1. Making Headway Against Transit’s Driver Shortage
MV Transportation, Inc.

2. State Minimum Wage History
In 2016, new legislation was introduced to amend SEC. 3. Section of the Labor Code to phase in new state-wide minimum wage rates. Over the five year span starting in 2017, required minimum wage will increase by 48%.
Minimum wage level for employers with more than 25 employees
During this 5-year period employers with 25 employees or less can offer a lower minimum wage
Souce:

3. 2018 Local Minimum Wages
Beyond State-Mandated minimums, a growing number of counties and cities have established local ordinances relating to minimum wage, exceeding State requirements. Of the 38 cities & counties with Local Minimum Wage Ordinances in place today, 22 are in California.
Source:

4. Contracted Services And Minimum Wage
Pricing required for RFP responses consider:
Base year + extension years; typically
3 year base + option years; or
5 year base + option years
May require base year pricing only, with state CPI assumptions for option years

5. California Minimum Wage: Increases Over Prior Year
Example: A project bid in 2012 with a 4-year base and 2, 24 month options, there was no way to predict a 25% increase to mandated minimum wage over the first four years (75% increase over entire term).

6. Competition Matters 5 Years Ago Today
While minimum wage is a concern, competition for jobs has strained the public transit industry.
5 Years Ago
Transit
Freight
Taxi
Today
TNCs
Distribution Centers
Directly impacts transit costs relating to:
Recruiting
Wages/Benefits
Hiring incentives
Turnover

7. California Unemployment History
The Q Unemployment rate is at 4.4% - the lowest level in a decade.
Highest point
3/1/2010
12.3%
Lowest point
1/1/2018
4.4%

8. CDL Drivers: Supply and Demand
In Irvine, the supply to demand ratio for CDL drivers is 1: % of employers are paying more than 15% more than minimum wage; 25% of employers are paying 38% more than minimum wage to hire quality drivers.

9. Considerations for RFPs
Contract language to allow for price readjustment based on minimum wage rules
Prevents agencies from having to preemptively go to bid
Ensures fully staffed operations – improving quality of service with tenured operators
Mandate specific wage minimums to provide equitable scoring without sacrificing service