San Diego, California, Minimum Wage Increase Veto Referendum, Proposition I (June 2016)

• Overview
  • Minimum wage schedule
  • Sick leave
  • State minimum wage
• Support
• Opposition
• Path to the ballot
  • Lawsuit
• Recent news
• References
• More
  • Local ballot measures
  • State ballot measures
  • Local politics

Proposition I: San Diego Minimum Wage Increase Veto Referendum
The basics
Election date:
June 7, 2016
Status:
a Approved
Topic:
Local wages and pay
Related articles
Local wages and pay on the ballot June 7, 2016 ballot measures in California San Diego County, California ballot measures Using local measures to advance national agendas Municipal elections in San Diego, California (2016)
See also
San Diego, California

A City of San Diego Minimum Wage Increase Veto Referendum ballot question was on the ballot for San Diego voters in San Diego County, California, on June 7, 2016. It was approved.

A "yes" vote was a vote in favor of approving the city council's minimum wage increase ordinance approved in 2014, thereby increasing the city's minimum wage to $11.50 per hour by January 2017.

A "no" vote was a vote against the minimum wage increase.

This measure was designed to allow voters to decide whether to keep or reject the city council's minimum wage increase ordinance — known as the Earned Sick Leave-Minimum Wage Ordinance — that was approved in 2014. Proposition I took effect on July 11, 2016, boosting the city's minimum wage to $10.50 per hour. The next minimum wage increase was scheduled for January 2017, when the city's minimum wage increased to $11.50 per hour.

Senate Bill 3, approved by the California State Legislature in March 2016, was designed to increase the state's minimum wage to $10.50 in 2017, $11 in 2018, and by a dollar a year after that until it reached $15 per hour in 2022, making the minimum wage increase provisions of Proposition I largely irrelevant after 2019 since they would be superseded by the higher minimum wage dictated by SB 3.

Seven of the other eight measures San Diego voters decided on June 7, 2016, (Propositions A through G) were recommended by the San Diego Charter Review Committee. Electors also voted on Proposition H, which was put on the ballot by the city council upon the recommendation of the city council's Infrastructure Committee and was designed to create a restricted fund for the city's capital improvements and maintenance. All eight local measures on the ballot on June 7, 2016, besides Proposition I were approved.

City voters also saw Proposition 50, a statewide ballot measure concerning the suspension of state legislators on the primary election ballot. Prop. 50 was approved.

Election results

San Diego, Measure I
Result		Votes	Percentage
a Yes		193,300	63.84%
No		109,500	36.16%

Election results from San Diego County Elections Office

Overview

Minimum wage schedule

The ordinance was designed to set wages to increase according to the following schedule:

• $9.75 per hour on January 1, 2015
• $10.50 per hour on January 1, 2016
• $11.50 per hour on January 1, 2017
• wage attached to inflation beginning on January 1, 2019

Sick leave

The ordinance was also written to guarantee the opportunity to earn at least five days of sick leave for most employees.

State minimum wage

See also: California "Fair Wage Act of 2016" $15 Minimum Wage Initiative (2016)

Petitioners submitted signatures for a state minimum wage initiative, which was called "The Fair Wage Act of 2016" and was designed to increase the statewide minimum to $15 per hour. Moreover, in March 2016, the California State Legislature approved Senate Bill 3, which was designed to increase the state's minimum wage at most businesses to $15 per hour by 2022. Thus, the state minimum wage could supersede this local minimum wage increase, making it superfluous. Proponents of the minimum wage initiative withdrew their proposal after the enactment of SB 3.

Council approval, mayoral veto and, referendum petition

After original council approval, a veto from the mayor and council re-approval, this referendum was put before voters by a signature petition drive organized by the San Diego Small Business Coalition and backed by the San Diego Regional Chamber of Commerce.

Delayed enactment

Because opponents of the measure were able to collect the requisite 33,866 valid signatures in fewer than 30 days after the ordinance was finally approved by the city council in 2014, the ordinance could not take effect until it was approved by voters. Thus, workers did not receive a city-imposed wage increase on January 1, 2015, as scheduled. Since voters approved the referendum in June 2016, the minimum wage jumped to $10.50 per hour on July 11, 2016, and the schedule outlined above resumed.

Wage Hike Not Retroactive

According to City Attorney Jan Goldsmith, the minimum wage hike that was origionally set to become effective on January 1, 2015, was not retroactive after voters approved Proposition I on June 7, 2016. This decision by Goldsmith alleviated the concerns of some employers concerning the 18 months of back pay that they would have been responsible for if the wage hike was retroactive. But since the referendum petition suspended the law, no such back pay was required.

Supporters of the minimum wage hike were also concerned that if the measure was retroactive, it would have made the wage hike a harder sell to voters on election day because of the added strain on businesses. Concerning a retroactive wage hike and the effect it would have had on voter approval, Carl Luna, a political science professor at Mesa College, said, "It would have been a killer. Now it will just come down to the pure ideological and economic arguments.”

Direct cost to the city

The city's official fiscal impact statement concerning this minimum wage ordinance estimated the direct costs to the city to be about $400,000 per year for administration and enforcement. The impact statement also estimated that the city's payroll costs would go up by $150,000 in 2017 and by $200,000 in 2018, with the annual payroll cost fluctuating according to inflation after 2019.

Text of measure

Ballot question

The following question appeared on the ballot:

“

REFERENDUM OF ORDINANCE REGARDING EARNED SICK LEAVE AND MINIMUM WAGE. Shall Ordinance O-20390 be approved, establishing that employers are to compensate employees working in the City of San Diego with earned sick leave of up to forty hours a year and a minimum wage of $10.50 an hour upon the Ordinance’s effective date, $11.50 an hour on January 1, 2017, and increasing with the cost of living on January 1, 2019 and annually thereafter?

”

Impartial analysis

The following impartial analysis of Proposition I was prepared by the office of the San Diego City Attorney:

“

The City of San Diego Earned Sick Leave and Minimum Wage Ordinance (the Ordinance) applies to specified employers and employees in the geographic boundaries of the City. If approved, the Ordinance would require employers to compensate employees with paid leave for certain purposes and a local minimum wage. The City Council approved the Ordinance on August 18, 2014. A referendum petition qualified the measure for the ballot, and the Council voted to place it on the ballot. The Ordinance defines “employers” as any person or persons, including associations, organizations, partnerships, business trusts, limited liability companies, or corporations, who exercise control over the wages, hours, or working conditions of any employee, engage an employee, or permit an employee to work. Employers do not include aged, blind, or disabled people who receive in-home supportive services care, under state law. The Ordinance defines “employee” as any person who, in one or more calendar weeks of the year, performs at least two hours of work within the geographic boundaries of the City for an employer, and who qualifies for the payment of minimum wage under the State of California minimum wage law. Employees do not include independent contractors as defined by the California Labor Code, or people who have been issued a special license by the state to be employed at less than minimum wage, certain youth employees in publicly subsidized summer or short-term employment programs, and certain counselors at organized, outdoor camps. If approved, employees would be paid a minimum wage of $10.50 an hour upon the Ordinance’s effective date, following voter approval. Starting January 1, 2017, the minimum wage would be $11.50 an hour. Starting January 1, 2019, the minimum wage would increase by an amount corresponding to the prior year’s increase, if any, in the cost of living, as defined by the Consumer Price Index. Employees would receive one hour of paid, earned sick leave for every thirty hours worked, at the same hourly rate or other measure of compensation that the employee earns. Earned sick leave would begin to accrue when employment starts. There would be a 90-day waiting period before an employee could use the leave. Employers may limit use of the leave to forty hours in a twelve-month period, but accrual cannot be capped and unused leave must be carried over. Upon an employee’s separation, employers would not have to pay unused leave, but must maintain it for six months if the employee returns. Leave could be used if an employee is physically or mentally unable to work due to illness, injury, or a medical condition; for “Safe Time” (time away from work necessary to handle certain matters related to domestic violence, sexual assault, or stalking, when the employee or a specified family member is a victim); for medical appointments; and to care for or assist certain family members with an illness, injury, or medical condition. Employers would post notices, maintain records, and be subject to civil penalties for violations. The City would establish an enforcement office.

”

Support

Note: Those who supported the minimum wage ordinance and disapproved of the veto referendum effort against it are referred to as "supporters" in this article.

Supporters

All six of the Democrats on the city council voted to approve the ordinance and override the mayor's veto. The most outspoken supporter of a minimum wage increase on the city council was Council President Todd Gloria, who originally introduced the measure.

A group called Raise Up San Diego, which was in favor of an even higher minimum wage, supported this ordinance as a step in the right direction.

Arguments in favor

Council President Gloria said, "Through the passage of this ordinance, this council is standing up and demonstrating that we value honest work and fair pay."

Responding to the mayor's veto of the measure, Gloria said, "When 38 percent of San Diego workers don't earn enough to make ends meet, something must be done. That is why the mayor's veto of this reasonable, common sense measure is disappointing."

Gloria, who originally proposed a minimum wage hike to $13.09 per hour, said, "The San Diego proposal would have a major, positive economic impact for workers and their families and on the San Diego economy. To those who fear losing their businesses, please remember that these additional wages will be spent by workers on necessities like food and services -- it will go right back into San Diego's economy."

Rabbi Laurie Coskey, a member of Raise Up San Diego, was confident voters would approve the minimum wage ordinance. She said, "Dr. Martin Luther King taught us that the arc of the moral universe is long, but that it bends towards justice. When the Sick Leave-Minimum Wage Law goes into effect, WHEN, not IF, will [sic] help lift up more than 200,000 San Diegans who are struggling to make ends meet on poverty wages."

Opposition

Note: Those who opposed the minimum wage ordinance and approved of the veto referendum effort against it are referred to as "opponents" in this article.

Opponents

A group called the San Diego Small Business Coalition, backed by the San Diego Regional Chamber of Commerce, was behind the signature petition campaign to put this ordinance before voters, giving them a chance to overturn it.

Mayor Kevin Faulconer was opposed to the ordinance and vetoed it when the council first approved the measure.

Former mayor and CEO of the city's chamber of commerce Jerry Sanders also expressed opposition to the measure.

Arguments against

When the measure was approved, Mayor Faulconer said, "As mayor, my job is to cultivate an atmosphere that creates economic opportunities and good-paying jobs for all San Diegans. This ordinance puts our job growth in jeopardy and will lead to higher prices and layoffs for San Diego families. I will veto this ordinance because we should be looking for ways to create more jobs, not putting up roadblocks to opportunities."

San Diego Regional Chamber of Commerce CEO Jerry Sanders praised the mayor's decision. Sanders said, "Mayor Faulconer showed strong leadership in making this decision that protects the San Diego economy, particularly our small businesses and jobs." He continued, "An increase in the minimum wage of this magnitude would be detrimental to San Diego jobs, the economy and small businesses and would put our city at a competitive disadvantage as compared to nearby cities not affected by such an increase."

Campaign finance

Opponents of the minimum wage hike spent about $545,000 on the veto referendum signature petition campaign in 2014 to get the ordinance on the ballot.

Path to the ballot

See also: Laws governing local ballot measures in California

Voting on Minimum Wage
Ballot Measures
By state
By year
Not on ballot
Local Labor and unions Local wages and pay

City council approval and mayoral veto

On July 28, 2014, the six Democrats on the San Diego City Council voted to directly approve this minimum wage increase ordinance, which was originally proposed as a ballot measure for voters to decide. After approval by the city council, the bill was vetoed by Mayor Kevin Faulconer on August 8, 2014. The city council voted to override the mayor's veto on August 19, 2014, however.

Veto referendum petition

After the minimum wage ordinance was given final approval, a group called the San Diego Small Business Coalition began a signature gathering campaign to put a referendum question on the minimum wage increase before voters. Minimum wage increase opponents had 30 days from the final approval of the ordinance to collect valid signatures equal to 5 percent of the city residents registered to vote in the last general city election — a number amounting to 33,866. The group turned in 56,103 signatures — 42,960 of which were found to be valid — within the time allowed. This prevented the ordinance from taking effect until approved by voters. On October 20, 2014, the council voted to put the referendum before voters, and on February 8, 2016, the city council confirmed the measure for the June 7 election ballot in 2016.

Polls

A poll conducted by Center on Policy Initiatives found that about 63 percent of voters support the minimum wage increase targeted by this referendum. Moreover, 47 percent of those surveyed said they strongly supported the ordinance, while 24 percent were strongly opposed to it.

Other elections

See also: Municipal elections in San Diego, California (2016)

Voters also decided between Republican-affiliated incumbent Mayor Kevin Faulconer and his two Democratic-affiliated opponents, Ed Harris and Lori Saldaña at the election on June 7, 2016. Five city council seats were also up for election on June 7, 2016, with two out of the five incumbents running for re-election. Incumbents Mark Kersey and Scott Sherman in Districts 5 and 7 faced two challengers each, while voters in districts 1, 3, and 9 decided between newcomers. All three incumbents, Faulconer, Kersey, and Sherman, won re-election. The races for council members representing districts 1 and 9 advanced to a runoff election in November.

While the June election was called a primary, it was functionally a general election. Only races where no candidate won a majority (50 percent plus one) of the votes cast in the primary advanced to the election on November 8, 2016. The November election was called a general election, but it was functionally a runoff election. This election system, which the city first used in 1989, has been challenged by local voters, who are planning a ballot initiative to change the system.

Related measures

2016

Statwide

• California "Fair Wage Act of 2016" $15 Minimum Wage Initiative (2016) - Not on the ballot

Other local measures

• Washington, D.C., Minimum Wage Initiative - Washington, D.C.
• Cincinnati Minimum Wage Increase Initiative - Ohio
• Proposition E: San Francisco Paid Sick Leave Changes - California a
• Measure B: Riverside, California, Increasing City Council Member Salary - California d
• Los Angeles $15 per Hour Minimum Wage Initiative - California
• Earned Sick Time: Cook County - Illinois a

2015 local measures

• Kansas City, Missouri, $15 per hour Minimum Wage Initiative Measure (November 2015) 
• City of El Paso Fire Department Wage Raise Policy Charter Amendment, Proposition 2 (May 2015) a
• Kansas City, Missouri, Minimum Wage Increase Veto Referendum (November 2015) 
• Portland, Maine, Minimum Wage Increase Initiative, Question 1 (November 2015) d
• City of Tacoma $12 per Hour Minimum Wage Alternative Measure, Initiative No. 1B (November 2015) a
• City of Tacoma $15 per Hour Minimum Wage Measure, Initiative No. 1 (November 2015) a

2013 and 2014

Show more

Local

a City of Oakland Minimum Wage Increase Initiative, Measure FF (November 2014)
a City of San Francisco Minimum Wage Increase Referred Measure, Proposition J (November 2014)
d City of Eureka "Fair Wage Act" Minimum Wage Initiative, Measure R (November 2014)
a Raise Wisconsin minimum wage increase advisory referendums
City of San Diego $12 per Hour Minimum Wage Initiative (November 2014)
City of San Diego $13.09 per Hour Minimum Wage Measure (November 2014)
City of Las Cruces Minimum Wage Increase Initiative (November 2014)
Washington D.C. Minimum Wage Initiative (November 2014)
City of Seattle $15 Per Hour Minimum Wage Increase Veto Referendum (November 2014)
City of Seattle $15 Per Hour Minimum Wage Initiative (November 2014)
City of San Francisco Minimum Wage Act of 2014 Initiative (November 2014)
a Philadelphia Minimum Wage Ordinance, Proposition 1 (May 2014)
a City of Chicago $15 Per Hour Minimum Wage Referendum (March 2014)
a SeaTac "Good Jobs Initiative", Proposition 1 (November 2013)
City of Richmond Minimum Wage Increase Ballot Question (November 2014)

Statewide

a Alaska Minimum Wage Increase, Ballot Measure 3 (2014)
a Arkansas Minimum Wage Initiative (2014)
a South Dakota Increased Minimum Wage, Initiated Measure 18 (2014)
California Minimum Wage Supplement for Home Health Workers (2014)
Idaho Minimum Wage Initiative (2014)
Massachusetts Minimum Wage Increase Initiative (2014)
Michigan Minimum Wage Initiative (2014)
Missouri Minimum Wage Initiative (2014)
New Mexico Minimum Wage Amendment (2014)

See also

Local measures

• Local measures in 2016
• Local wages and pay on the ballot

• San Diego County measures

California

• June 7, 2016 measures in California
• Local ballot measures, California
• San Diego, California

• Municipal elections in San Diego, California (2016)

News and analysis

• State and local preemption conflicts
• Measures advancing national agendas

External links

Suggest a link

• San Diego County Elections Office website

Additional reading

• U-T San Diego, "... And the bad Councilman Todd Gloria," January 18, 2015