As part of the city’s plan to implement a $15 minimum wage by 2019, Milpitas’ lowest paid workers saw their hourly pay jump from $10.50 to $11 on July 1. That 4.8 percent wage increase comes ahead of the state’s plan for $15 by 2022 and behind other Bay Area cities who expect to implement the increased minimum wage by next year.
Although some local businesses spoke before the City Council’s March vote about the anticipated negative impacts of accelerating the minimum wage increase, including having to reduce employee hours and pass on increased costs to customers, city staff and the Milpitas Chamber of Commerce have not heard any negative responses in the two weeks since the pay hike took effect.
“Other than general inquires, the city has not received any positive or negative feedback from businesses,” Edesa Bitbadal, the city’s economic development manager, said this week. She added Milpitas had been hosting information meetings for businesses before and after the minimum wage increase was adopted by the council.
On July 1, San Jose, at the forefront of the movement to increase minimum wage in the Bay Area to keep up with skyrocketing rent and the cost of living, increased its minimum wage to $12. San Francisco’s minimum wage went up to $14 on July 1, and will hit $15 next year.
On Monday, Mark Tiernan, Milpitas Chamber of Commerce CEO, reiterated that his organization supported Gov. Jerry Brown’s proposed changes to the minimum wage which give businesses statewide more time to adjust for the increase.
“It was our position that the rule that was adopted by the Milpitas City Council five to nothing really put pressure on our local businesses too soon. We felt it would be better to more gradually phase in the wage increases,” Tiernan said, noting how much employers in the restaurant, retail sector, and small and large businesses pay their employees is done responsibly. “And that with the cost of living continuing to go up, specifically housing, it’s important that people earn an increase in their salaries if they are being paid at the minimum wage level.”
Tiernan said it was too early to say if the bump to an $11 minimum wage has affected Milpitas businesses. However, he noted the chamber would monitor the situation and will survey its members in the next six months to see how they are being impacted, if at all.
Milpitas residents sounded off on the Milpitas Post Facebook page — both in favor and against the minimum wage increase. Those in favor say $11 was still not enough to afford living in the Bay Area, while those against argued minimum wage is meant to be a starting point in a career and noted increasing it would hurt small businesses.
“I get the earning your wage mentality. I’m someone who started at an entry-level position right out of high school and I’ve worked my way up to a much higher income along with schooling,” Sadie Elizabeth posted. “With that being said, can anyone afford any form of rent — even just a bedroom, on $11 an hour then factor in basic insurance, food and God forbid a car payment? It’s sad how unaffordable my hometown has become.”
“Minimum wage for the most part is supposed to be a starting point in your working career. Not your life,” Ron L Johnson posted.
Ed Riffle added, “Let’s make it $100 an hour. No… $200 an hour. There would be a line 20 miles long to get a job in Milpitas… and zero jobs.”
On Monday, Mayor Rich Tran said he was happy with the acceleration of the minimum wage. He added that he had not heard of any negative affects from businesses or workers about limiting business hours or increased costs to customers.
“Our city economy is booming and I’m confident most business owners are seeing wide-eyed profits,” Tran said, pointing to the anticipated $25.5 million in sales tax revenue in the 2017-18 fiscal year, which also began July 1. He said people who work 40 hours a week deserved to make a living wage that allowed them to meet their basic needs.
“Let’s continue to make sure our low-income community is paid a living wage,” Tran added.
On April 28, the city published bulletins in the three most spoken languages in the city for businesses to post informing employees about the current minimum wage and their rights under the minimum wage ordinance, Bitbadal said.
She noted the city also created a website dedicated to sharing information about the minimum wage in Milpitas, along with the hotline number and email for general questions and employee-driven complaints. Bitbadal said when the city’s minimum wage increases to $12 on Jan. 1, 2018 the city will again hold meetings to inform businesses and put out literature to inform employees of their rights under the city’s minimum wage law.
For more information about the city’s minimum wage law or to provide complaints to the city, call (408) 586-3058 or visit http://www.ci.milpitas.ca.gov/milpitas/departments/economic-development/minimum-wage/.