Minimum Wage

Minimum Wage and Morgan Hill
For employees and businesses in Morgan Hill there is no local ordinance for minimum wage.  Minimum wage in Morgan Hill is based upon the State of California minimum wage: Minimum Wage Information

Historical Information
Throughout the South Bay and beyond, cities are taking steps to initiate new local minimum wages, which would reach $15 an hour by 2018. The City of Morgan Hill was studying the possibility of a local minimum wage ordinance as well.

The City of Morgan Hill reached out to the local business community and individuals living and/or working in Morgan Hill to gather input on potential minimum wage considerations important to the community. Two forums were held to publicly discuss minimum wage issues and concerns with local business owners and the broader community. 

Notes from Community Forum (PDF)
Notes from Business Forum (PDF)

Concurrently, the City also invited all individuals who live or work in Morgan Hill to participate in an online survey from November 9 to December 4, 2015, to solicit feedback about the subject. 

Minimum Wage Survey Results (PDF)
Minimum Wage Survey Results - Comments (PDF)

Thank you to all who participated in this informative process. Over 600 participants provided meaningful information to help inform City Council. Your feedback and input is important to us. Results of the outreach and engagement process was reported to City Council at the December 16, 2015 Council Meeting.

At the March 2, 2016, Council meeting staff presented an update on the regional efforts taking place as well as an update on a study commissioned by the City of San Jose to analyze the impact of a regional minimum wage.  Direction from Council was to draft an ordinance calling for the California Minimum Wage be inflated using the National Consumer Price Index.  Staff will be coming back to Council in the Mid-Spring 2016.

May 2016 Update
At the May 18, 2016, City Council meeting staff will provide an update on the regional efforts on minimum wage as well as share findings from a recent regional study commissioned by the City of San Jose on the impact of raising the minimum wage. Council directed staff to return with an ordinance to increase the State of California minimum wage by the National Consumer Price Index annually.  Staff is recommending not to move forward with an local ordinance based upon the recent signing of SB 3 Minimum Wage which will increase the State Minimum Wage over the next few years. 

The Council report and attachments can be found here:

Institute for Research of Labor and Employment Report on increasing the minimum wage in Santa Clara County (PDF)
BW Research-Santa Clara County Business Survey findings on increasing minimum wage (PDF)

June 2016 Update
At the May 18, 2016, City Council advised Mayor Tate, Morgan Hill's local representative to the Cities Association of Santa Clara County to support a regional approach to minimum wage. At the June 6, 2016, Cities Association meeting, the board approved a recommendation to implement a Santa Clara County minimum wage phased as follows:
1/1/2017 $12.00/hr
1/1/2018 $13.50/hr
1/1/2019 $15.00/hr

Page 4 of the minutes from the Cities Association meeting can be accessed at the Cities Association website which outlines in detail the approved recommendation for a regional minimum wage.

July 2016 Update
Based upon the Cities Association recommendation for a regional minimum wage, Morgan Hill staff are seeking clarifying direction from City Council on adopting a minimum wage ordinance (PDF) based upon the Cities Association recommendation. It is anticipated that City Council will discuss the direction on a local minimum wage at the August 24, 2016, City Council meeting at 7:00 p.m.

August 2016 Update

At the August 24th Council meeting, City Council accepted staff's report on the minimum wage.  Council did not provide any direction to staff for follow up at the meeting. Therefore, the City of Morgan Hill will not be moving forward with a regional approach to minimum wage at the present time.