Oakland minimum wage, how much? The ballot initiative Measure FF, which was a successful effort to raise wages for 48,000 Oakland workers and guarantee paid sick days for another 56,700, is on the ballot for another year. While Oakland is a burgeoning tech hub and destination for tourists, the growing income gap between longtime residents and recent arrivals is a serious concern. This income gap has led some residents to resort to an underground street economy, which is characterized by higher rates of crime, drugs, and violence.
As of January 1, the minimum wage in Oakland , California will be $15 per hour for employers with 26 or more employees and $14 per hour for employers with 25 or fewer employees. Both figures will increase each year to keep pace with inflation from 2020 through 2022. Employees in Oakland have waited long enough for a raise, and a higher wage floor means businesses benefit through reduced employee turnover and higher productivity. Ultimately, Oakland’s minimum wage gives new income to low-income workers who will spend it at local businesses throughout the city.
Oakland Minimum Wage (Measure FF)
In November, Californians will have the opportunity to vote on a new Oakland minimum wage law. Measure FF would require businesses with fewer than ten employees to provide at least five days of paid sick leave. Companies with ten or more employees would have to provide nine days. Small businesses would be required to offer five days of paid sick leave, which equates to about one hour per thirty hours worked.
Oakland Minimum Wage is currently set at $10.50 per hour for full-time workers. Oakland is one of many cities in California with minimum wage laws. This law is intended to provide fair wages to all employees. Oakland residents and employers must pay minimum wage rates as outlined by Measure FF. Employers who refuse to comply are committing wage theft. They could be liable for thousands of dollars in unpaid wages.
Oakland minimum wage next time
Oakland voters are being asked to vote on an alternative ballot measure for the minimum wage, dubbed Lift Up Oakland. Proponents of this measure, which would increase the minimum wage in the city to $13 per hour by 2017 for some workers, say this measure is necessary to reduce the wealth gap. Other benefits of Lift Up Oakland include increased paid sick days and cost-of-living increases. The alternative measure is also opposed by the Oakland Metropolitan Chamber of Commerce.
As Oakland continues to experience rapid growth and skyrocketing rents, some circles are worried that working-class residents will be displaced from their homes and communities. Many Oakland residents are stuck in jobs that pay very little or do not provide benefits. Others work in poorly-paid service jobs, like at fast food restaurants and retail. These workers are forced to pay a high rental rate, putting their wages at risk. OPD executions and lawsuit settlements are a huge source of poverty in Oakland.
Impact on small businesses
The Oakland minimum wage hike has caused growing pains for many small businesses and restaurants in the city. In the Chinatown neighborhood, for example, many businesses have had to cut their workforce, with the exception of one. The city has also seen the closing of dozens of businesses, including a bakery owned by Carl Chan, whose family has owned the business for more than two decades. Whether the new minimum wage increases businesses will be difficult to predict, but some small business owners in the Chinatown area have already decided to close.
The minimum wage increase could affect the economy of Oakland, but it has not been proven whether the city’s small businesses will experience a significant impact. According to previous studies, there was little to no impact on employment and only a small increase in restaurant prices and operating costs. In addition, city officials will not know whether any businesses will close in the first year following the new minimum wage because of high turnover in the restaurant industry.
Cost to employers of Oakland Minimum Wage
The cost to employers of the Oakland minimum wage is set by the city’s labor laws. The Oakland minimum wage is based on Chapter 5.92 of the Oakland Municipal Code and applies to employees who work for at least two hours a week. The city has no set maximum rate for this wage, but it is usually adjusted every January in line with the Consumer Price Index. Another important component of the minimum wage law in Oakland is paid sick leave. Workers are entitled to one hour of paid sick leave for every thirty (30) hours they work. Small businesses and employers have a cap of forty (40) hours per year, while larger employers are required to offer seventy-two hours. An employee may use sick leave for their own illnesses, or to care for a family member or designated sick person.
The measure requires employers in the hospitality industry to pay the minimum wage and require service charges for workers. Hospitality employers are defined as those who own, control, or operate any portion of a hotel, restaurant, banquet facility, or similar business. Employers are required to post these laws as well. Employers can purchase laminated all-in-one labor law posters to meet the posting requirements. In addition, Oakland requires employers to display the minimum wage rate on their pay stubs.
Potential for voter approval
In Oakland, California, the proposal for a citywide minimum wage on the ballot was on the forefront of the 2014 election. Although an alternative measure proposed by the Oakland Chamber of Commerce was rejected in the summer, the Registrar of Voters predicted the measure would pass with 81 percent of the vote. Measure FF was on the ballot Nov. 4 and passed by a wide margin. It will take effect in January 2016.
Meanwhile, an alternative ballot measure put forth by the Oakland Chamber of Commerce would raise the minimum wage to $15 an hour gradually. The measure would increase the minimum wage for employees of large and small businesses, as well as nonprofit organizations. It would also require employers to give their workers paid sick leave. Both measures could be put on the ballot in November 2014 or approved immediately by the City Council. A preliminary vote for the measure is scheduled for August 2014. The City Council has the authority to place both the minimum wage and the competing ballot measures on the November ballot.
The changes will go into effect January 1, 2022. And for Oakland residents, the minimum wage for employees in that city will be $12.25 in 2019, $13.75 in 2020, and $15 in 2023. Due to high costs of living, a no wage increase will occur between 2022 and 2023.
Oakland Minimum Wage Conclusion
Oakland Mayor Libby Schaaf stated, “no one working full time should be living in poverty. Together, we will build an Oakland that respects the worth and dignity of every person.” This statement is true for everyone not just residents within Oakland but across California. By passing a $15 minimum wage, Oakland is taking part in what California legislators promised was a statewide movement to increase the minimum wage from $8 to $10 by January 2016 . With the passing of this ordinance, Oakland and California are taking steps to alleviate inflation and ensure that each citizen can comfortably pay his or her bills on a monthly basis.
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Oakland Minimum Wage FAQ
What is Oakland 2022 minimum wage?
Beginning January 1, 2022, Oakland’s minimum wage requirement will be $15.06 per hour. The measure passed with more than 75 percent of the vote and is set forth in the code section 5.92 of the Oakland Municipal Code.
What is the minimum wage in Oakland 2021?
The state of California will raise the minimum wage to $14 per hour for employers with 26 or more employees by January 1, 2021. The minimum wage for employers with 25 or fewer employees will increase to $13 per hour by that date.
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What is Oakland 2022 minimum wage?
On January 1, 2022, the minimum wage rates in Minnesota will be adjusted for inflation to $10.33 an hour for large employers and $8.42 an hour for other state minimum wages.