REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance to Amend Section 3.80.040 of Sunnyvale's Minimum Wage Ordinance to Limit Future Consumer Price Index (CPI) increased to a Maximum of Five (5) Percent and Update the name of CPI index from the San Francisco-Oakland-San Jose to the San Francisco-Oakland-Hayward index
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 will be adjusted to $15.65 based on the Bay Area CPI increase on January 1, 2019.
On September 11, 2018, Council directed staff to return with an amendment to the Ordinance to impose a maximum cap of five (5) percent on future CPI increases. Attachment 1 is a draft ordinance that includes a cap of five (5) percent on future CPI increases.
EXISTING POLICY
Section 3.80.040 of the Sunnyvale Municipal Code, entitled "Minimum Wage".
Council Policy 7.3.1 Legislative Management-Goals and Policies:
Policy ...
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