REPORT TO COUNCIL
SUBJECT
Title
Minimum Wage Update (Information Only)
Report
BACKGROUND
On October 28, 2014, Council adopted a Minimum Wage Ordinance for the City of Sunnyvale to increase the hourly minimum wage to $10.30. On April 21, 2016, Council amended the Minimum Wage Ordinance by changing the Consumer Price Index (CPI) from the U.S. city average to the Bay Area CPI average and increased the City's minimum wage to $15 by 2018 according the following schedule:
* $11 per hour by July 1, 2015
* $13 per hour on January 1, 2017
* $15 per hour on January 1, 2018
* Regional CPI Increase January 1, 2019
EXISTING POLICY
Section 3.80.040 of the Sunnyvale Municipal Code: Minimum Wage
DISCUSSION
In response to Council inquiry last winter, staff is providing an update on the City and the Region's efforts regarding the increase of the minimum wage to $15 per hour. Consistent with the City's ordinance, Sunnyvale's current minimum wage is $13 per hour and is scheduled to increase to $15 per hour on January 1, 2018. Thereafter, it may adjust annually based on the Bay Area CPI. Sunnyvale and Mountain View lead the region and will reach $15 per hour minimum wage on January 1, 2018.
The Santa Clara County Cities Association (Association) evaluated this policy during its 2017 Workplan development and recommended that the Association, for regional policy alignment, continue to monitor this item and voted to keep minimum wage a priority for the Association. As part of that effort, Cupertino, San Jose, Palo Alto, Milpitas, and Los Altos have joined the regional effort and have adopted ordinances that will incrementally raise the minimum wage to $15 per hour by 2019. Santa Clara is currently reviewing their minimum wage ordinance and is scheduled to consider in July 2017 an increase to $15 by 2019.
Starting January 1, 2019, Sunnyvale and Mountain View will adjust future minimum wage increases using the Bay Area Regional CPI. The other cities will start inflation adjust...
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