In 2016, California passed Senate Bill 3 to incrementally increase the minimum wage each year starting from January 1, 2017 through January 1, 2022.  Under this law, the minimum wage became $12.00 per hour in 2019, and will increase to $13.00 per hour on January 1, 2020, $14.00 per hour on January 1, 2021, and $15.00 per hour on January 1, 2022.  Currently, the City’s part-time salary rates meet the mandated minimum wage.  However, as of January 1, 2020, the City will no longer be in compliance.  Therefore, a study was done to determine the City’s plan for complying with the changes in the mandated State minimum wage.

The City employs approximately 180 part-time employees, 60 who will be below the State minimum wage starting January 1, 2020.  The last salary increase to the part-time classifications was in 2008. 

An external and internal compensation survey was conducted to determine the appropriate wages for these classifications to meet the State mandated minimum wage, remain competitive with other agencies, and maintain internal alignment within the organization.  Increases to the City’s part-time hourly wages are recommended for 2020, 2021, and 2022 in order to meet these goals.  The classifications that received an adjustment in the hourly wage are Intern, Police Cadet, Police Office Aide, Recreation Specialist II and III, and Reserve Police Officer.  Depending on the job classification, the hourly wage increased $0.90 to $2.00 per hour in 2020, $0.70 to $1.40 per hour in 2021, and $0.70 to $1.40 per hour in 2022.  Additionally, the classifications of Recreation Specialist II and III have been retitled to Recreation Leader and Recreation Specialist, respectively.  For all part-time employees, the bilingual pay amount increased $0.50 per incident to be equitable and in alignment with the rate earned by full-time employees.  The Resolution for part-time employees has been updated to include these changes and outline the benefits the City provides.  The new resolution will be effective January 1, 2020. 

The estimated cost increase for FY 2019-20 is approximately $24,923, which will be absorbed in the current budget.  For FY 2020-21, the estimated increase is approximately $56,210 more than the adopted FY 2020-21 budget and adjustments will be made accordingly during the biennial budget update.  For FY 21-22, the estimated increase is approximately $69,500 more than the estimated FY 21-22 budget.

It is recommended that the City Council:

• Adopt the attached Resolution that establishes the hourly rates and fringe benefits for the City’s part-time employees.

By:  Liane Kwan, Recruitment and Selection Supervisor