Campaign for City Funding for MCO Wage Increase for Non-profits

The MCO Nonprofit Working Group issued a recommendation on April 1, 2019, that nonprofits be funded for direct costs of increasing the minimum rate to $16.50 per hour and for wage compaction of increasing wages by $1 per hour up to $30 per hour. The Working Group recommended that nonprofits be funded for wage equity, to raise wages of non-City contract employees by $1 per hour up to $30 per hour. The Working Group in its recommendation included an additional 25 percent for indirect cost factors such as employer-paid taxes and benefits. The Controller’s Office allocated funding to raise the minimum rate to $16.50 per hour, increase wages by $1 per hour for those earning between $16.50 and $18.50 per hour, and $0.75 per hour for those earning between $18.50 and $22.50. Those non-profits without employees earning less than $16.50 per hour only received funding to raise wages by $1 per hour for those employees earning between $16.50 and $18.50. The Controller allocated an additional 20 percent for indirect and fringe costs. The Controller did not allocate funding for wage equity for non-City contract employees.

The Minimum Compensation Ordinance wage rate will increase with the Consumer Price Index on July 1, 2020, by $0.55 per hour to $17.05 per hour, only if the City appropriates funds for the increases and the Controller certifies that such funds are sufficient to pay for the increase.