all inquiries and correspondence regarding this proposed initiative to:
Amber Maltbie
Nossaman, LLP
777 S. Figueroa Street, 34th Floor
Los Angeles, CA 95814
Phone: 213-612-7803
Email: amaltbie@nossaman.com
Enclosures: Initiative language; Certifications, money order
9176011.v1
Sincerely,
L-
ve Trossman, Proponent
1616 N. Easterly Terrace
Los Ang I s, CA 90026
3622 Rever
Los Angeles, CA 90039
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-· 1 5 -0 0 3 2
The Fair Wage Act of2016
, This initiative measure is submitted to the people in accordance with the provisions of
Article II, Section 8, of the California Constitution.
This initiative measure amends and adds sections to the Labor Code; therefore, existing
provisions proposed to be deleted are printed in strikeout type and new provisions proposed to be
added are printed in italic type to indicate that they are new.
SEC. 1. Name.
This act shall be known as the Fair Wage Act of2016.
SEC. 2. Findings and Purpose.
The People of California find and declare that:
(a) The purpose of The Fair Wage Act of2016 ("the Act") is to ensure that workers
receive wages that will financially support them and their families.
(b) To achieve this purpose, The Fair Wage Act of2016 will increase the minimum
wage by $1 per hour each January 1 until it reaches $15 per hour in 2021, and in
each year thereafter the minimum wage will be adjusted to keep pace with the
cost of living in California.
(c) Many working Californians, including parents and seniors, have full-time jobs yet
struggle to make ends meet. The minimum wage has not kept pace with the cost
ofliving and is worth less today than it was 50 years ago. This loss of purchasing
power means millions of Californians are unable to afford an adequate standard of
living, which harms families and the State's economy and budget.1
(d) Almost one-quarter of California residents live in poverty? More than half of
California minimum wage earners are over 3 0 years old and thirty percent have
children? Californians cannot support a family on the current minimum wage of
$10 per hour, or $20,800 per year, for people working full time.
(e) Despite being employed full-time, Californians who are paid the current
minimum wage often must rely on the State's social safety net to meet their basic
needs.
(f)
(g)
(h)
The purchasing power of the minimum wage will continue to erode if it is not
adjusted yearly to reflect increases in the cost of living.
Raising the minimum wage will increase the earnings of many Medi-Cal
recipients, making them eligible for federal subsidies on California's health
benefit exchange, saving the State millions of dollars a year in Medi-Cal costs.4
Raising the minimum wage will boost economic activity and increase sales and
income taxes. 5
1 http://www .ir le. berkeley. edu/ cwed/briefs/20 14-02. pdf
2 http://www .census .gov I content/ dam/Census/library/publications/20 14/ demo/p60-251. pdf
3 http://www.irle.berkeley.edu/cwedlbriefs/2014-02.pdf
4 http://www .ir le. berkeley .edu/ cwed/briefs/20 14-02. pdf
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SEC3.
(i)
G)
(k)
Californians working in a wide variety of jobs and industries are paid the
minimum wage, and it is the goal of this Act to protect all such workers,
regardless of whether they are employed by single, multiple, or joint employers.
To this end, the People confirm Guerrero v. Superior Court (2013) 213 Cal. App.
4th 912, which recognized thatthe state minimum wage law protects low-wage
workers with multiple or joint employers, including, for example, persons
employed under the In-Home Supportive Services Act (Welf. & Inst. Code
§ 12300 et seq.).
The Act also will ensure that the California Department of Industrial Relations
publicizes changes to the minimum wage, as it has when the minimum wage has
been increased in the past.
The People intend that the Legislature or the Industrial Welfare Commission may
narrow or eliminate current exemptions from state minimum wage requirements,
but may not expand current exemptions or create new exemptions from state
minimum wage requirements.
Section 1182.12 of the Labor Code is amended, to read:
§ 1182.12. Minimum wage
(a) Notwithstanding any other provision ofthis part, on and after July 1, 2014, the
minimum \vage for all industries shall be not less than nine dollars ($9) per hour,
and on and after January 1, 2016, the minimum Vf'age for all industries shall be not
less than ten dollars ($10) per hour. January 1, 2017, the minimum wage for all
industries shall be not less than eleven dollars ($11) per hour, and shall be raised
by one dollar ($1) per hour each subsequent January 1 until it reaches fifteen
dollars ($15) per hour in 2021, and thereafter shall be adjusted each January 1 to
keep pace with the increasing cost of living, as described in subdivision (b).
(b) (1) On and after January 1, 2022, the minimum wage for all industries shall be
not less than an amount that is the result of an automatic adjustment on January 1
of each year, so the minimum wage keeps pace with the cost of living, as provided
in paragraph (2).
(2) On or before October 15, 2021, and on or before eachfollowing October 15,
the California Department of Industrial Relations shall calculate an adjusted
minimum wage to maintain employee purchasing power by increasing the current
year's minimum wage by the rate of inflation. The adjusted minimum wage shall
be calculated to the nearest cent using the California Consumer Price Index for
Urban Wage Earners and Clerical Workers, or a successor index, for the twelve
months prior to each September 1 as calculated by the California Department of
Industrial Relations. Each adjusted minimum wage increase calculated under
this paragraph (2) takes effect on the following January 1.
(c) · This section shall not be construed to preclude an increase of the minimum wage
for any or all industries by the Industrial Welfare Commission to an amount
greater than the tate required pursuant to subdivision (a) or (b). Nor shall'this
section be construed to permit a decrease in the minimum wage if, as calculated
pursuant to subdivision (b), the rate of inflation is negative.
5 http://www.irle.berkeley.edu/cwedlbriefs/2014-02.pdf
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(d)
SEC. 4.
No later than October 15 of each year, commencing October 15, 2017, the
California Department of Industrial Relations shall publicize the minimum wage
for all industries that will take effect the following January 1.
Amendment.
Pursuant to subdivision (c) of Section 10 of Article II of the California Constitution, this Act
may be amended either by a subsequent measure submitted to a vote of the people at a statewide
election or by statute validly passed by the Legislature and signed by the Governor, but only to
further the purposes of the Act and not to reduce the minimum wage required by this Act.
SEC 5. Severability.
It is the intent of the People that the provisions of this Act are severable and that if any provision
of this Act, or the application thereof to any person or circumstance, is held invalid, such
invalidity shall not affect any other provision or application of this Act that can be given effect
without the invalid provision or application.
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