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Pasadena Minimum Wage Ordinance and Impacts: Options for City Council Consideration

This report presents the options for City Council to consider regarding future increases to the Pasadena minimum wage ordinance, including reaching $15 by 2020 and 2021, taking no action, or considering other alternatives. The report includes assessments of the current minimum wage rates in comparison to state and county levels.

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Pasadena Minimum Wage Ordinance and Impacts: Options for City Council Consideration

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  1. POSSIBLEAMENDMENTS TO CITYWIDE MINIMUM WAGE ORDINANCE CHAPTER 5.02 OF THE PASADENA MUNICIPAL CODEFebruary11, 2019Item 8

  2. Background • Ordinance 7278 adopted March 14, 2016 • Established local minimum wage • Mirrors that of Los Angeles City and County for the first three years • Requires Council action for any further adjustment • City Manager to present prior to Feb. 18, 2019 a report summarizing the impact of minimum wage ordinance

  3. Minimum Wage IncreasePasadena Compared To State

  4. Los Angeles and unincorporated Los Angeles County

  5. Staff engaged two well-qualified economists • Dr. Edward Leamer • BA, Mathematics, Princeton University • MA, Mathematics (Statistics), University of Michigan • PhD, Economics, University of Michigan • Dr. Michael Reich • B.A. in Mathematics, Swarthmore College • Ph.D. in Economics, Harvard

  6. Background • Dr. Leamer currently serves as Professor of Management, Professor of Economics, and Professor of Statistics. He served as the director of the UCLA/Anderson Business Forecast Project • Dr. Reich is a Professor of Economics at the University of California at Berkeley and Chair for the Center on Wage and Employment Dynamics. He served as the Director of the Institute for Research on Labor and Employment from 2004-2015

  7. Options for City Council consideration • Provide direction to proceed with further future increases to the Pasadena Minimum Wage • Presumably as envisioned in 2016 to reach $15 by July 1, 2020 & 2021 • Take no action • Statewide minimum wage would surpass Pasadena’s in 2021 • Take some other action

  8. February 2019 Assessment $15.00 $15.00 $14.25 $14.00 $13.25 Pasadena $13.00 $12.00 $12.00 $11.00 $10.50 California $10.00 Federal Rate of $7.25 Pasadena and State - Minimum Wage Increases – Large Business (26 employees or More)

  9. February 2019 Assessment $15.00 $15.00 $14.25 $14.00 $13.25 Pasadena $13.00 $12.00 $12.00 $11.00 $10.50 California $10.00 Federal Rate of $7.25 Pasadena and State - Minimum Wage Increases – Large Business (26 employees or More)

  10. February 2019 Assessment $15.00 $15.00 $14.25 $14.00 $13.25 Pasadena $13.00 $12.00 $12.00 $11.00 $10.50 California $10.00 Federal Rate of $7.25 Pasadena and State - Minimum Wage Increases – Small Business (25 employees or Less)

  11. February 2019 Assessment $15.00 $15.00 $14.25 $14.00 $13.25 Pasadena/LA $13.00 $12.00 $12.00 $11.00 $10.50 California $10.00 Federal Rate of $7.25 Pasadena and State - Minimum Wage Increases – Small Business (25 employees or Less)

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