Exhibit CC 09-20-2016 Item No. 9 Minimum Wage Written Communicationcc_ 1/c21J/r~
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Cupertino Chamber of Commerce
Your Partner in Silicon Valley
#9 Minimum Wage Recommended Changes City Council Meeting 9/20/16
The members of the Cupertino Chamber of Commerce appreciate the work by
staff to reach out to local businesses to evaluate the anticipated impact of this
proposed ordinance.
• As documented in the staff report, the assessment indicates that small
businesses anticipate a negative impact should the city council take the
action as recommended.
• As indicated in the staff report, small businesses in Cupertino do not
represent the majority of employees, but they do represent the majority of
service businesses especially restaurants.
• The economic analysis confirms that the smaller the business, the more
likely it is to experience economic hardship from the action as proposed.
• In order to help small businesses in Cupertino, the chamber of
commerce recommends the city council include the accommodations to
the proposed measure referred to in the staff report. Specifically:
a. Small business exemption for businesses with 10 employees or less (as
indicated by the most concerned small businesses on p4 of the staff
report).
b.Exemption for new and temporary seasonal employees, targeting
summer jobs for teens. (Staff Report pS)
c. Exclude tipped employees from ordinance. (Staff Report pS & 6)
ct.Learner exemption.(Staff Report p6)
Proposed Changes to the Draft Ordinance
• It is also recommended that section 3.37.040(f) of the proposed ordinance
be modified so that the annual determination recommendation from staff
will be presented on a regular agenda of the city council. (Ordinance p4)
• A fundamental reason for cities in Silicon Valley to consider a local
minimum wage ordinance is due to unique local economic conditions,
which are distinct from the state overall. To be consistent with this
specific concern, it is recommended that section 3.37.040(f)(A),(B) and (C)
be modified to reflect employment statistics and sales tax returns for the
San Francisco Bay Area, not for the entire state of California. (Ordinance
p4)
• To maintain local control and discretion, it is strongly recommended that
section 3.37.040(g) be modified such that if any of the conditions in
subparagraphs (A)(B) or (C) are met, the city council may make a
determination to suspend the minimum wage. (Ordinance p5)
Recommendation for implementation:
The proposed ordinance states the increase be implemented as follows:
Jan 1, 2017
Jan 1, 2018
Jan 1, 2019
$12.00
$13.50
$15.00
Chamber would like to recommend the following schedule:
Jan 1, 2017
Jan 1, 2018
Jan 1, 2019
$11.00
$13.00
$15.00
The Cupertino Chamber of Commerce appreciates the long working partnership
it has with the city, and local businesses both large and small. We strongly
encourage the city council to adopt the recommended proposed changes so that
we may help the smallest and most vulnerable businesses in our community.
Sincerely
Anjali Kausar
C.E.O.
Cupertino Chamber of Commerce