§ 12P.3. MINIMUM COMPENSATION COMPONENTS.

(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:.1

(i) Beginning on November 3, 2018 or the effective date of the ordinance in Board File No. 170297, whichever is later,,1 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 $16.50 as of July 1, 2019. In order to prevent inflation from eroding the value of this rate, on July 1, 2020, and 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.

(C) For Contracts and Contract Amendments with public entities, hourly gross compensation shall be $16.00 as of February 1, 2019, $16.50 as of July 1, 2019, $17.50 as of July 1, 2020, $18.00 as of July 1, 2021, and $18.75 as of July 1, 2022. In order to prevent inflation from eroding the value of this rate, on July 1, 2023, and annually thereafter on July 1, the hourly gross compensation rate shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index.

(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 12P.4 of this Chapter 12P, 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 12P.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 12P.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.

(e) The Controller shall convene a Working Group to consider and advise the Board of Supervisors and the Mayor.

(1) The Working Group shall consider and advise on methods to address anticipated issues that would result from an increase in the hourly compensation rate for employees under contracts with Nonprofit Corporations, including but not limited to:

(A) Wage equity: the inequity that occurs when workers funded by a City contract receive a higher wage than other workers who are performing the same work but are funded by non-City contracts; and

(B) Wage compaction: the inequity that occurs when the difference between wage levels is reduced because one worker funded by a City contract receives an increased wage while other workers do not.

(2) The Working Group shall be subject to the following requirements:

(A) Members. The Working Group shall be comprised of the following members:

(i) The Controller of the City and County of San Francisco, or the Controller’s designee (“Controller”);

(ii) One representative from the Human Services Agency, designated by the Executive Director;

(iii) One representative from the Department of Public Health, designated by the Director of Health;

(iv) Three workers who are employees of different Nonprofit Corporations that are subject to the Minimum Compensation Ordinance, designated by the Controller;

(v) One staff representative from the San Francisco Labor Council, designated by the Controller;

(vi) One staff representative from the Service Employees International Union 1021, designated by the Controller;

(vii) Two executives (chief executive officer, chief operating officer, chief finance officer, or other member of the management team) of different Nonprofit Corporations that are subject to the Minimum Compensation Ordinance, designated by the Controller.

(B) Meetings. The Working Group shall meet as necessary between the effective date of the ordinance in Board of Supervisors File No. 170538, creating this subsection (e), and April 1, 2019. The Working Group may begin meeting once six members have been designated.

(C) Report. The Working Group shall prepare a report on matters within the scope of subsection (e)(1) for submission to the Board of Supervisors and the Mayor no later than April 1, 2019.

(3) Expiration. This subsection (e), and hence the Working Group, shall expire by operation of law on May 1, 2019. After that date, the City Attorney shall cause this subsection (e) to be removed from the Administrative Code.

(Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07, File No. 070921, App. 9/14/2007; amended by Ord. , File No. 170297, App. 10/12/2018, Eff. 11/12/2018; Ord. , File No. 170538, App. 11/7/2018, Eff. 12/8/2018)

CODIFICATION NOTE

1. So in Ord. .