(a) Minimum Compensation shall consist of the following:
(1) (A) For Contracts and Contract Amendments with parties other than Nonprofit Corporations or public entities, hourly gross compensation shall be as follows:
(i) Beginning on November 3, 2018 or the effective date of the ordinance in Board File No. 170297, whichever is later, an hourly gross compensation of $17.00.
(ii) In order to prevent inflation from eroding the value of this rate, on July 1, 2019, the the1 hourly gross compensation rate shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index. Annually thereafter on July 1, the hourly gross compensation in effect for the prior calendar year shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index.
(B) For Contracts and Contract Amendments with Nonprofit Corporations, hourly gross compensation shall be $18.93 as of July 1, 2023, $20.25 as of July 1, 2024, $21.55 as of July 1, 2025, $23.00 as of January 1, 2026, and annually thereafter on July 1, the hourly gross compensation in effect for the prior fiscal year shall increase by an amount corresponding to the prior calendar year’s increase, if any, in the Consumer Price Index. For the purpose of the annual adjustment on July 1, 2026, the gross compensation rate in effect for the prior fiscal year shall be $23.00.
(C) For Contracts and Contract Amendments with public entities, hourly gross compensation shall be $19.25 as of July 1, 2023, $20.25 as of September 1, 2023, $20.75 as of January 1, 2024, $21.50 as of July 1, 2024, $22.00 as of January 1, 2025, $22.50 as of July 1, 2025, $23.00 as of January 1, 2026, $25.00 as of September 1, 2026, $25.50 as of January 1, 2027, and annually thereafter on July 1, the hourly gross compensation rate in effect for the prior fiscal year shall increase by an amount corresponding to the prior calendar year’s increase, if any, in the Consumer Price Index for urban wage earners and clerical workers for the San Francisco-Oakland-Hayward metropolitan statistical area. For the purpose of the annual adjustment on July 1, 2027, the gross compensation rate in effect for the prior fiscal year shall be $25.00..2
(D) The increases in hourly gross compensation, and Consumer Price Index increases, specified in subsections (a)(1)(B)-(C), shall go into effect only if the City appropriates funds for the increases under the fiscal and budgetary provisions of the Charter, and the Controller certifies that such funds are sufficient to pay for the increased hourly gross compensation. If the Controller certifies that the appropriated funds are sufficient to support a proportion of the increased hourly gross compensation rate and Consumer Price Index increase, then the hourly gross compensation rate shall increase by that proportion only.
(E) For Contracts and Contract Amendments covered by Section 111.4 of this Article 111, hourly gross compensation shall be, as of November 3, 2018 or the effective date of the ordinance in Board File No. 170297, whichever is later, $17.00. In order to prevent inflation from eroding the value of this rate, on July 1, 2019, the hourly gross compensation rate shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index. Annually thereafter on July 1, the hourly gross compensation in effect for the prior calendar year shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index.
(2) Compensated time off (at the compensation rates specified in subsection (a)(1) of this Section 111.3) in an hourly amount that, on an annualized basis for a full-time employee, equals twelve days per year. Such time off shall vest with the Covered Employee at the end of the applicable Pay Period and may be used, for sick leave, vacation or personal necessity. Notwithstanding the foregoing, if a Contractor reasonably determines, in good faith, that the Contractor cannot comply with this requirement for compensated time off, the Contractor shall provide the Covered Employee with a cash equivalent of such compensated time off.
(3) Uncompensated time off in an hourly amount that, on an annualized basis for a full-time employee, equals ten days per year. Such time off shall vest with the Covered Employee at the end of the applicable Pay Period and may be used, at the option of the Covered Employee, for sick leave for the illness of the Covered Employee or such Covered Employee’s spouse, domestic partner, child, parent, sibling, grandparent or grandchild.
(b) By March 1 of each year, the Agency shall make available at its office and on its website the hourly rates required by this Section 111.3.
(c) When preparing proposed budgets and requests for supplemental appropriations for contract services, City departments that regularly enter into agreements for the provision of services by Nonprofit Corporations shall transmit with their proposal a written confirmation that the department has considered in its calculations the costs that the Nonprofit Corporations calculate that they will incur in complying with the Minimum Compensation Ordinance.
(d) Subject to the budgetary and fiscal provisions of the Charter, it shall be the policy of the City to ensure sufficient funding to prevent a reduction in the services to the community provided by Nonprofit Corporations and public entities.
(Added as Administrative Code Sec. 12P.3 by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07, File No. 070921, App. 9/14/2007; amended by Ord. 232-18, File No. 170297, App. 10/12/2018, Eff. 11/12/2018; Ord. 266-18, File No. 170538, App. 11/7/2018, Eff. 12/8/2018; Ord. 163-23, File No. 230646, App. 7/28/2023, Eff. 8/28/2023, Retro. 7/1/2023; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
CODIFICATION NOTES
1. So in Ord. 232-18.
2. So in Ord. 163-23.