Agenda Report
Fullerton City Council
MEETING DATE: DECEMBER 17, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES PREPARED BY: LAURA GIANNETTI-MERCER, HUMAN RESOURCES MANAGER II April Thompson, Human Resources / Risk MANAGEMENT Analyst I SUBJECT: CLASSIFICATION PLAN UPDATE RELATING TO MINIMUM WAGE INCREASE
SUMMARY
This item would update non-regular employee hourly rates in compliance with Labor Code, Division 2, Part 4, Chapter 1, Section 1182.12(c) minimum wage requirements.
PROPOSED MOTION
Adopt Resolution No. 2024-XXX.
RESOLUTION NO. 2024-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AMENDING RESOLUTION NO. 2024-035 APPENDIX A, NON-REGULAR EMPLOYEE SCHEDULE OF HOURLY PAY RATES AND ALLOCATION OF CLASSES TO SALARY RANGES
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
This item is to be in compliance with the change in minimum wage as outlined by the update in State law.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The estimated cost for the $16.50 minimum wage increase for the remainder of Fiscal Year (FY) 2024-25 totals $14,379. This amount includes wage adjustments and applicable benefit contributions. The following lists projected impacts by department:
Parks and Recreation $11,961
Library $ 1,258
Public Works $ 448
Police $ 386
Fire $ 326.
Staff expects expenditures to remain within the approved FY 2024-25 Adopted Budget for the affected departments and does not request a budget adjustment.
BACKGROUND AND DISCUSSION
Current Minimum Wage Law
California revised Labor Code Section 1182.12 on April 4, 2016 to incrementally increase the minimum wage each January through January 1, 2022, at which time it reached $15.00 per hour.
Labor Code section 1182.12(c) requires that following the minimum wage increase to $15.00 per hour, the Director of Finance calculate the adjusted minimum wage to the lesser of 3.5% or the rate of change, as specified, for the United States Bureau of Labor Statistics non-seasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) no later than August 1 of each year. This increased the minimum wage to $16.00 per hour effective January 1, 2024.
The Director of Finance found the U.S. CPI-W for July 1, 2023 through June 30, 2024 increased by 3.18% (Attachment 1). This will increase the minimum wage by 3.18% to $16.50 per hour effective January 1, 2025.
Staff recommends the following to address the mandated increase and maintain an appropriate differential between specified classifications in the group:
Group A: CalPERS Exempt
Group B: CalPERS
Classification
Current
Proposed
Classification
Current
Proposed
CS Leader I
$16.00
$16.50
Fire Utility Worker I
$16.50
$16.75
CS Leader II
$16.25
$16.75
Fire Utility Worker II
$17.50
$17.75
CS Leader-Sr.
$16.50
$17.00
Sr. P&R Specialist I
Library Page I
$16.00
$16.50
Step 1
$18.50
$18.75
Library Page II
$16.50
$17.00
Step 2
$19.00
$19.25
Laborer
$16.00
$16.50
Step 3
$19.50
$19.75
CS Specialist I
$17.00
$17.50
Sr. P&R Specialist II
CS Specialist II
$17.50
$18.00
Step 1
$20.00
$20.25
CS Specialist III
$18.00
$18.50
Step 2
$20.50
$20.75
Police Cadet
$16.50
$16.75
Step 3
$21.00
$21.25
Sr. Police Cadet
$17.75
$18.00
Parking Control Aide
$18.00
$18.25
Intern I
$16.50
$16.75
Police Comm Aide
$19.50
$19.75
Intern II
$18.00
$18.25
Intern III
$19.50
$19.75
The estimated fiscal impact based on current staffing for the remainder of FY 2024-25 totals $14,379. Changes related to the proposed resolution would become effective December 21, 2024, the beginning of the pay period covering January 1, 2025.
Attachments:
Attachment 1 – Draft Resolution 2024-XXX
Attachment 2 – Director of Finance Determination and Certification cc: City Manager, Eric J. Levitt
Classification Plan Update – Minimum Wage
December 17, 2024 - Page 5