The San Jose City Council on Tuesday voted to raise its minimum wage to $15 per hour by 2019 as part of a regional effort to ensure more Silicon Valley residents benefit from the growing economy.
“Raising the minimum wage will provide a significant boost for the thousands of hardworking families in our community who are struggling to keep up with the extraordinarily high cost of living in Silicon Valley,” Mayor Sam Liccardo said in a news release. “By moving forward together with many of our neighboring cities, even more residents will benefit from a higher wage and we will create a more level playing field for businesses throughout the region.”
The vote culminated an effort by Liccardo to forge a regional approach to raising the minimum wage throughout Silicon Valley, the release said.
San Jose's minimum wage increase will come in three phases: a hike to $12 pr hour in 2017, to $13.50 in 2018 and to $15 by January 2019, with annual cost of living increases every San Jose joined a number of other Santa Clara County cities who have targeted a $15 minimum wage. Cupertino, Los Altos, Mountain View, Palo Alto and Sunnyvale have adopted ordinances to reach $15 plateau by 2019.
Campbell, Milpitas, Santa Clara and Saratoga are expected to consider minimum wage proposals in the next few months.
According to the economic analysis commissioned by the city, raising the minimum wage to $15 by 2019 will generate an average pay increase of $3,000 for 115,000 workers, or 31 percent of the workforce, the release said.