HomeMy WebLinkAboutStaff Report 9749
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
October 29, 2018
The Honorable City Council
Palo Alto, California
SECOND READING: Adoption of an Ordinance Amending Chapter 4.62
(Citywide Minimum Wage) of the Palo Alto Municipal Code to Correct
and Clarify That the First Consumer Price Index (CPI) Adjustment to
the Minimum Wage Will Occur in 2020 (FIRST READING: October 15,
2018 PASSED: 8-0 Kniss Absent)
The attached Ordinance was first heard by the City Council on October 15, 2018, where it
passed 8-0, Kniss absent, with no changes. It is now before the City Council for second reading.
ATTACHMENTS:
• Attachment A: Minimum Wage Ordinance (PDF)
Department Head: Beth Minor, City Clerk
Page 2
Not Yet Approved
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Section
4.62.030 (Minimum Wage) of Chapter 4.62 (Citywide Minimum Wage) of
Title 4 (Business License & Regulations) of the Palo Alto Municipal Code
to Correct the Commencement Date of Annual Adjustments Relative to
the Consumer Price Index
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Section 4.62.030 (Minimum Wage) of Chapter 4.62 (Citywide Minimum
Wage) of the Palo Alto Municipal Code is hereby amended 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.
(b) The minimum wage shall be an hourly rate of eleven dollars ($11.00) through
December 31, 2016. On January 1, 2017, the minimum wage shall be an hourly rate of twelve
dollars ($12.00). 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 ($15.00). To prevent inflation from eroding its value, beginning on January 1,
20192020, and each January 1st thereafter, the minimum wage shall increase by an amount
corresponding to the increase, if any, in the cost of living, not to exceed 5%. The prior year's
increase in the cost of living shall be measured by the percentage increase, if any, as of August
of the immediately preceding year of the Bay Area Consumer Price Index (Urban Wage Earners
and Clerical Workers, San Francisco-Oakland-San Jose, CA for All Items) or its successor index as
published by the U.S. Department of Labor or its successor agency, with the amount of the
minimum wage increase rounded to the nearest multiple of five cents ($.05). 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 1st 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.
(c) A violation for unlawfully failing to pay the minimum wage shall be deemed to
continue from the date immediately following the date that the wages were due and payable as
provided in Part 1 (commencing with Sec. 200) of Division 2 of the California Labor Code, to the
date immediately preceding the date the wages are paid in full.
SECTION 2. If any section, subsection, clause or phrase of this Ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portion or
sections of the Ordinance. The Council hereby declares that it should have adopted the
Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the
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Not Yet Approved
fact that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
SECTION3. The Council finds that this Ordinance is exempt from the provisions of
the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possibility that the Ordinance
will have a significant effect on the environment.
SECTION 4. This Ordinance shall be effective on the thirty-first day after the date of
its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Administrative Services
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