HomeMy WebLinkAboutItem 5f. Adopt a Supplemental Salary Schedule Reflecting 2023 Minimum Wage Increases Item 5f
Department: Human Resources
Cost Center: 3001
For Agenda of: 10/5/2022
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Brittani Roltgen, Human Resources Manager
SUBJECT: ADOPT A SUPPLEMENTAL SALARY SCHEDULE REFLECTING 2023
MINIMUM WAGE INCREASES
RECOMMENDATION
Adopt a modified Supplemental Employee Salary Schedule as necessary to comply with
Senate Bill No. 3, Chapter 4, an act to amend Sections 245.5, 246, and 1182.12 of the
Labor Code (hereafter referred to as Senate Bill 3), relating to labor, requiring a minimum
wage of $15.50 per hour effective December 22, 2022.
POLICY CONTEXT
Recommendations in this report are following Senate Bill 3 (Attachment 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, seasonal, or non-traditional work hours (e.g., early mornings, weekends,
evenings, etc.). For example, the City’s Parks and Recreation Department typically
employs about 150 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
three to five 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.
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Item 5f
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, staff made significant adjustments to
the salary ranges associated with these classifications. Since the compensation changes
have been implemented, there have been fewer recruitment and retention issues. There
continue to be staffing shortages for certain positions, such as lifeguards. The shortages
appear to be related to specific shift times, which staff view as a programmatic concern
as opposed to a compensation concern.
Supplemental Salary Schedule Reflects Minimum Wage Increase
During the first two years of Senate Bill 3’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 ha ve been monitoring recruitment and retention
results with the new model and found that it has addressed many identified issues. A
provision in Senate Bill 3 states that minimum wage will increase by the lesser of 3.5% or
US CPI-W (the United States Bureau of Labor Statistics non-seasonally adjusted United
States Consumer Price Index for Urban Wage Earners and Clerical Workers ), with the
results rounded to the neared $0.10. This brings the California minimum wage amount to
$15.50 for 2023. As a result, staff recommends both minimum wage and compaction
driven changes to the supplemental salary schedule for 2023.
Previous Council or Advisory Body Action
Council has been approving updates to minimum wage annually since 2016 based on the
Fair W age Act of 2016. The most recent Council approval was on October 19, 2021, for
the 2022 minimum wage changes.
Public Engagement
This item is on the agenda for the October 4, 2022, City Council meeting and will follow
all required postings and notifications. The public may comment on this item at or before
the meeting.
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 provided recommendations of classification
placement to fiscal officers across all City departments and requested feedback.
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Item 5f
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: No Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Due to the supplemental staff turnover over the past year, departments are able to absorb
the cost associated with minimum wage within their appropriated department budgets for
supplemental staffing.
ALTERNATIVES
1. Do not adopt the 2023 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.
2. Only make legally required updates for minimum wage (Grade 900). This is not
advised as it would cause compaction issues as well as recruitment and retention
issues
ATTACHMENTS
A - Supplemental Salary Ranges
B - Senate Bill No. 3, Chapter 4 (An act to amend Sections 245.5, 246, and 1182.12 of
the Labor Code)
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Supplemental Employee Salary ScheduleClassificationEEO CategoryEEO FunctionClass Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8Step 9Accounting Asssistant II 6 1 9234 419 22.00$ 23.16$ 24.38$ 25.66$ 27.01$ -$ -$ -$ -$ Administrative Aide I 5 1 9172 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Administrative Aide II 6 1 9371 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Administrative Assistant III 6 1 943700 423 24.39$ 25.68$ 27.03$ 28.45$ 29.95$ -$ -$ -$ -$ Administrative Specialist5 1 9472 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Adult Sports Official5 6 9265 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Aquatics Specialist*5 6 9461 908 19.50$ 19.99$ 20.49$ 21.00$ 21.53$ 22.07$ 22.62$ 23.19$ 23.77$ Assistant City Attorney 2 1 9473 997 78.13$ --------Childcare Aide Emergency Sub Afternoon*5 6 91615 970 19.38$ 19.86$ 20.36$ 20.88$ 21.40$ 21.94$ 22.49$ 23.05$ 23.63$ Childcare Aide Emergency Sub Morning*5 6 91619 971 23.25$ 23.84$ 24.44$ 25.05$ 25.68$ 26.33$ 26.99$ 27.66$ 28.35$ Childcare Aide*5 6 9161 900 15.50$ 15.89$ 16.29$ 16.70$ 17.12$ 17.55$ 17.99$ 18.44$ 18.90$ Childcare Teacher Emergency Sub Afternoon*5 6 92625 972 21.88$ 22.43$ 22.99$ 23.56$ 24.15$ 24.75$ 25.38$ 26.01$ 26.66$ Childcare Teacher Emergency Sub Morning*5 6 92629 973 26.25$ 26.91$ 27.59$ 28.28$ 28.98$ 29.70$ 30.45$ 31.22$ 32.00$ Childcare Teacher*5 6 9262 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Commissioner 6 109861 990 75.00$ --------Engineering Consultant 3 2 9332 980 50.00$ 51.56$ 55.00$ 65.00$ 75.00$ ----Facilities Aide Farmer's Market 8 2 9292 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Facilities Aide Pool 8 6 9293 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Facilities Assistant 5 6 9264 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Facilities Specialist5 6 9463 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Facility Host5 6 9162 900 15.50$ 15.89$ 16.29$ 16.70$ 17.12$ 17.55$ 17.99$ 18.44$ 18.90$ Fire Intern 3 5 9151 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Flood Control Technician 8 2 9287 910 20.50$ 21.01$ 21.54$ 22.08$ 22.63$ 23.20$ 23.78$ 24.37$ 24.98$ GIS Technician 3 2 9231 910 20.50$ 21.01$ 21.54$ 22.08$ 22.63$ 23.20$ 23.78$ 24.37$ 24.98$ Hazardous Materials Team Business Manager 3 5 9651 996 28.00$ 29.00$ 30.00$ ------Head Childcare Teacher Emergency Sub Afternoon*5 6 93605 974 24.38$ 24.99$ 25.61$ 26.25$ 26.91$ 27.59$ 28.28$ 28.99$ 29.71$ Head Childcare Teacher Emergency Sub Morning*5 6 93609 975 29.25$ 29.99$ 30.74$ 31.50$ 32.30$ 33.11$ 33.93$ 34.79$ 35.66$ Head Childcare Teacher*5 6 9360 908 19.50$ 19.99$ 20.49$ 21.00$ 21.53$ 22.07$ 22.62$ 23.19$ 23.77$ Head Lifeguard*5 6 9351 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Human Resources Specialist 5 1 932401 261 29.94$ 31.51$ 33.18$ 34.93$ 36.76$ -$ -$ -$ -$ Intern I 5 1 9111 900 15.50$ 15.89$ 16.29$ 16.70$ 17.12$ 17.55$ 17.99$ 18.44$ 18.90$ Intern II 5 1 9211 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Intern III 5 1 9311 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Intern IV 6 1 9411 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ IT Assistant Help Desk 5 1 9232 910 20.50$ 21.01$ 21.54$ 22.08$ 22.63$ 23.20$ 23.78$ 24.37$ 24.98$ Landscape Inspector 3 2 9282 914 22.50$ 23.06$ 23.64$ 24.23$ 24.84$ 25.46$ 26.10$ 26.75$ 27.42$ Lead Parking Attendant 8 2 9471 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Lifeguard Dock Pay*5 6 92519 900 15.50$ --------Lifeguard*5 6 9251 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Open Space Technician 8 6 9289 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Parking Ambassador 8 2 9271 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Parking Enforcement Officer 3 2 9266 420 22.58$ 23.76$ 25.01$ 26.33$ 27.71$ ----Parks Maintenance Aide I 8 2 9182 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Parks Maintenance Aide II 8 2 9281 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ KeyBlue = P&R Positions * = Classifications that work with children (AB 218 doesn't apply) Page 115 of 364
Ranger Services Worker8 6 9181 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Rec Cashier*5 6 9171 900 15.50$ 15.89$ 16.29$ 16.70$ 17.12$ 17.55$ 17.99$ 18.44$ 18.90$ Recording Secretary6 10 9272 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Skate Park Ambassador8 6 9290 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ SNAP 3 4 9352 910 20.50$ 21.01$ 21.54$ 22.08$ 22.63$ 23.20$ 23.78$ 24.37$ 24.98$ Special Swim Instructor*5 6 9369 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Swim Instructor*5 6 9263 904 17.50$ 17.94$ 18.39$ 18.85$ 19.32$ 19.80$ 20.30$ 20.81$ 21.33$ Transit Coordinator6 2 944406 426 26.38$ 27.76$ 29.23$ 30.76$ 32.39$ -$ -$ -$ -$ Tree Care Specialist I8 2 9192 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Tree Care Specialist II8 2 9294 906 18.50$ 18.96$ 19.43$ 19.92$ 20.42$ 20.93$ 21.45$ 21.99$ 22.54$ Water Quality Lab Aide3 13 9141 902 16.50$ 16.91$ 17.33$ 17.76$ 18.20$ 18.66$ 19.13$ 19.61$ 20.10$ Youth Sports Official*5 6 9261 900 15.50$ 15.89$ 16.29$ 16.70$ 17.12$ 17.55$ 17.99$ 18.44$ 18.90$ ** CalPERS Retired Annuitants will be paid in accordance with the Regular and Contract Salary Schedule per CalPERS Rules and RegulationsEffective 12/22/2022Page 116 of 364
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SB-3 Minimum wage: in-home supportive services: paid sick days.(2015-2016)
Senate Bill No. 3
CHAPTER 4
An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor.
[ Approved by Governor April 04, 2016. Filed with Secretary of State April 04, 2016. ]
LEGISLATIVE COUNSELʹS DIGEST
SB 3, Leno. Minimum wage: in-home supportive services: paid sick days.
(1) Under existing law, the Healthy Workplaces, Healthy Families Act of 2014, an employee who, on or after July
1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of
employment is entitled to paid sick days, as specified. Existing law requires an employee to accrue paid sick days
at the rate of not less than one hour per every 30 hours worked subject to specified use and accrual limitations.
For the purposes of the act, an “employee” does not include a provider of in-home supportive services, as
described.
This bill, on and after July 1, 2018, would entitle a provider of in-home supportive services who works in
California for 30 or more days within a year from the commencement of employment to paid sick days, subject to
specified full amount of leave time amounts and that rate of accrual. The bill would require the State Department
of Social Services, in consultation with stakeholders, to convene a workgroup to implement paid sick leave for in-
home supportive services providers and to issue guidance in that regard by December 1, 2017. The bill would
authorize the department to implement that paid sick leave without complying with the Administrative Procedure
Act.
(2) On and after July 1, 2014, existing law requires the minimum wage for all industries to be not less than $9
per hour. On and after January 1, 2016, existing law requires the minimum wage for all industries to be not less
than $10 per hour.
This bill would require the minimum wage for all industries to not be less than specified amounts to be increased
from January 1, 2017, to January 1, 2022, inclusive, for employers employing 26 or more employees and from
January 1, 2018, to January 1, 2023, inclusive, for employers employing 25 or fewer employees, except when the
scheduled increases are temporarily suspended by the Governor, based on certain determinations. The bill would
also require the Director of Finance, after the last scheduled minimum wage increase, to annually adjust the
minimum wage under a specified formula.
On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified
amount for employers employing 26 or more employees, the bill would require the Director of Finance to annually
determine, based on certain factors, whether economic conditions can support a scheduled minimum wage
increase and certify that determination to the Governor and the Legislature. The bill would also require the State
Board of Equalization to publish specified retail sales and use tax information on its Internet Web site to be used
by the Director of Finance in making that determination.
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On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified
amount for employers employing 26 or more employees, in order to ensure that the General Fund can support the
next scheduled minimum wage increase, the bill would also require the Director of Finance to annually determine
and certify to the Governor and the Legislature whether the General Fund would be in a deficit in the current fiscal
year, or in either of the following 2 fiscal years.
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 245.5 of the Labor Code is amended to read:
245.5. As used in this article:
(a) “Employee” does not include the following:
(1) An employee covered by a valid collective bargaining agreement if the agreement expressly provides for the
wages, hours of work, and working conditions of employees, and expressly provides for paid sick days or a paid
leave or paid time off policy that permits the use of sick days for those employees, final and binding arbitration
of disputes concerning the application of its paid sick days provisions, premium wage rates for all overtime
hours worked, and regular hourly rate of pay of not less than 30 percent more than the state minimum wage
rate.
(2) An employee in the construction industry covered by a valid collective bargaining agreement if the
agreement expressly provides for the wages, hours of work, and working conditions of employees, premium
wage rates for all overtime hours worked, and regular hourly pay of not less than 30 percent more than the
state minimum wage rate, and the agreement either (A) was entered into before January 1, 2015, or (B)
expressly waives the requirements of this article in clear and unambiguous terms. For purposes of this
subparagraph, “employee in the construction industry” means an employee performing work associated with
construction, including work involving alteration, demolition, building, excavation, renovation, remodeling,
maintenance, improvement, repair work, and any other work as described by Chapter 9 (commencing with
Section 7000) of Division 3 of the Business and Professions Code, and other similar or related occupations or
trades.
(3) An individual employed by an air carrier as a flight deck or cabin crew member that is subject to the
provisions of Title II of the federal Railway Labor Act (45 U.S.C. Sec. 151 et seq.), provided that the individual
is provided with compensated time off equal to or exceeding the amount established in paragraph (1) of
subdivision (b) of Section 246.
(4) An employee of the state, city, county, city and county, district, or any other public entity who is a recipient
of a retirement allowance and employed without reinstatement into his or her respective retirement system
pursuant to either Article 8 (commencing with Section 21220) of Chapter 12 of Part 3 of Division 5 of Title 2 of
the Government Code, or Article 8 (commencing with Section 31680) of Chapter 3 of Part 3 of Division 4 of Title
3 of the Government Code.
(b) “Employer” means any person employing another under any appointment or contract of hire and includes the
state, political subdivisions of the state, and municipalities.
(c) “Family member” means any of the following:
(1) A child, which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward,
or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age
or dependency status.
(2) A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s
spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor
child.
(3) A spouse.
(4) A registered domestic partner.
(5) A grandparent.
(6) A grandchild.
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(7) A sibling.
(d) “Health care provider” has the same meaning as defined in paragraph (6) of subdivision (c) of Section
12945.2 of the Government Code.
(e) “Paid sick days” means time that is compensated at the same wage as the employee normally earns during
regular work hours and is provided by an employer to an employee for the purposes described in Section 246.5.
SEC. 2. Section 246 of the Labor Code is amended to read:
246. (a) (1) An employee who, on or after July 1, 2015, works in California for the same employer for 30 or more
days within a year from the commencement of employment is entitled to paid sick days as specified in this
section.
(2) On and after July 1, 2018, a provider of in-home supportive services under Section 14132.95, 14132.952,
or 14132.956 of, or Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the
Welfare and Institutions Code, who works in California for 30 or more days within a year from the
commencement of employment is entitled to paid sick days as specified in subdivision (e) and subject to the
rate of accrual in paragraph (1) of subdivision (b).
(b) (1) An employee shall accrue paid sick days at the rate of not less than one hour per every 30 hours worked,
beginning at the commencement of employment or the operative date of this article, whichever is later, subject to
the use and accrual limitations set forth in this section.
(2) An employee who is exempt from overtime requirements as an administrative, executive, or professional
employee under a wage order of the Industrial Welfare Commission is deemed to work 40 hours per workweek
for the purposes of this section, unless the employee’s normal workweek is less than 40 hours, in which case
the employee shall accrue paid sick days based upon that normal workweek.
(3) An employer may use a different accrual method, other than providing one hour per every 30 hours worked,
provided that the accrual is on a regular basis so that an employee has no less than 24 hours of accrued sick
leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month
period.
(4) An employer may satisfy the accrual requirements of this section by providing not less than 24 hours or
three days of paid sick leave that is available to the employee to use by the completion of his or her 120th
calendar day of employment.
(c) An employee shall be entitled to use accrued paid sick days beginning on the 90th day of employment, after
which day the employee may use paid sick days as they are accrued.
(d) Accrued paid sick days shall carry over to the following year of employment. However, an employer may limit
an employee’s use of accrued paid sick days to 24 hours or three days in each year of employment, calendar year,
or 12-month period. This section shall be satisfied and no accrual or carryover is required if the full amount of
leave is received at the beginning of each year of employment, calendar year, or 12-month period. The term “full
amount of leave” means three days or 24 hours.
(e) For a provider of in-home supportive services under Section 14132.95, 14132.952, or 14132.956 of, or Article
7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the Welfare and Institutions Code, the
term “full amount of leave” is defined as follows:
(1) Eight hours or one day in each year of employment, calendar year, or 12-month period beginning July 1,
2018.
(2) Sixteen hours or two days in each year of employment, calendar year, or 12-month period beginning when
the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for any
years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has reached
thirteen dollars ($13) per hour.
(3) Twenty-four hours or three days in each year of employment, calendar year, or 12-month period beginning
when the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for
any years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has
reached fifteen dollars ($15) per hour.
(f) An employer is not required to provide additional paid sick days pursuant to this section if the employer has a
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paid leave policy or paid time off policy, the employer makes available an amount of leave applicable to
employees that may be used for the same purposes and under the same conditions as specified in this section,
and the policy satisfies one of the following:
(1) Satisfies the accrual, carryover, and use requirements of this section.
(2) Provided paid sick leave or paid time off to a class of employees before January 1, 2015, pursuant to a sick
leave policy or paid time off policy that used an accrual method different than providing one hour per 30 hours
worked, provided that the accrual is on a regular basis so that an employee, including an employee hired into
that class after January 1, 2015, has no less than one day or eight hours of accrued sick leave or paid time off
within three months of employment of each calendar year, or each 12-month period, and the employee was
eligible to earn at least three days or 24 hours of sick leave or paid time off within nine months of employment.
If an employer modifies the accrual method used in the policy it had in place prior to January 1, 2015, the
employer shall comply with any accrual method set forth in subdivision (b) or provide the full amount of leave
at the beginning of each year of employment, calendar year, or 12-month period. This section does not prohibit
the employer from increasing the accrual amount or rate for a class of employees covered by this subdivision.
(3) Notwithstanding any other law, sick leave benefits provided pursuant to the provisions of Sections 19859 to
19868.3, inclusive, of the Government Code, or annual leave benefits provided pursuant to the provisions of
Sections 19858.3 to 19858.7, inclusive, of the Government Code, or by provisions of a memorandum of
understanding reached pursuant to Section 3517.5 that incorporate or supersede provisions of Section 19859 to
19868.3, inclusive, or Sections 19858.3 to 19858.7, inclusive of the Government Code, meet the requirements
of this section.
(g) (1) Except as specified in paragraph (2), an employer is not required to provide compensation to an employee
for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from
employment.
(2) If an employee separates from an employer and is rehired by the employer within one year from the date of
separation, previously accrued and unused paid sick days shall be reinstated. The employee shall be entitled to
use those previously accrued and unused paid sick days and to accrue additional paid sick days upon rehiring,
subject to the use and accrual limitations set forth in this section. An employer is not required to reinstate
accrued paid time off to an employee that was paid out at the time of termination, resignation, or separation of
employment.
(h) An employer may lend paid sick days to an employee in advance of accrual, at the employer’s discretion and
with proper documentation.
(i) An employer shall provide an employee with written notice that sets forth the amount of paid sick leave
available, or paid time off leave an employer provides in lieu of sick leave, for use on either the employee’s
itemized wage statement described in Section 226 or in a separate writing provided on the designated pay date
with the employee’s payment of wages. If an employer provides unlimited paid sick leave or unlimited paid time
off to an employee, the employer may satisfy this section by indicating on the notice or the employee’s itemized
wage statement “unlimited.” The penalties described in this article for a violation of this subdivision shall be in lieu
of the penalties for a violation of Section 226. This subdivision shall apply to employers covered by Wage Order
11 or 12 of the Industrial Welfare Commission only on and after January 21, 2016.
(j) An employer has no obligation under this section to allow an employee’s total accrual of paid sick leave to
exceed 48 hours or 6 days, provided that an employee’s rights to accrue and use paid sick leave are not limited
other than as allowed under this section.
(k) An employee may determine how much paid sick leave he or she needs to use, provided that an employer
may set a reasonable minimum increment, not to exceed two hours, for the use of paid sick leave.
(l) For the purposes of this section, an employer shall calculate paid sick leave using any of the following
calculations:
(1) Paid sick time for nonexempt employees shall be calculated in the same manner as the regular rate of pay
for the workweek in which the employee uses paid sick time, whether or not the employee actually works
overtime in that workweek.
(2) Paid sick time for nonexempt employees shall be calculated by dividing the employee’s total wages, not
including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90
days of employment.
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(3) Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates
wages for other forms of paid leave time.
(m) If the need for paid sick leave is foreseeable, the employee shall provide reasonable advance notification. If
the need for paid sick leave is unforeseeable, the employee shall provide notice of the need for the leave as soon
as practicable.
(n) An employer shall provide payment for sick leave taken by an employee no later than the payday for the next
regular payroll period after the sick leave was taken.
(o) The State Department of Social Services, in consultation with stakeholders, shall convene a workgroup to
implement paid sick leave for in-home supportive services providers as specified in this section. This workgroup
shall finish its implementation work by November 1, 2017, and the State Department of Social Services shall
issue guidance such as an all-county letter or similar instructions by December 1, 2017.
(p) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social
Services may implement, interpret, or make specific this section by means of an all-county letter, or similar
instructions, without taking any regulatory action.
SEC. 3. Section 1182.12 of the Labor Code is amended to read:
1182.12. (a) Notwithstanding any other provision of this part, on and after July 1, 2014, the minimum wage for all
industries shall be not less than nine dollars ($9) per hour, and on and after January 1, 2016, the minimum wage
for all industries shall be not less than ten dollars ($10) per hour.
(b) Notwithstanding subdivision (a), the minimum wage for all industries shall not be less than the amounts set
forth in this subdivision, except when the scheduled increases in paragraphs (1) and (2) are temporarily
suspended under subdivision (d).
(1) For any employer who employs 26 or more employees, the minimum wage shall be as follows:
(A) From January 1, 2017, to December 31, 2017, inclusive,—ten dollars and fifty cents ($10.50) per hour.
(B) From January 1, 2018, to December 31, 2018, inclusive,—eleven dollars ($11) per hour.
(C) From January 1, 2019, to December 31, 2019, inclusive,—twelve dollars ($12) per hour.
(D) From January 1, 2020, to December 31, 2020, inclusive,—thirteen dollars ($13) per hour.
(E) From January 1, 2021, to December 31, 2021, inclusive,—fourteen dollars ($14) per hour.
(F) From January 1, 2022, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour.
(2) For any employer who employs 25 or fewer employees, the minimum wage shall be as follows:
(A) From January 1, 2018, to December 31, 2018, inclusive,—ten dollars and fifty cents ($10.50) per hour.
(B) From January 1, 2019, to December 31, 2019, inclusive,—eleven dollars ($11) per hour.
(C) From January 1, 2020, to December 31, 2020, inclusive,—twelve dollars ($12) per hour.
(D) From January 1, 2021, to December 31, 2021, inclusive,—thirteen dollars ($13) per hour.
(E) From January 1, 2022, to December 31, 2022, inclusive,—fourteen dollars ($14) per hour.
(F) From January 1, 2023, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour.
(3) For purposes of this subdivision, “employer” means any person who directly or indirectly, or through an
agent or any other person, employs or exercises control over the wages, hours, or working conditions of any
person. For purposes of this subdivision, “employer” includes the state, political subdivisions of the state, and
municipalities.
(4) Employees who are treated as employed by a single qualified taxpayer under subdivision (h) of Section
23626 of the Revenue and Taxation Code, as it read on the effective date of this section, shall be considered
employees of that taxpayer for purposes of this subdivision.
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(c) (1) Following the implementation of the minimum wage increase specified in subparagraph (F) of paragraph
(2) of subdivision (b), on or before August 1 of that year, and on or before each August 1 thereafter, the Director
of Finance shall calculate an adjusted minimum wage. The calculation shall increase the minimum wage by the
lesser of 3.5 percent and the rate of change in the averages of the most recent July 1 to June 30, inclusive, period
over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics
nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S.
CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted minimum wage increase
calculated under this subdivision shall take effect on the following January 1.
(2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the
preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally
adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the minimum wage pursuant to this
subdivision on the following January 1.
(3) (A) Notwithstanding the implementation timing described in paragraph (1) of this subdivision, if the rate of
change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June
30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W
exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of
subdivision (b) is implemented, the indexing provisions described in paragraph (1) of this subdivision shall be
implemented immediately, such that the indexing will be effective on the following January 1.
(B) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the
preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally
adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph
(F) of paragraph (1) of subdivision (b) is implemented, notwithstanding any other law, for employers with 25
or fewer employees the minimum wage shall be set equal to the minimum wage for employers with 26 or
more employees, effective on the following January 1, and the minimum wage increase specified in
subparagraph (F) of paragraph (2) of subdivision (b) shall be considered to have been implemented for
purposes of this subdivision.
(d) (1) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen
dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that economic conditions can
support a minimum wage increase, the Director of Finance shall annually make a determination and certify to the
Governor and the Legislature whether each of the following conditions is met:
(A) Total nonfarm employment for California, seasonally adjusted, decreased over the three-month period
from April to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally
adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in March, as
reported by the Employment Development Department.
(B) Total nonfarm employment for California, seasonally adjusted, decreased over the six-month period from
January to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally
adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in December,
as reported by the Employment Development Department.
(C) Retail sales and use tax cash receipts from a 3.9375-percent tax rate for the July 1 to June 30, inclusive,
period ending one month prior to the July 28 determination is less than retail sales and use tax cash receipts
from a 3.9375-percent tax rate for the July 1 to June 30, inclusive, period ending 13 months prior to the July
28 determination. The calculation for the condition specified in this subparagraph shall be made as follows:
(i) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the
total retail sales (sales before adjustments) for the prior month derived from their daily retail sales and
use tax reports.
(ii) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the
monthly factor required to convert the prior month’s retail sales and use tax total from all tax rates to a
retail sales and use tax total from a 3.9375-percent tax rate.
(iii) The Department of Finance shall multiply the monthly total from clause (i) by the monthly factor from
clause (ii) for each month.
(iv) The Department of Finance shall sum the monthly totals calculated in clause (iii) to calculate the 12-
month July 1 to June 30, inclusive, totals needed for the comparison in this subparagraph.
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(2) (A) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen
dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that the state General Fund fiscal
condition can support the next scheduled minimum wage increase, the Director of Finance shall annually make
a determination and certify to the Governor and the Legislature whether the state General Fund would be in a
deficit in the current fiscal year, or in either of the following two fiscal years.
(B) For purposes of this subdivision, deficit is defined as a negative balance in the Special Fund for Economic
Uncertainties, as provided for in Section 16418 of the Government Code, that exceeds, in absolute value, 1
percent of total state General Fund revenue and transfers, based on the most recent Department of Finance
estimates required by Section 12.5 of Article IV of the California Constitution. For purposes of this
subdivision, the estimates shall include the assumption that only the minimum wage increases scheduled for
the following calendar year pursuant to subdivision (b) will be implemented.
(3) (A) (i) If, for any year, the condition in either subparagraph (A) or (B) of paragraph (1) is met, and if the
condition in subparagraph (C) of paragraph (1) is met, the Governor may, on or before August 1 of that year,
notify the Legislature of an initial determination to temporarily suspend the minimum wage increases scheduled
pursuant to subdivision (b) for the following year.
(ii) If the Director of Finance certifies under paragraph (2) that the state General Fund would be in a
deficit in the current fiscal year, or in either of the following two fiscal years, the Governor may, on or
before August 1 of that fiscal year, notify the Legislature of an initial determination to temporarily suspend
the minimum wage increases scheduled pursuant to subdivision (b) for the following year.
(B) If the Governor provides notice to the Legislature pursuant to subparagraph (A), the Governor shall, on
September 1 of any such year, make a final determination whether to temporarily suspend the minimum
wage increases scheduled pursuant to subdivision (b) for the following year. The determination to
temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following
year shall be made by proclamation.
(C) The Governor may temporarily suspend scheduled minimum wage increases pursuant to clause (ii) of
subparagraph (A) no more than two times.
(D) If the Governor makes a final determination to temporarily suspend the scheduled minimum wage
increases pursuant to subdivision (b) for the following year, all dates specified in subdivision (b) that are
subsequent to the September 1 final determination date shall be postponed by an additional year.
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