REPORT TO COUNCIL
SUBJECT
Title
Minimum Wage - Update on Regional Efforts to Reach $15 by 2018
Report
BACKGROUND
On October 28, 2014, Council adopted a Minimum Wage Ordinance to establish a minimum wage of $10.30 per hour beginning on January 1, 2015 and starting January 1, 2016, and every January 1 thereafter, adjust the rate by an amount corresponding to the prior year's Consumer Price Index (CPI). Ordinance number 3047-14 states that future increases will be based upon the CPI for the U.S. city average for urban wage earners and clerical workers, consistent with the City of San Jose's ordinance. The City's minimum wage, as well as the minimum wage in San Jose, will remain at $10.30 per hour on January 1, 2016 as the CPI decreased 0.3 percent over the previous year. Over this same period the Bay Area CPI increased by 2.5 percent.
In addition to adopting the City's Minimum Wage Ordinance, Council directed staff to work with neighboring cities, specifically the City of Mountain View, with the goal of reaching a $15 per hour minimum wage by 2018. On April 21, 2015 and on September 15, 2015, staff provided Council with information only reports (RTC 15-0397 and RTC 15-0759) providing an overview of the proposed joint approach to be used to gather community input:
* Work in cooperation with Mountain View and other cities who may adopt the $15 by 2018 goal
* Send joint letters to all mayors and city managers outlining the regional effort and seeking their support
* Encourage a regional approach to the minimum wage issue via the Cities Association of Santa Clara County
* Conduct targeted outreach to solicit input from the business community
* Post an Open City Hall (online survey) question on the issue
* Solicit feedback from the business community and the general public on the regional plan and the following incremental minimum wage increase proposal:
o $12.00 per hour minimum wage by July 1, 2016
o $13.50 per hour minimum wage by July 1, 2...
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