LTC 201-2020 Living Wage Rates for Fiscal Year 2021MIA MIBEACH
Office of the City Manager
LTC # 201-2020 LETTE R TO COMMISSION
TO:
FROM:
DATE:
Mayor Dan Gelber and Members oft e City Co
Jimmy L. Morales, City Manager
June 3, 2020
ission
Living Wage Rates for Fiscal Year 2021
Section 2-408 of the City Code requires, for certain service contracts, that contractors pay
employees the living wage rates that have been approved by the City Commission for any given
year. The current living wage rates, which were approved by the City Commission on September
25, 2019 and became effective on January 1, 2020, are:
$15.00 per hour without health care benefits; or
$11.78 per hour with health care benefits of at least $3.22 per hour.
SUBJECT:
The current rates are the result of a three-year phased-in approach originally approved by the
City Commission in October 18, 2017 with the goal of establishing $15.00 as the minimum living
wage rates by 2020.
The City Code stipulates that the living wage rates may be adjusted annually for inflation by the
City Commission. Typically, increases to the rates are considered by the City Commission during
annual budget discussions. As is customary, the Administration refers an item to the Finance and
Economic Resiliency Committee for a discussion on adjusting the living wage rates for the
subsequent year. Accordingly, on February 12, 2020, the Administration requested a referral to
the Finance and Economic Resiliency Committee for a discussion and direction on any increases
to the current living wage rates that the City Commission wished to consider.
However, the living wage law also states that any annual increase to the living wage rates shall
not exceed the corresponding increase (if any) provided unclassified city employees. As you may
be aware, as a result of the impact of the COVID-19 pandemic, the City has determined that for
the subsequent year unclassified staff will not receive a cost of living adjustment to the current
rates of pay. Therefore, the living wage law precludes an increase to the living wage rates for the
subsequent year. Therefore, the item referred to the Finance and Economic Resiliency Committee
for consideration of an increase to the current living wage rates is no longer necessary and has
been withdrawn.
Given the preclusion on increasing the living wage rates in those years when no increases are
provided to unclassified staff, the living wage rates for the subsequent year, effective January 1,
2021, shall remain the same as the current rates of $15.00 per hour without health care benefits
or $11.78 per hour with health care benefits of at least $3.22 per hour. If you have any questions
on this matter, please contact Alex Denis, Procurement Director.
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JLM/MTTD