On July 27, 2022, the Director of the California Department of Finance certified that based on the annual inflation rate from 7/1/2021 - 6/30/2022, the state hourly minimum wage must be increased in accordance with Labor Code section 1182.12(c)(3)(A).  As such, effective January 1, 2023, the state hourly minimum wage will increase from $15.00 an hour to $15.50 an hour.  Currently, the City’s part-time salary rates meet the mandated minimum wage.  However, as of January 1, 2023, the City will no longer be in compliance.  Therefore, a study was conducted to determine the City’s plan for complying with the changes in the state mandated minimum wage.

The City employs approximately 157 part-time employees, 53 of whom will be below the state minimum wage starting January 1, 2023.

An external and internal compensation survey was conducted to determine the appropriate wages for all part-time classifications to meet the state mandated minimum wage, remain competitive within the market to recruit qualified candidates, and maintain internal alignment within the organization.  An increase to the City’s part-time hourly wages for four (4) classifications are recommended in order to meet these goals.  The classifications that are recommended to receive an adjustment are Police Cadet, Police Office Aide, Recreation Leader, and Recreation Specialist.  It is recommended that these four (4) classifications receive an increase of $.80 per hour. The Resolution for part-time employees has been revised to include these changes and will be effective January 1, 2023. 

The estimated wage impact for the remainder of Fiscal Year (FY) 2022-23 is $30,000.   For FY 2023-24, the wage increases will be incorporated into the upcoming biennial budget. 

It is recommended that the City Council:

• Approve the attached Resolution that amends the hourly rates for Police Cadet, Police Office Aide, Recreation Leader, and Recreation Specialist.