TITLE
Recommendation to review draft ordinance amending the Long Beach Municipal Code by adding Part IV to Title 5; and by adding Section 5.06.020.A.7, all relating to a Long Beach Minimum Wage Ordinance, and provide further direction. (Citywide)
DISCUSSION
Pursuant to your request on July 12, 2016, this Office submits the above draft ordinance for further direction from the City Council.
On January 19, 2016, the City Council requested this Office to prepare a Long Beach Minimum Wage ordinance, and specifically identified certain provisions to be included. Subsequently, the state of California adopted SB 3, a statewide minimum wage ordinance, scheduled to take effect on January 1,2017. In addition, on July 12, 2016, the City Council directed the City and the International Association of Machinists ("lAM") to complete the meet-and-confer process on the decision and impacts of this proposed ordinance, and return in thirty days with the results of the process. This Office now requests the City Council to provide further direction to resolve conflicts in certain specific provisions in the draft ordinance.
The particular provisions are as follows:
1 . Pursuant to City Council direction, the parties met and conferred on
July 21, 2016 and agreed that all lAM employees shall be paid at least the minimum hourly rate as set forth in the City minimum wage ordinance if adopted by the City Council. Therefore, this issue has been resolved.
2. Sec. 5.200.020.0: Requires a study to be commissioned in the first
quarter of 2019, analyzing the impacts and effects of the Long Beach Minimum Wage ordinance prior to instituting future wage increases beginning in 2020. If increases are not implemented, this provision will cause the City to be in conflict with the state minimum wage in 2021. Options include removing the reference to the study in 2019 or having the City ordinance sunset in 2021 if the Council does not vote to increase the local minimum wage in 2019.
3. Sec. 5.200.020.F: Definition of Consumer Price Index increases will
result in a variance with the requirements of the state minimum wage. Options include revisions to insure there is no conflict with the state's wage rates, as adjusted, or having the local minimum wage ordinance sunset in 2023 at which time the state CPI will be in effect.
4. Sec. 5.200.020.G: Definition of "Learners" is inconsistent with the
state minimum wage law, in that it permits payment of 85% of the applicable minimum wage during the first 480 hours of a Learner's employment. California Labor Code section 1192 permits Learners to be paid a similarly reduced wage for 160 hours. Options include removal ofthis provision, or reducing the required hours to be consistent with state law (160 hours or fewer).
We look forward to receiving the City Council's comments and directions regarding these issues at the City Council August 23, 2016 meeting.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
CHARLES PARKIN
CITY ATTORNEY
BY:
AMY R. WEBBER
DEPUTY CITY ATTORNEY