1. Local Minimum wage ordinance
Community Meeting – August 22, 2019

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

3. 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

4. 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

5. 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

6. 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%

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

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

9. 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

10. Resources
For additional information on the proposed ordinance please visit menlopark.org/minimumwage
Contact Nick Pegueros to give additional feedback or request information
Phone:

11. THANK YOU

12. 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

13. 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

14. 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