CITY COUNCIL STAFF REPORT
MEETING DATE: December 16, 2015
PREPARED BY: Michelle Katsuyoshi/Human Resources Division
APPROVED BY: City Manager
Title
PART-TIME TEMPORARY AND SEASONAL EMPLOYEES RESOLUTION AND CALIFORNIA MINIMUM WAGE
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt Part-Time Temporary and Seasonal Employees Resolution increasing the minimum salary of selected classifications to $10.00 per hour and increase other selected classification salary ranges effective the pay period including January 1, 2016, and authorize the City Manager to increase salaries when necessary to comply with state and federal minimum wage laws.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Supporting youth
Fostering a positive organizational culture
Preserving and cultivating public trust
REPORT NARRATIVE:
Effective January 1, 2016, the minimum wage in California will increase from $9.00 per hour to $10.00 per hour. This increase to the California minimum wage will have an impact on some of salaries of the City's part-time temporary and seasonal classifications.
Most employers in California are subject to both the federal and state minimum wage laws. The effect of this dual coverage is that when there are conflicting requirements in the laws, the employer must follow the stricter standard; that is, the wage that is higher and most beneficial to the employee. Thus, since California's current law requires a higher minimum wage rate than the current federal minimum wage of $7.25 per hour, the city of Morgan Hill must pay the state minimum wage rate unless an employee is exempt under California law.
Included in the attached Part-Time Temporary and Seasonal Employees Resolution is the recommended salary schedule, which includes the salary increases for select classifications from a minimum of $9.00/$9.50 per hour to $10.00-$12.50 an hour. Also, because the minimum hourly rates are increasing for some entry-level positions (i.e. Recreation Leader, Lifeguard), staff recommends some salary equity adjustments due to internal salary compression. For example, the proposed rate for Recreation Leader is $10.00 - $14.00/per hour and the next level of Senior Recreation Leader is $14.00 - $19.00/per hour.
Staff also recommends adding several new temporary and seasonal classifications in the Community Services Department to better describe the positions' duties and responsibilities. The recommended new classifications include: Deck Coordinator, Skate Park Attendant, Welcome Desk Assistant, and Welcome Desk Coordinator. It is also recommended that the current classification of Recreation Program Coordinator be re-tilted to Recreation Specialist to differentiate the position from the permanent, regular Recreation Coordinator classification.
COMMUNITY ENGAGEMENT: Inform
Post the adopted Part-Time Temporary and Seasonal Employees Resolution on the City's HR website.
ALTERNATIVE ACTIONS:
1. There is no alternate action for increasing any classification that is currently lower than $10.00 per hour because the City is subject to both the federal and state minimum wage laws.
2. Do not increase other selected classification salary ranges.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On July 2, 2014, Council adopted the Temporary and Seasonal Employees Resolution increasing the minimum wage of selected classifications to $9.00 per hour effective July 1, 2014.
FISCAL AND RESOURCE IMPACT:
The fiscal impact to increase select part-time temporary and seasonal classifications from $9.00/ $9.50 per hour to $10.00/$12.00 per hour is included in the FY 15-16 Adopted Budget.
Future salary increases would have a fiscal impact as select positions' salary increases fall within the new ranges.
CEQA (California Environmental Quality Act):
Not a Project
LINKS/ATTACHMENTS:
Part-Time Temporary and Seasonal Employees Resolution and Salary Schedule