REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance to Amend Section 3.80.040 of Sunnyvale's Minimum Wage Ordinance to Delay Future Consumer Price Index (CPI) Adjustments from January 1, 2019 to January 1, 2020, and Limit Future CPI Increases to a Maximum of Five (5) Percent
Report
BACKGROUND
On October 28, 2014, Council adopted Sunnyvale Municipal Code Chapter 3.80 as a local Minimum Wage Ordinance (Ordinance) to increase the hourly minimum wage to $10.30. On April 21, 2016, Council amended the Ordinance by changing the Consumer Price Index (CPI) from the U.S. city average to the Bay Area average and increased the Sunnyvale's minimum wage to $15 per the following schedule:
* $11 per hour on July 1, 2015
* $13 per hour on January 1, 2017
* $15 per hour on January 1, 2018
In 2017, the Santa Clara County Cities Association (Association) voted to keep the "regional minimum wage" issue as a priority. As part of that effort, Cupertino, San Jose, Palo Alto, Milpitas, Los Altos, and Santa Clara joined the regional effort and adopted ordinances to incrementally raise their minimum wage to $15 per hour by 2019 with annual CPI adjustments to start on January or July 2020.
At a February 27, 2018, Council Study Session, staff provided an update regarding the City and the region's efforts regarding the increase to a $15 per hour minimum wage. Consistent with the City's ordinance, Sunnyvale's current minimum wage is $15 per hour and may be adjusted based on the Bay Area CPI on January 1, 2019. Mayor Hendricks requested that staff bring this item back for formal Council action regarding whether, for regional consistency, to delay the start of the CPI adjustment from January 1, 2019 to January 1, 2020.
Staff presented this item to Council on July 31, 2018 and Council directed staff to return with a Minimum Wage Ordinance amendment to delay future CPI adjustments from January 1, 2019 to January 1, 2020 and to amend the ordinance for a maximum cap of five (5) percent on...
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