HomeMy WebLinkAboutItem 1c - Wage Adjustments in accordance with Senate Bill 3
DATE: December 19, 2017
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Stephanie Luu, Human Resources Analyst
SUBJECT: RESOLUTION NO. 7194 APPROVING WAGE ADJUSTMENTS FOR
UNREPRESENTED NON-BENEFITED PART-TIME EMPLOYEES IN ACCORDANCE WITH CALIFORNIA'S MINIMUM WAGE INCREASE
EFFECTIVE JANUARY 1, 2018
Recommendation: Adopt
SUMMARY
On April 4, 2016, Governor Jerry Brown signed Senate Bill (SB) 3, incrementally
increasing California’s minimum wage each year to reach $15 per hour in 2022. To
comply with SB 3, it is recommended that the City Council adopt Resolution No. 7194
establishing wage adjustments for unrepresented, non-benefited, part-time employees effective January 1, 2018.
BACKGROUND
SB 3 signed by Governor Jerry Brown on April 4, 2016, increases California’s minimum wage over a period of six years to reach $15 per hour in 2022. The minimum wage
schedule has been set as follows:
Effective Date Minimum Wage
January 1, 2017 $10.50 per hour
January 1, 2018 $11.00 per hour
January 1, 2019 $12.00 per hour
January 1, 2020 $13.00 per hour
January 1, 2021 $14.00 per hour
January 1, 2022 $15.00 per hour
In past years, the City Council has adopted resolutions to establish wage adjustments
for part-time (unrepresented non-benefited) employees in compliance with the state’s
established minimum wage. More recent, on December 6, 2016, the City Council
adopted Resolution No. 7155 establishing wage adjustments for unrepresented, non-
Resolution No. 7194 establishing minimum wage in accordance with SB 3
December 19, 2017
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benefited, part-time employees, increasing the minimum wage to $10.50 per hour on
January 1, 2017.
It should be noted that, as a Charter City, Arcadia may choose to ignore the minimum wage limits set by SB 3; however, the City has opted to follow the limits established by SB 3 in order to remain consistent with other employers throughout the region – both
public and private – including other Charter cities.
DISCUSSION To further comply with SB 3, setting California’s minimum wage to $11.00 per hour
effective January 1, 2018, it is recommended that the City Council adopt Resolution No.
7194, establishing part-time wage schedules that meets the State’s minimum wage
requirement. The part-time wage schedules are adjusted to apply the minimum wage increase to
entry-level positions that would have been below the expected minimum wage.
Additionally, to ensure the adjustments did not affect the wage differentials between the
higher-level classifications within their particular field, further adjustments in the range of 2.5% to 5.0% are recommended.
To continue in conformity with SB 3, it is recommended that adjustments be made to
two entry-level positions that would fall below the minimum wage of $11.00 per hour.
These positions and proposed hourly rates are as follows:
Entry Level Position Range No. Current
Hourly Rate Range No. Proposed
Hourly Rate
Activity Leader I PT 6 $10.50 PT 8 $11.03
Library Aide I PT 6 $10.50 PT 8 $11.03
Based on staff’s review and consultation with Library Services Department, the positions of Library Aide I and Library Aide II will be set on the same pay range. After a
review of their duties, it was determined that the position can be consolidated and
reclassified to one position as Library Aide, with the expectation that employees
currently holding either job title will now perform all duties as designated in the Library
Aide classification specification. To ensure the adjustment does not affect the wage differentials post consolidation, further adjustments in the range of 2.5% to 5.0% are
recommended for those who held the higher title prior to the change.
The unrepresented, unbenefited, part-time wage schedules proposed are attached as
Exhibit “A” and Exhibit “B”. Exhibit “A” illustrates part-time positions with Non-CalPERS Retirement and Exhibit “B”, for part-time positions that have been enrolled in CalPERS
due to mandatory guidelines based on hours worked or having been vested in CalPERS
Resolution No. 7194 establishing minimum wage in accordance with SB 3
December 19, 2017
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from prior employment. Exhibit “A” reflects the same wage adjustments made to Exhibit
“B”; however, Exhibit “B” includes a 7% increase that is currently in place to offset the
employee pension contributions as a result of past labor negotiations and as adopted in
Resolution No. 6795. Since SB 3 will continue to increase the minimum wage for the next four years, staff will
be analyzing its impact on the unrepresented, unbenefited, part-time wage schedules in
2018 to ensure its competitiveness in the labor market and assess the City’s overall
ability to attract, recruit, and retain entry-level personnel. If further adjustments are recommended, staff will be proposing these recommendations prior to the next minimum wage increase of $12.00 per hour effective January 1, 2019.
ENVIRONMENTAL IMPACT
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The recommended adjustments are projected to increase the City’s Operating Budget by approximately $6,500 for the remainder of Fiscal Year 2017-18. The anticipated
increase is a conservative projection as it is based on actual hours worked during the
peak summer season of the affected part-time employees. At this time, no additional
budget appropriation is requested as the projected increase can be absorbed in the Fiscal Year 2017-18 General Fund Operating Budget.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7194, approving wage adjustments for unrepresented, non-benefited, part-time employees in accordance with California’s minimum wage increase effective January 1, 2018.
Attachment: Resolution No. 7194