Local Minimum wage ordinance Community Meeting – August 22, 2019

Staff introductions Nick Pegueros – Assistant City Manager Cara Silver – Assistant City Attorney Peter Ibrahim – Management Analyst (CMO) John Passmann – Management Analyst (HED)

goals Receive feedback on proposed local minimum wage ordinance (LMWO) from local employers and other community stakeholders Feedback will be incorporated into staff report and inform the Council of potential effects of ordinance on employers

City Council adopted exploring LMWO as a 2018 work plan item Overview City Council adopted exploring LMWO as a 2018 work plan item June 18, 2019 – Public engagement plan approved September 10, 2019 – Ordinance tentatively scheduled to go to Council

Minimum wage will help low-wage employees make ends meet Purpose of LMWO Cost of living in the Bay Area and Menlo Park has become increasingly expensive Minimum wage will help low-wage employees make ends meet Provide local employees with economic security

Current state law Tiered system based on number of employees $11.00/hr for <25 employees and $12.00/hr for >25 employees Gradually increasing to $15.00/hr by 2022 followed by CPI increases capped at 3.5%

Table 1: California minimum wage (2016 SB3) Effective date Employers with 25 or fewer employees Employers with 26 or more employees January 1, 2019 $ 11.00 $ 12.00 January 1, 2020 $ 12.00 $ 13.00 January 1, 2021 $ 13.00 $ 14.00 January 1, 2022 $ 14.00 $ 15.00 January 1, 2023 $ 15.00 $ 15.00 + CPI January 1, 2024 $ 15.00+ CPI AMW + CPI CPI = consumer price index, capped at 3.5% per year AMW = adjusted minimum wage, provided to reflect that CPI compounds  

Proposed Local Ordinance $15.00/hr on January 1, 2020 (Section 5.76.030b) CPI adjustments starting in 2021 based on CPI and capped at 3% (Section 5.76.030b) Council may temporarily suspend CPI adjustments by majority vote (Section 5.76.030c) Applies to all employers in Menlo Park except federal, state, county and school district employers (Section 5.76.040) Contract for enforcement services

How will this ordinance affect you? Potential exemptions/carve-outs Request for feedback How will this ordinance affect you? Potential exemptions/carve-outs Allow for a training/learner’s wage Allow a tips wage Increase the minimum hours for the LMWO to take effect Open to other feedback on the ordinance

Resources For additional information on the proposed ordinance please visit menlopark.org/minimumwage Contact Nick Pegueros to give additional feedback or request information Email: nmpegueros@menlopark.org Phone: 650-330-6619

THANK YOU

Would your organization be in favor of a training/learner’s wage? Discussion Questions Would your organization be in favor of a training/learner’s wage? Workers could be paid an X% percentage of the minimum wage for X hours The training wage could be set at the state minimum wage

Would your organization be in favor of a tips wage offset? Discussion Questions Would your organization be in favor of a tips wage offset? Tip wages would offset the LMWO State minimum wage cannot be offset by tips

Discussion Questions Would your organization be in favor of increasing the minimum number of hours worked before the LMWO takes effect? Currently proposed ordinance calls for 2 hours