For employees of nonprofit organizations under a contract with the City the MCO hourly gross compensation is currently $17.90 per hour as of July 1 2023. For employees of public entities under a contract with the City the MCO hourly gross compensation is currently $19.25 per hour as of July 1 2023.

The ordinance amends the Administrative Code to increase the minimum hourly compensation rate for employees of nonprofit City contractors incrementally to $23.00 per hour by January 1, 2026, with annual increases every July thereafter based on increases in the Consumer Price Index; and to increase the minimum hourly compensation rate for employees of public entity City contractors incrementally to $25.50 per hour by January 1, 2027, with annual increases every July thereafter based on increases in the regional Consumer Price Index for certain workers.

The increases in hourly gross compensation and Consumer Price Index increases specified will go into effect only if the City appropriates funds for the increases and the Controller certifies that such funds are sufficient to pay for the increased hourly gross compensation.

The ordinance aims to modify the exemption for employees participating in after-school or summer programs to apply only when the employee does not replace, displace or lower the wage or benefits of any existing position or Employee.

This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the ordinance unsigned, does not sign the ordinance within ten days of receiving it, or the Board of Supervisors overrides the Mayor’s veto of the ordinance.

The Controller has to certify that the appropriated funds are sufficient to support the increases. If the appropriated funds are only sufficient for a proportion of the increased amount, then the compensation rate shall increase by that proportion only.