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: Marissa Sur, Assistant City Manager
Subject:
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Adopt Resolution No. 2025-66 modifying the pay schedule for Part-Time, Non-Permanent and Non-Classified Employees to comport with the State minimum wage increase effective January 1, 2026
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Statement of Issue:
The State of California minimum wage law will increase from $16.50 to $16.90 per hour effective January 1, 2026. 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 2025/2026 fiscal impact is $71,908. The ongoing estimated annual cost is $143,875 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. 2025-66, “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, 2026,” 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 adopt Resolution No. 2025-66 and direct staff to find an alternative means of complying with the statewide minimum wage requirement.
Analysis:
The State of California Minimum Wage will increase from $16.50 to $16.90 per hour effective January 1, 2026. The City is required to modify its compensation schedule to comply with the law by the January 1, 2026, implementation date. Employees currently at a pay range starting below $16.90 per hour will need to be increased to a pay range with a minimum equal to $16.90 per hour effective the pay period including January 1, 2026. The part-time pay schedule has been adjusted to assign new ranges on the City’s master schedule to comply with the minimum wage requirements. The updated pay schedule for Part-Time, Non-Permanent and Non-Classified Employees is included as Exhibit A of the Resolution.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2025-66 “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, 2026”