Item Coversheet

Committee Assignments - C4  B




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:February  12, 2020
 



SUBJECT:REFERRAL TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO DISCUSS THE LIVING WAGE RATES FOR FISCAL YEAR 2020/2021, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTION 2-4, OF THE CITY CODE.

RECOMMENDATION

Approve the referral.

BACKGROUND/HISTORY

On October 18, 2017, the City Commission approved increases to the minimum wage rate, known as the living wage rate, that service contractors are required to pay their employees in the following phased-in approach.

 

1. Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no less than $13.88 per hour without health care benefits.

2. Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $11.70 per hour with health care benefits of at least $2.74 per hour, or a living wage rate of no less than $14.44 per hour without health care benefits.

3. Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than$15.00 per hour without health care benefits.

 

During each subsequent annual budget discussions, the City Commission reaffirmed the phased-in rates approved in October 2017.

ANALYSIS

Pursuant to Sec. 2-408(d) the City Commission shall consider annually to index, or not index, the living wage rate if it determines it would be fiscally sound to implement in a particular year. The living wage rate may be indexed annually for inflation using the Miami consumer price index for all Urban consumers (CPI-U) Miami/Ft. Lauderdale/West Palm Beach. The supplemental health care benefits rate may be separately indexed annually for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers (CPI-U) for the Miami/Ft. Lauderdale area, for medical care only, as issued by the U.S. Department of Labor's Bureau of Labor Statistics.

CONCLUSION

The Administration seeks guidance from the Finance and Economic Resiliency Committee on the living wage and health care benefits rates for fiscal year 2021 and beyond.

Applicable Area

Not Applicable
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Organizational Innovation - Improve employee safety and wellness.
Legislative Tracking
Procurement