Timeline of San Francisco Mandates Passage of San Francisco labor - - PowerPoint PPT Presentation

Timeline of San Francisco Mandates

Equal benefits for domestic partners Card check Prevailing wage revisions Airport quality standards program City contractor living wage; Enforcement

• ffice created

City contractor living health Minimum wage Health spending requirement Paid sick leave Hunter's Point Shipyard community benefits agreement 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Passage of San Francisco labor standards

What happened?

Minimum Compensation in SF, CA, and US

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 SF minimum wage enacted Paid sick leave enacted Health spending requirement* enacted

* Health care spending level shown for a large employer (100+ workers) ** Shows average minimum compensation for a large employer, adjusted to reflect that most employees do not use the maximum amount of paid sick leave, and that employers have alternative behavioral responses to the health spending requirement.

SF minimum compensation** $13.12 CA minimum wage $8.00 US minimum wage $7.25

Real wages fell for the lowest-paid workers in the rest of the Bay Area, but grew in SF

$8.00 $9.00 $10.00 $11.00 $12.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Inflation-adjusted hourly wages for the lowest 10th of Bay Area workers SF minimum wage

10th percentile hourly real wages, 2003-2012 in 2012 dollars Surrounding counties include San Mateo, Santa Clara, and Alameda counties

San Francisco Surrounding counties (weighted average)

Comparisons show that labor standards policies did not affect overall employment.

Minimum wage Paid sick leave Health spending requirement San Francisco Bay Area overall private employment by county

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2001.1 2002.1 2003.1 2004.1 2005.1 2006.1 2007.1 2008.1 2009.1 2010.1 2011.1

San Francisco Surrounding counties (weighted average)

Surrounding counties include San Mateo, Santa Clara, and Alameda counties Indicates recession

The effects of the SFpolicies: surrounding counties make a good comparison group

• Overall employment trends in SF and surrounding counties

are similar—the employment lines are roughly parallel.

• Overall employment in both groups goes down during

recessions and up during expansions.

• Since the SF policies affect only a fraction of the population,

we do not expect differences in overall employment trends.

• Since overall trends before and after the policies were

implemented are similar, the surrounding counties are a good comparison group.

Even at restaurants, employment in San Francisco remained strong relative to surrounding counties.

Minimum wage Paid sick leave Health spending requirement San Francisco Bay Area restaurant employment by county

10,000 20,000 30,000 40,000 50,000 60,000 2001.1 2002.1 2003.1 2004.1 2005.1 2006.1 2007.1 2008.1 2009.1 2010.1 2011.1

San Francisco Surrounding counties (weighted average)

Surrounding counties include San Mateo, Santa Clara, and Alameda counties Indicates recession

Even at restaurants, employment in San Francisco remained strong relative to surrounding counties.

• If we were to see a negative effect on employment, we would

expect to see it at restaurants. Restaurants employ a high share of low-wage workers and so they are most affected by these laws.

• However, we do not see evidence of a decline in restaurant

employment in SF relative to surrounding counties.

• Restaurant employment in both groups is somewhat

seasonal, but generally trends upward.

• Restaurant employment in SF grew slightly faster towards the

end of this period, though this may not be statistically significant.

How was the cost absorbed? Lower turnover

Higher wages increased retention rates of airport, restaurant, and homecare workers

Small price increases

2.8% increase in restaurant prices due to minimum wage

Higher productivity

SFO employers reported improvements in worker performance, morale, absenteeism, grievances, disciplinary issues, and customer service

Lower employer profits?

Workers treat Paid Sick Leave as insurance Of workers with Paid Sick Leave: Only 73% used any sick leave in the previous year Of those who used Paid Sick Leave: Median days taken was 4— less than the maximum of 9 days for workers in large firms or 5 days in small firms

Office of Labor Standards Enforcement

• Dedicated staff and funding
• Thorough, company-wide investigations
• Over $17 million in back wages and $2 million

in penalties collected

How did San Francisco do it?

• Labor-community coalitions
• Ballot initiatives
• District elections

San Francisco’s economy is very similar to other large cities

0% 5% 10% 15% 20% 1990 2000 2010

Professional, Scientific, Management Services

0% 5% 10% 15% 1990 2000 2010

Retail

0% 5% 10% 15% 1990 2000 2010

Information & Communications

0% 5% 10% 15% 1990 2000 2010

Administrative Support Services

0% 5% 10% 15% 1990 2000 2010

Manufacturing

0% 5% 10% 15% 1990 2000 2010

Financial Activities San Francisco 20-city average

0% 5% 10% 15% 1990 2000 2010

Accomodation & Food Services

0% 5% 10% 15% 20% 1990 2000 2010

Health, Education, & Social Services $105,000 $80,000 $93,800 $73,000 $85,100 $60,000 $57,400 $47,000 $45,100 $28,900 $29,400 $22,950 $89,500 $63,000 $46,600 $30,000 Annual wage & salary income San Francisco, 2010 Sector Average: Median: Average: Median: Average: Median: Average: Median: Average: Median: Average: Median: Average: Median: Average: Median:

Financial Activities Information & Communications Professional, Scientific, Management Services Manufacturing Health, Education, & Social Services Administrative Support Services Retail Accommodation & Food Services

San Francisco 20 city average

Employment share by sector, 1990-2010

Sectors correspond as closely as possible to NAICS Source: American Community Survey and Decennial Census

San Francisco’s economy is very similar to other large cities

• While every city has a unique mix of industries, San Francisco

is not hugely different from many other large cities. Moreover, the trends in each sector over the last 20 years are similar in San Francisco and other large central cities.

• For example, while San Francisco has a relatively low share

employed in manufacturing, other cities have been following its lead and have also seen declines in the sector.

• It is not only high-wage sectors where San Francisco is more

concentrated than average. The city also has a higher share in the low-wage hotel and restaurant sector, “Accommodation and Food Services.”

Spreading local labor policies

Airport living wage laws around the country

Spreading local labor policies

Contractor pay-or-play health policy

Contractor pay-or-play health policy

Spreading local labor policies

States with minimum wage higher than federal

Spreading local labor policies

Cities with minimum wage higher than federal…

Spreading local labor policies

…and cities and states with new campaigns underway

Spreading local labor policies

Paid Sick Leave

Spreading local labor policies

Paid Sick Leave campaigns underway