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City of Irvine Living Wage Ordinance Required Hourly Rates (Effective July 1, 2014)

The Living Wage Ordinance requires a contractor entering into City contracts that are subject to the ordinance to pay its covered employees an hourly rate, comparable health benefits and paid time off (such as vacation, sick, holiday, and jury duty) as set by the most current City Council Resolution (the Resolution) establishing compensation policy for employees.

The current Resolution sets the minimum hourly rate at $10.82 per hour.This is the rate at which a covered employee must be paid if the contractor also provides the employee with health benefits and paid time off that are equal to or exceed those offered to City employees, as detailed by the Resolution.

An additional “benefit factor” must be added to the above hourly rate if those covered employees are not offered health and paid time off benefits that are equal to or exceed those offered to City employees, as detailed in the current Resolution.The “benefit factor” is based on the City’s cost to provide these benefits to its employees.The current “benefit factor” is set at $2.52 per hour and must be added to the base minimum rate of $10.82 per hour for a total rate of $13.34 per hour.

If benefits are offered by the Contractor but the cost to the Contractor is less than the “benefit factor” rate, the difference between the Contractor’s cost and the current “benefit factor” rate must be added to the base minimum rate to arrive at the total rate of compensation for the covered employees.

The City does not provide health benefits or paid time off for City employees working less than 30 hours per week on average.Accordingly, there is no current requirement for a contractor to pay a “benefit factor” rate for its part-time employees who work less than 30 hours a week on average. Contractors are required to pay these employees the minimum hourly rate of $10.82 per hour.

For additional information, definitions, sample documents, a Living Wage Ordinance Comparable Benefits Summary, related documents and frequently asked questions, please click here to review our Living Wage Guide.

To request a Living Wage Guide be mailed to you, or to obtain prior living wage hourly rates, please contact the Purchasing Department at 949-724-6180.