HomeMy WebLinkAboutItem 12a - Establishing Minimum Wage Adjustments
DATE: December 18, 2018
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Shama P. Curian, Human Resources Administrator
SUBJECT: RESOLUTION NO. 7238 APPROVING WAGE ADJUSTMENTS FOR
UNREPRESENTED, NON-BENEFITED PART-TIME EMPLOYEES IN
ACCORDANCE WITH CALIFORNIA’S MINIMUM WAGE INCREASE
EFFECTIVE JANUARY 1, 2019
Recommendation: Adopt
SUMMARY
On April 4, 2016, Governor Jerry Brown signed Senate Bill 3 (“SB 3”), incrementally
increasing California’s minimum wage over a period of six years to reach $15 per hour
by January 1, 2022. In order to continue to comply with SB 3, it is recommended that
City Council adopt Resolution No. 7328 approving wage adjustments for unrepresented,
non-benefited part-time employees to meet the expected minimum wage increase of
$12.00 per hour effective January 1, 2019.
BACKGROUND
SB 3 signed by Governor Jerry Brown on April 4, 2016, increasing California’s minimum
wage in increments of $1.00 per hour annually to reach $15.00 per hour in January 1,
2022. The minimum wage 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
Resolution 7238 Establishing Minimum Wage In Accordance with SB 3
December 18, 2018
Page 2 of 3
In previous years, the City Council has adopted resolutions to establish wage
adjustments for part-time (unrepresented) employees to comply with the S tate’s
established minimum wage. More recently, on December 19, 2017, the City Council
adopted Resolution No. 7194 establishing wage adjustments for unrepresented, part-
time employees, increasing the minimum wage to $11.00 per hour on January 1, 2018.
DISCUSSION
To further comply with SB 3, setting California’s minimum wage to $12.00 per hour
effective January 1, 2019, it is recommended that the City Council adopt Resolution No.
7238 establishing part-time wage schedules in accordance with the State’s minimum
wage requirement.
The part-time wage schedules are adjusted to apply the minimum wage increase to the
entry-level positions that would have been below the expected minimum wage. This
increase results in the necessity of restructuring the salary ranges of Activity Leader II
and Camp Manager to avoid wage compaction with these affected classifications in the
same job family. The skillset, experience, and responsibility levels for the classifications
of Activity Leader II and Camp Manager necessitate this incremental differential in pay
to continue to support departmental operations.
The adjustments to the six entry-level positions that would fall below the minimum wage
of $12.00 per hour effective January 1, 2019, are as follows:
Entry Level Position Current
Range No.
Current
Hourly Rate
Proposed
Range No.
Proposed
Hourly Rate
Activity Leader I PT 8 $11.03 PT 12 $12.18
Library Aide PT 8 $11.03 PT 12 $12.18
Laborer PT 9 $11.31 PT 12 $12.18
Police Cadet PT 9 $11.31 PT 12 $12.18
Administrative
Intern PT 11 $11.88 PT 13 $12.48
Activity Leader II PT 11 $11.88 PT 14 $12.79
The proposed unrepresented, part-time wage schedules are attached as Exhibit “A” and
Exhibit “B” within Resolution No. 7238. Exhibit “A” illustrates part-time positions with
Non-CalPERS Retirement while Exhibit “B” is for part-time positions that have been
enrolled in CalPERS due to mandatory guidelines based on hours worked or having
been vested in CalPERS 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.
Resolution 7238 Establishing Minimum Wage In Accordance with SB 3
December 18, 2018
Page 3 of 3
SB 3 will continue to increase the minimum wage for the next three years, which will
have an ever-increasing impact on compaction with more senior positions throughout
the organization, including full-time benefitted positions. As such, staff will bring to City
Council as a Study Session in 2019 a plan to minimize salary compaction that would
result from the continued minimum wage increases. The analysis would include
unrepresented, part-time positions and full-time personnel. In addition to maintaining the
City’s organizational salary and wage structure, the Study Session will address the
competitiveness in the labor market and assess the City’s overall ability to attract,
recruit, and retain entry level personnel.
While it is recommended that the City Council adopt the new salary schedules to
comply with SB 3, Charter Cities have the option to opt -out of the SB 3 minimum wage
requirements. City staff is unaware of any Charter City that has chosen to maintain
wages below the state’s newly-established minimum wages; doing so would likely put
the City at a competitive disadvantage for minimum wage employees.
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. As such, this matter is exempt under CEQA.
FISCAL IMPACT
The recommended adjustments are projected to increase the City’s Operating Budget
cost by approximately $42,000 for the remainder of Fiscal Year 2018-19. The
anticipated increase is a conservative projection as it is based on actual hours worke d
during the 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 2018-19 General Fund Operating Budget.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7238 approving wage
adjustments for unrepresented, non-benefited part-time employees in accordance with
California’s minimum wage increase effective January 1, 2019.
Attachment: Resolution No. 7238