1. POSSIBLE AMENDMENTS TO CITYWIDE MINIMUM WAGE ORDINANCE CHAPTER 5
POSSIBLE AMENDMENTS TO CITYWIDE MINIMUM WAGE ORDINANCE CHAPTER 5.02 OF THE PASADENA MUNICIPAL CODE February 11, 2019 Item 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 Increase Pasadena Compared To State
Pasadena / Los Angeles Minimum Wage Schedule
Employers
26 and more
25 and fewer
July 1, 2016
$10.50 -
July 1, 2017
$12.00
July 1, 2018
$13.25
Pasadena February 2019 Assessment of Ordinance
July 1, 2019
$14.25
July 1, 2020
$15.00
July 1, 2021
July 1, 2022
$15.00*
California Minimum Wage Schedule
Employers
26 and more
25 and less
Jan. 1, 2017
$10.50
$10.00
Jan. 1, 2018
$11.00
Jan. 1, 2019
$12.00
Jan. 1, 2020
$13.00
Jan. 1, 2021
$14.00
Jan. 1, 2022
$15.00
Jan. 1, 2023
Jan. 1, 2024
*+ Indexed CPI

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

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

9. $15.50
$15.00
$14.50
$14.00
$13.50
$13.00
$12.50
$12.00
$11.50
$11.00
$10.50
$10.00
$9.50
$9.00
$8.50
$8.00
$7.50
$7.00
$6.50
$6.00
$5.50
$5.00
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
February 2019 Assessment
$15.00
$15.00
$14.25
$14.00
Pasadena
$13.25
$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. $15.50
$15.00
$14.50
$14.00
$13.50
$13.00
$12.50
$12.00
$11.50
$11.00
$10.50
$10.00
$9.50
$9.00
$8.50
$8.00
$7.50
$7.00
$6.50
$6.00
$5.50
$5.00
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
February 2019 Assessment
$15.00
$15.00
$14.25
$14.00
Pasadena
$13.25
$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)

11. $15.50
$15.00
$14.50
$14.00
$13.50
$13.00
$12.50
$12.00
$11.50
$11.00
$10.50
$10.00
$9.50
$9.00
$8.50
$8.00
$7.50
$7.00
$6.50
$6.00
$5.50
$5.00
$4.50 14 15 16 17 18 19 20 21 22 23 24 25
February 2019 Assessment
$15.00
$15.00
$14.25
$14.00
Pasadena
$13.25
$13.00
$12.00
$12.00
$11.00
$10.50
$10.00
California
Federal Rate of $7.25
Pasadena and State - Minimum Wage Increases – Small Business (25 employees or Less)

12. Pasadena/LA California
$15.50
$15.00
$14.50
$14.00
$13.50
$13.00
$12.50
$12.00
$11.50
$11.00
$10.50
$10.00
$9.50
$9.00
$8.50
$8.00
$7.50
$7.00
$6.50
$6.00
$5.50
$5.00
$4.50 14 15 16 17 18 19 20 21 22 23 24 25
February 2019 Assessment
$15.00
$15.00
$14.25
$14.00
Pasadena/LA
$13.25
$13.00
$12.00
$12.00
$11.00
$10.50
$10.00
California
Federal Rate of $7.25
Pasadena and State - Minimum Wage Increases – Small Business (25 employees or Less)