HomeMy WebLinkAbout2016-10-17 Ordinance 5388160907 jb 0131546 1 Sept. 7, 2016
Ordinance No. 5388
Ordinance of the Council of the City of Palo Alto Amending Chapter 4.62 to Title 4
(Business Licenses and Regulations) of the Palo Alto Municipal Code to Provide a
Schedule Increasing the Citywide Minimum Wage to $15 per Hour by 2019 for Palo Alto
Employees
RECITALS
1. The Bay area in general and Palo Alto in particular are becoming increasingly expensive
places to live and work.
2. Payment of a minimum wage advances the interests of the City as a whole,
by creating jobs that keep workers and their families out of poverty.
3. A minimum wage will enable a worker to meet basic needs and avoid economic hardship.
4. This ordinance is intended to improve the quality of services provided in the
City to the public by reducing high turnover, absenteeism, and instability in the workplace.
5. Prompt and efficient enforcement of this Chapter will provide workers with economic
security and assurance that their rights will be respected.
6. Key findings of a regional minimum wage study and survey performed by the Institute for
Research on Labor and Employment at UC Berkeley and BW Research showed that increasing the
minimum wage to $15.00 an hour by 2019 in Santa Clara County would:
Increase earnings for 250,000 workers
Raise average annual earnings of affected workers by 19.4 percent, or $3,200.00 (in
2014 dollars)
Slightly increase average prices in Santa Clara County by 0.2 percent over three years
Have a net effect on employment that is slightly negative at the county level (1,450
jobs) and close to zero at a 10 county regional level.
7. The Cities Association of Santa Clara County recommends a regional minimum wage
increase to $15.00 by 2019 as an effort to prevent an uneven playing field that can be damaging to
local economies, provide equity to our shared economy, and implement regional consistency across
the county.
The City Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Section 4.62.030 of Chapter 4.62 (Citywide Minimum Wage) of the Palo Alto
Municipal Code is amended to read as follows:
4.62.030 Minimum wage.
a.Employers shall pay employees no less than the minimum wage set forth in this section for
each hour worked within the geographic boundaries of the City of Palo Alto.
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160907 jb 0131546 2 Sept. 7, 2016
b.b. The minimum wage shall be an hourly rate of eleven dollars ($11.00) through December
31, 2016. On January 1, 2017, tThe minimum wage shall be an hourly rate of twelve dollars ($112.00). On
January 1, 2018, the minimum wage shall be an hourly rate of thirteen dollars and fifty cents ($13.50). On
January 1, 2019, the minimum wage shall be an hourly rate of fifteen dollars ($15.00). To prevent inflation
from eroding its value, beginning on January 1, 20196, and each January 1styear thereafter, the minimum
wage shall increase by an amount corresponding to the prior year’s increase, if any, in the cost of living,
not to exceed 5%. The prior year’s increase in the cost of living shall be measured by the percentage
increase, if any, as of August of the immediately preceding year over the level as of August of the previous
year of the Bay Area Consumer Price Index (Urban Wage Earners and Clerical Workers, San Francisco
OaklandSan Jose, CAU.S. City Average for All Items) or its successor index as published by the U.S.
Department of Labor or its successor agency, with the amount of the minimum wage increase rounded to
the nearest multiple of five ($.05) cents. If there is no net increase in the cost of living, the minimum wage
shall remain unchanged for that year. The adjusted minimum wage shall be announced by October 1 of
each year, or as soon as practicable thereafter if the Consumer Price Index for August has not yet been
published, and shall become effective as the new minimum wage on January 1st of each year.
SECTION 2. CEQA. The City Council finds that this ordinance is exempt from the provisions
of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California
Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility
of significant environmental effects occurring as a result of the adoption of this ordinance.
SECTION 3. Severability. If any provision or clause of this chapter is held to be
unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not
affect other provisions of this chapter, and clauses of this chapter are declared to be severable.
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160907 jb 0131546 3 Sept. 7, 2016
SECTION 4. Effective Date. This ordinance shall become effective upon the
commencement of the thirtyfirst day after the date of its adoption.
INTRODUCED: September 26, 2016
PASSED: October 17, 2016
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Asst. City Attorney City Manager
Director of Administrative Services
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