CC - 1995-28 - Supporting SB 500 increase in Minimum WageRESOLUTION NO. 95-28
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD SUPPORTING SB 500 CALLING
FOR AN INCREASE IN THE MINIMUM WAGE
WHEREAS, the Industrial Welfare Commission (IWC) in the
Department of Industrial Relations has the authority to establish
minimum standards for wages, hours and working conditions for
California workers; with the state minimum wage not being less than
the federal minimum wage; and
WHEREAS, while both the state and federal minimum wage levels
are $4.25 per hour, the IWC has the authority to establish a higher
level than the federal level; and
WHEREAS, the cost of living in California, both in terms of
housing and essential commodities, is significantly higher than the
national averages; with Los Angeles County being one of the highest
cost of living areas in the state; and
WHEREAS, the current state minimum wage falls far short in
supplying the necessary cost of proper living and in maintaining the
health and welfare of California employees; and
WHEREAS, it has been seven years since the last adjustment of
the state minimum wage when it was increased from $3.35 to $4.25; and
WHEREAS, while workers should not earn less on the job than on
welfare, a full-time minimum wage worker earns under the poverty
level for a family of four; and
WHEREAS, an increase in the minimum wage would reward work and
assist the growing number of women and minorities who only make the
minimum wage and are increasingly impoverished; and
WHEREAS, recent polls by both the Los Angeles Times and the Wall
Street Journal/NBC Survey indicate that over 70% of Californians, and
the nation, want an increase of the minimum wage.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Rosemead supports an increase of the state minimum wage as
proposed under SB 500 and urges the legislature to enact this
urgently needed legislation.
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to
transmit a copy of this Resolution to the City's representatives in
the State Legislature and to the cities of the Los Angeles Division
of the League of California Cities.
PASSED, APPROVED and ADOPTED this 25th day of May, 1995.
ATTEST:
CITY CLERK.,
I hereby certify thattthe foregoing Resolution No. 95-28 was duly
and regularly adopted by the Rosemead City Council at a regular
meeting held on the 27th day of June, 1995, by the following vote:
Yes: Btuesch, Vasquez, Taylor, Imperial
No: Clark
Absent,:. Wone>
Abstain: NNurs`-e
/7 Y4
CITY-.CLF.FK- y,
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JUN 22 '95 10:11AM GONSALVES & SON . P.3i3
CA SB 500
06/22/95
Appropriations Committee Fiscal Summary
SB 500 (Solis)
Amended:
Consultant: Sedrick Mitchell
Policy Vote: I.R. (4-2)
Hearing Date: 5/25/95
Page 1
BILL SUMMARY: SB 500 requires that on or after June 1, 1996, the minimum wage
for all industries shall be not less than $5 per hour. In addition, this bill
provides that on or after June 1, 1997, the minimum wage for all industries
shall be not less than $5.75 per hour.
Major Provisions
DIR
Health Services
Local Governments
CCC/Ameri-Corp
Fiscal Impact (in thousands)
1995-96 1996-97 1997-98
$565
Unknown but in excess of $10,000
Unknown
$288 $3,744 $7,000
STAFF COMMENTS: SUSPENSE FILE
Fund
General
General/Federal
Local
General
Existing law provides that the Industrial Welfare Commission (IWC) in the
Department of Industrial Relations has the authority to establish minimum
standards for wages, hours and working conditions for workers in California.
In addition, the IWC is required to conduct a full review of the minimum wage
at least once every two years. According to the IWC, hearings arc scheduled
to take place beginning in July and ending in August of this year. If, based
on these hearings, the IWC determines that a wage increase may be warranted,
a wage board will be convened and which recommends a new wage. According to
the IWC this process typically takes 18-22 months to complete.
According to the Department of Industrial Relations (DIR) this bill would
force the department to reprint and distribute IWC work orders at a cost of
approximately $565,000. In addition, other state and county programs could
be adversely affected. For example, the Department of Health Services -
estimates that Medi-Cal nursing facility rates will rise by approximately $
10 ml]lion in labor add-on costs-
According to the State Controller's Office, the California Conservation corps
(CCC) and the Ameri-carp programs have a total of 2,400 employees currently
earning minimum wage. Assuming the affected individuals work an average of 40
hours per week for 12 months added labor costs will be $288,000 in FY 95-96;
$3.74 million in FY 96-97; and $7 million in FY 97- 98.
END OF REPORT