City wage rules linked to federal index

Automatic increases free council from yearly debate


Beginning in 2009, Santa Fe employers of minimum-wage workers will have one more thing to add to their new year's "to do" list: find out how much the city has adjusted the local wage floor.

Wednesday's City Council vote to amend the pay ordinance links future annual increases to a federal inflation index.

City administrators will have to use data from the U.S. Department of Labor each year to re-calculate Santa Fe's minimum wage.

In response to a councilor's question about how notice will be given, City Attorney Frank Katz said it's unlikely the city would be able to individually contact all employers and affected workers.

The city can announce the yearly adjustment via the Internet and through press announcements, he said.

The city manager is likely to present a report each December to the elected governing body that shows the latest minimum-wage information.

That does not mean, however, that the council has discretion over how much pay levels change each year, he said. "It happens automatically," Katz said. "They don't need to do anything."

When the federal labor agency publishes its Consumer Price Index data at the end of 2008, Katz said, city staff will multiply the city's existing minimum wage by the percentage increase and add the resulting amount to the base rate.

For example, if the current $9.50-an-hour wage had been adjusted at the beginning of this year based on the reported 3.3 percent increase in the price index, another 31 cents would have been added, pushing the minimum pay rate to $9.81.

The Consumer Price Index is a measure of the average change over time in prices paid by urban consumers for goods and services. It includes food, housing, transportation, fuel, medical care, education and apparel, among other items, and accounts for taxes on property and sales taxes, according the agency.

The City Council mandated that the city's minimum-wage changes relate to the index for the western region, which comprises New Mexico, Colorado, Wyoming, Montana and all states further west, including Alaska and Hawaii. The federal government monitors several major metropolitan areas and creates specialized indexes for those, but the closest to Santa Fe is Fort Worth, Texas.

Over the past decade, the index has indicated price increases ranging between a low of 1.6 percent in 1998 to a high of 3.5 percent in 2000 and 2001.

Making increases automatic rather than subject to yearly council votes was one of the most important changes to the rules, said Carol Oppenheimer, a Santa Fe attorney who has helped lobby city officials as part of a group called the Santa Fe Living Wage Network.

Divisions between advocates of municipal minimum-wage requirements and business owners who resisted the rules pervaded public discussion in recent years and created community conflict, she said.

If the city had not amended the ordinance this week, the City Council would have been required to vote on whether to allow a scheduled increase to $10.50 an hour to take effect in January. Wednesday's amendments removed a clause that said adjustments were "not self-executing" and couldn't take effect without governing-body approval.

Opponents of hiking next year's minimum to $10.50 had indicated they would fight such an increase, Oppenheimer said, so this summer, interested parties started working on a compromise.

"There was a feeling like we were going to be having these kinds of conflicts and these fights every year," she said. "The idea was let's just put this to rest, let's put in an across-the-board $9.50 with the automatic annual cost-of-living increases so we can all move on to more pressing issues."

The amendments also will broaden the pay requirements as of January to include small employers in what Oppenheimer said is an attempt to level the playing field. Previously, the ordinance only applied to employers with more than two dozen workers.

Before this week's council vote, Santa Fe's wage requirement was already reported as the highest of its kind in the nation, and other New Mexico communities had begun adopting their own wage laws before the state Legislature limited local jurisdictions from setting rates that are higher than the state's new minimum of $7.50 an hour.

Oppenheimer said the 2007 state law will allow local governments to set new wages in 2010, and it's likely the Living Wage Network would lobby Santa Fe County government to implement a minimum-wage ordinance that year affecting employers located outside city limits.

Workers or employers who have questions about the city's Living Wage Ordinance or who want to report a violation can call the city of Santa Fe's Constituent Services Office at 955-6949.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.