CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 9 Section Name: {{section.name}} Account Number: 10-1311 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: May 05, 2025
SUBJECT:
Minimum Wage Enforcement – Agreement
RECOMMENDATION:
Approve an agreement with the County of San Mateo’s Office of Labor Standards Enforcement (OLSE) to provide minimum wage enforcement services for the City’s minimum wage ordinance, in an amount not to exceed $60,000, and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
On August 15, 2016, the City Council approved an Ordinance to increase the minimum wage within the City of San Mateo, above the state and federal levels, effective January 1, 2017. The adopted Ordinance includes a requirement for the City to enforce the regulation to ensure employees are receiving the mandated wage.
Since adoption of the Ordinance, the City has contracted with the City of San Jose’s Office of Equality Assurance (OEA) to provide enforcement services. The contract is set to expire on June 30, 2025. During the course of this partnership, OEA investigated three complaints in the City. A total of 23 employees were affected and received $2,982.92 in recovered wages.
The County of San Mateo established the Office of Labor Standards Enforcement (OLSE) in July 2024 to enforce minimum wage standards, address wage theft, and educate businesses on best labor practices.
Starting July 1, 2025, OLSE will provide enforcement services for several cities in the region, including South San Francisco, Redwood City, Burlingame, Belmont, Menlo Park, and Foster City. Staff is recommending San Mateo also transfer service from OEA to OLSE.
South San Francisco and San Mateo would contribute more due to having a higher number of businesses with employees, as payment is proportionally based on number of employees. The proposed agreement offers a flat fee of $20,000 annually, with one (1), one-year extension option at the same fee as the first year, adjusted by the CPI, for a total not to exceed $60,000. The negotiated agreement is included as Attachment 1 to this report.
The transition of minimum wage Ordinance enforcement from San Jose to the County’s Office of Labor Standards Enforcement (OLSE) would support the countywide effort to provide consistency within the County and help ensure the new office’s long-term viability. Since many businesses operate across multiple cities withing the County, OLSE’s broader scope will improve the ability to address multi-city complaints and improves logistics by bringing the enforcement arm closer to the source. Additionally, the County’s annual fee of $20,000 is lower than San Jose’s annual cost of $25,000.
While the contract amount is within the City Manager’s approval authority, Council approval is required due to the
CITY OF SAN MATEO
interagency nature of the agreement. Upon Council approval, the contract will be presented to the San Mateo County Board for final review.
BUDGET IMPACT:
The agreement with OLSE is for an amount not to exceed $60,000. Services will be billed annually on September 15 and April 15. The agreement will be funded from the Economic Development Program budget.
ENVIRONMENTAL DETERMINATION:
This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Agreement
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009