Living Wage for City of Hayward Service Contracts

The City of Hayward has implemented a Living Wage Ordinance. The living wage rates for contracts subject to the Ordinance, effective July 1, 2021, are as follows:

Required Wage per hour, with health benefits$15.55
Required Wage per hour, without health benefits$17.98
Medical Benefits$2.43

Beginning July 1, 1999, certain types of City of Hayward service contracts or purchase orders in excess of $25,000 for the term of the contractual relationship became subject to the requirements of the City of Hayward Living Wage Ordinance.  These include contracts for vehicle repair and maintenance; building and facility repair and maintenance; janitorial and laundry services; landscape maintenance; security services; and pest control.

At the inception of the ordinance, the ordinance provides that “Service contractors …shall pay their employees a wage of no less than eight dollars ($8.00) per hour, if health benefits are paid to employees or nine dollars and twenty-five cents ($9.25) per hour if no such health benefits are paid.”  Health benefits are defined as “payment of no less than one dollar and twenty-five cents ($1.25) per hour toward the cost of health and medical care insurance for employees and their dependents.”  The Ordinance also places notification responsibilities upon the Contractor and provides certain rights to the Contractor’s employees.

In addition, the Ordinance contains an escalator that states, “The hourly rates contained in this section shall be upwardly adjusted each July 1 to reflect the change in the Bay Area Consumer Price Index for the twelve-month period preceding April 1.”  According to information obtained from the Bureau of Labor Statistics, the Price Index for All Urban Consumers, San Francisco-Oakland-San Jose, increased 1.10% during the period April 2019-April 2020.  The wage rates effective July 1, 2020 reflect this increase.

Please indicate below if you are willing to comply with the terms and conditions that it contains.  If you will comply, the contract or purchase order between your firm and the City will be reviewed and revised to incorporate this requirement.  If you are unwilling to comply, the contract or purchase order will be cancelled.

Form of Compliance

Please complete the form above and return it to stephanie.gutierrez@hayward-ca.gov or fax it to (510) 583-3600 no later than Friday, September 18, 2020. If sent by mail, please direct this to City of Hayward, Attn: Purchasing Division-Living Wage, 777 B Street, Hayward, CA  94541.