On November 14, 2017, Agenda Item No. 37, the Board considered a motion to direct the Office of the County Attorney to amend the Living Wage Ordinance to increase the living wage paid to covered employees, including the health benefit amount, and to amend the method for indexing the living wage. Instead of providing that direction, the Board directed County administrative and legal staff to provide recommendations regarding changes to the Living Wage Ordinance and a financial analysis of the proposed changes.
On August 14, 2018, Agenda Item No. 101, the Board directed the Office of the County Attorney to draft an Ordinance amending the Living Wage Ordinance to increase the hourly wage paid to covered employees, including the health benefit amount. Additional staff analysis was required to comply with this direction, including analysis regarding the timing and amount of the increases. On October 16, 2018, the Board held a workshop to further discuss this issue.
Currently, the Living Wage Ordinance requires that covered employers pay covered employees $12.38 per hour with qualifying health care benefits amounting to at least $1.61 per hour, or $13.98 per hour without qualifying health care benefits. Immediate action is required to amend the Living Wage Ordinance. This proposed amendment would increase the hourly wage for all covered employees to $13.27 per hour with qualifying health care benefits, or $14.90 per hour without qualifying health care benefits (unless subsequently amended, the qualifying health care benefit amount will be $1.63 per hour as of January 1, 2019), effective January 1, 2019. Other matters, including revisions to the health care benefit and indexing provisions, could be accomplished through a subsequent Ordinance.
Although living wage costs incurred by private contractors may generally not be passed through to the County, the County is willing to provide reasonable compensation for the demonstrated financial impact of this increase to the living wage. Accordingly, this item would direct County staff to negotiate appropriate contract amendments to address this impact. The proposed Ordinance should provide that the obligation to pay the increased wage amount (except for living wage payment to County employees) begins at the earlier of July 1, 2019, or the time the County and covered employer enter into a contract amendment mitigating the financial impact. The contract amendments should provide that, once the payment obligation begins, the covered employer shall pay the employee an additional sum equal to the increase in the living wage retroactive to January 1, 2019.
Staff is also directed to study the current health care benefit amount to determine whether an adjustment is required to enable employees to obtain sufficient health care coverage. Staff must supply this information to the Board in time for the Board to discuss this matter on or before December 11, 2018.
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