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1.H. STAFF REPORT - RESOLUTION TO AMEND PAY SCHEDULE FOR MINIMUM WAGE INCREASE

Placentia City Council
January 10, 2023

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1.H. STAFF REPORT - RESOLUTION TO AMEND PAY SCHEDULE FOR MINIMUM WAGE INCREASE
Meeting
January 10, 2023
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Placentia City Council
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2
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Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF HUMAN RESOURCES
DATE: JANUARY 10, 2023

AGENDA REPORT
SUBJECT: RESOLUTION TO AMEND THE PAY SCHEDULE FOR PART-TIME

EMPLOYEES IN COMPLIANCE WITH THE STATE MINIMUM WAGE

INCREASE
FISCAL
IMPACT: FY22-23 $9,750 ($19,500 annually) in account 104071-5005.

SUMMARY:

To comply with state minimum wage increase effective January 1, 2023, it is necessary to amend the pay schedule for part-time employees. It is anticipated that the cost to implement this minimum wage increase will cost the City approximately $19,500 per year in total compensation.

Prorated costs in the amount of $9,750 will be funded by the General Fund for the remainder of the fiscal year.

RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Adopt Resolution No. R-2023-03 amending the pay schedule for part-time employees to reflect state minimum wage requirements; and

2. Approve a budget amendment in the prorated amount of $9,750 from the General Fund's fund balance for the remainder of the fiscal year.

STRATEGIC PLAN STATEMENT:

This item is consistent with the City Council approved 5 -Year Strategic Goal #8 to Improve City Governance, under Objective #1, which is update all rules, policies and procedures to be consistent with MOUs and State/Federal regulations.

DISCUSSION:

The City's Pay Schedule for Part -Time Positions consists of non-competitive services positions that are excluded from the civil services system. California employers are governed by federal and state minimum wage laws. For 2022, the California minimum wage was $15.00.

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Jan 10, 2023

City Council Agenda
January 10, 2023

Page 2 of 2 ends

Due to cost -of -living increase required by the State's minimum wage law, effective January 1, 2023, California's minimum wage will increase from $15.00 top $15.50 per hour for all employers. California Labor Code section 1182.12 requires minimum wage to be increased by at least 3.5 percent if the State's rate of inflation exceeds 7 percent. The California Department of Finance recently announced the rate of inflation increased to 7.9 percent, thus triggering the statewide increase in minimum wage. This will immediately affect approximately thirty-two (32) part-time employees, who now earn Tess than $15.50 per hour in job classifications shown on the proposed resolution and pay schedule. Staff is recommending that the City Council adopt the proposed part-time pay schedule to ensure all employees are paid at least the California minimum wage of $15.50 per hour.

The adoption of this resolution is necessary pursuant to Personnel Rules and Regulations of the City of Placentia, Rule IV, Section 1, which states proposed compensation schedules must be submitted to the City Council for approval.

FISCAL IMPACT:

This proposal will cost the City approximately $19,500 per year in total compensation. Staff requests approval of a budget amendment in the prorated amount of $9,750 from the General Fund's fund balance for the remainder of the current fiscal year.

Prepa ed by: Reviewed and approved:

Alice Burnett R sanna Ramirez
Deputy City Adminis
Director of Human Resources
_ Reviewed and approved:

Dam u a�
City Administrator
Attachments:

1. Resolution No. R-2023-03

2. Salary Schedule, Part -Time

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