At the meeting on Monday, Sept. 26, the City Council unanimously approved raising the minimum wage to $15 per hour by 2019 to bring Palo Alto in alignment with other cities in Santa Clara County. The Council followed the recommendation by the Cities Association of Santa Clara County that called for the increase to be phased in, in a three-step process over three years.
The increases will be as follows:
• $12 on 1/1/2017
• $13.50 on 1/1/2018
• $15 on 1/1/2019
Included in the recommendation is a Consumer Price Index (CPI) increase after 2019 indexed to the Bay Area CPI, with a five percent cap and no exemptions.
The City's current minimum wage of $11 per hour wasn’t set to increase to $15 per hour until 2025. The state minimum wage is currently $10 per hour and will increase to $10.50 on Jan. 1, 2017.