HomeMy WebLinkAboutMemo - Mail Packet - 10/4/2022 - Memorandum From Ginny Sawyer Re: Local Minimum Wage (Lmw) Updates
City Hall
300 LaPorte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6505
970.224.6107 - fax
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MEMORANDUM
Date: September 29, 2022
To: Mayor and City Council
From: Ginny Sawyer, Policy and Project Manager
Thru: Kelly DiMartino, City Manager
Tyler Marr, Interim Deputy City Manager
RE: Local Minimum Wage (LMW) Updates
Bottom Line
Staff has confirmed the following:
The State Labor Office can/will take and investigate wage complaints regardless of LMW
ordinance.
Any LMW must apply to everyone (certain employments groups cannot be exempted.)
The State has a 15% wage reduction for minors (which would still apply under a LMW.)
Additional information included:
Info sheet from the State (attached)
Information on regional effort led by Boulder Consortium of Cities
Proposed options for Fort Collins LMW
Estimates of FAMLI costs
Regional Effort
The Boulder County Consortium of Cities has begun convening electeds and staff from
neighboring communities to learn more and discuss LMW options and desires within these
communities. The first meeting was held on September 21, 2022 and was informational.
Presentations were provided by the State Labor Office, the Colorado Center on Law and Policy,
and the National Employment Law Project.
Should communities wish to work together through IGAs, those involved would count as one
Proposed Options
Staff has begun developing implementation options that aim to address Council desire to:
Reach an $18-$19 wage within 3-4 years
Provide predictability to businesses
Account for the planned 2023 9% wage increase ($1.09/hour)
Two options are presented here and any feedback can be used to create additional scenarios
prior to the November 15, 2022 Council meeting. Once a desired wage is reached, Staff is
proposing ongoing wage adjustments to track the Consumer Price Index (CPI) with a 2% floor
and a 5% ceiling. All CPI adjustments incorporated below are assumptions.
Scenario A
Year CPI State
MW
Annual Salary
A City MW
Annual Salary
Difference 40hrs/wk & 2
holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $0.00 $13.65 $28.2K $0.00
2024 5% $14.33 $29.6K $1.50 $15.15 $31.3K $0.82
2025 3% $14.76 $30.5K $1.75 $16.90 $34.9K $2.14
2026 3% $15.21 $31.4K $1.60 $18.50 $38.2K $3.29
2027 3% $15.66 $32.3K 3% $19.06 $39.3K $3.39
2028 3% $16.13 $33.3K 3% $19.63 $40.5K $3.50
2029 3% $16.62 $34.3K 3% $20.22 $41.7K $3.60
2030 3% $17.11 $35.3K 3% $20.82 $43.0K $3.71
Scenario A provides the longest lead time for businesses by only adjusting to the state increase
of $1.09 an hour in 2023. Lead time would allow predictability for business and a definitive ramp
over time for employees.
Scenario B
Year CPI State MW
Annual Salary
B City MW
Annual Salary
Difference 40hrs/wk & 2
holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $1.00 $14.65 $30.2K $1.00
2024 5% $14.33 $29.6K $1.50 $16.15 $33.3K $1.82
2025 3% $14.76 $30.5K $1.75 $17.90 $36.9K $3.14
2026 3% $15.21 $31.4K $1.00 $18.90 $39.0K $3.69
2027 3% $15.66 $32.3K 3% $19.47 $40.2K $3.81
2028 3% $16.13 $33.3K 3% $20.05 $41.4K $3.92
2029 3% $16.62 $34.3K 3% $20.65 $42.6K $4.04
2030 3% $17.11 $35.3K 3% $21.27 $43.9K $4.16
Scenario B gets near the $19 wage in a faster timeline.
FAMLI
Colorado voters approved Proposition 118 in November of 2020, paving the way for a state-run
Paid Family and Medical Leave Insurance (FAMLI) program. Both employers and employees
will contribute premiums to the program. Premium payments begin in 2023, so employees may
start to see a FAMLI premium deduction on their pay stubs beginning January 1, 2023.
Employers and their employees are both responsible for funding the program and may split the
employer and 0.45% paid by the employee. Employers may also elect to pay the full amount if
they choose to offer this as an added perk for their employees.
Businesses with nine or fewer employees do not have to contribute to the program but do need
to remit their employees' share (0.45%) of the premium on behalf of employees each quarter.
The Colorado Department of Labor offers a calculator for employers to help estimate costs. The
following represent examples from the calculator:
The below assume an hourly wage and 25 hours a week. Cost is per employee.
$13.65/hr at 25 hours a week = $80 annual cost to both employee and employer
$15.00/hr at 25 hours a week = $88 annual cost to both employee and employer
$19.00/hr at 25 hours per week = $111 annual cost to both employee to employer