REPORT TO COUNCIL
SUBJECT
Title
Minimum Wage Regional Update (Information Only)
Report
BACKGROUND
On October 28, 2014, Council adopted a Minimum Wage Ordinance for the City of Sunnyvale. The ordinance includes the following provisions:
* Applies to employers that maintain a place of business in Sunnyvale and/or provide goods/services within city limits
* Sunnyvale's minimum wage is $10.30 per hour as of January 1, 2015
* Beginning January 1, 2016, and every January 1 thereafter, the rate will adjust by an amount corresponding to the prior year's Consumer Price Index (CPI)
In addition to adopting the minimum wage ordinance, Council directed staff to work with neighboring cities, specifically the City of Mountain View, and regional organizations with the goal of reaching a $15.00 per hour minimum wage by 2018.
Staff used numerous tools to notify employers and employees about the City's new minimum wage. Staff used social media, the City's Web page, sent press releases to English, Spanish, and Chinese language media outlets, and included the new minimum wage rate on the business license renewal forms. In the three months that the ordinance has been in effect, two formal complaints have been received. One complaint was deemed unsupported as the investigation found no violation. The other complaint was determined to be a minimum wage violation and staff is in the process of determining the amount of back wages owed.
DISCUSSION
There have been several new minimum wage efforts at the local, regional, and State levels since Council adopted the Minimum Wage Ordinance.
In December 2014, Senator Mark Leno introduced Senate Bill (SB) 3 to raise the State's current minimum wage of $9.00 per hour to $11.00 per hour effective January 1, 2016 and $13.00 on January 1, 2017. Beginning on January 1, 2019, the minimum wage would be adjusted annually by the rate of inflation. SB 3 is currently awaiting a hearing date in the Senate Labor and Indust...
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