REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Marissa Sur, Assistant City Manager
PREPARED BY: Veronica Navarro-Martinez, Human Resources Manager
Subject:
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Adopt Resolution No. 2026-43 modifying the pay schedule for Part-Time, Non-Permanent and Non-Classified Employees to comport with the State minimum wage increase effective January 1, 2027
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Statement of Issue:
The State of California Minimum Wage will increase from $16.90 to $17.40 per hour effective January 1, 2027. In order for the City to comply with the State minimum wage change, the pay schedule for part-time/hourly/non-permanent and non-classified employees requires modification.
Financial Impact:
The estimated Fiscal Year 2026/2027 fiscal impact is $56,204; there are sufficient funds to implement this increase without requesting appropriation. The ongoing estimated annual cost is $112,408 to address the financial impact associated with State minimum wage and requisite adjustments to the City’s part-time pay schedule.
Recommended Action:
recommendation
Adopt Resolution No. 2026-43, “A Resolution of the City Council of the City of Huntington Beach Approving the Pay Schedule for Part-Time, Non-Permanent and Non-Classified Employees Effective January 1, 2027,” and authorize the City Manager or designee to take all administrative and budgetary actions necessary to implement the revised pay schedule.
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Alternative Action(s):
Do not approve recommended action and direct staff accordingly.
Analysis:
Labor Code section 1182.12(c) requires the Director of the California Department of Finance to annually calculate an adjusted minimum wage on or before August 1 of each year. The calculation of the adjusted minimum wage must be the lesser of 3.5% or the rate of change for the US Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) and uses a 12-month measurement period of July 1 to June 30. As of August 1, 2026, U.S. CPI-W increased by 2.99% resulting in the State of California Minimum Wage increasing from $16.90 to $17.40 per hour effective January 1, 2027.
Since the City’s part-time pay schedule includes starting pay below the 2027 minimum wage, the City is required to modify its pay schedule to comply with the law by the January 1, 2027, implementation date. The proposed Resolution No. 2026-43 approves adjustments to the pay-time pay schedule to comply with minimum wage. The updated pay schedule for Part-Time, Non-Permanent and Non-Classified Employees is included as Exhibit A of the Resolution.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2026-43 “A Resolution of the City Council of the City of Huntington Beach Approving the Pay Schedule for Part-Time, Non-Permanent and Non-Classified Employees Effective January 1, 2027”
2. PowerPoint Presentation