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CC - ACTION ITEM: Discussion of a Potential Residential Construction Minimum Wage Program and Direction to the City Manager as Deemed Appropriate.
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Meeting Date: August 10, 2026
Contact Person/Dept.: Adam Troy/City Manager's Office
Phone Number: (310) 253-6000
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/05/2026)
Department Approval: Adam Troy, Assistant City Manager (08/03/2026)
RECOMMENDATION
Staff recommends the City Council discuss a potential Residential Construction Minimum Wage Program and provide direction to the City Manager as deemed appropriate.
BACKGROUND/DISCUSSION
On April 13, 2026, the City Council requested that a discussion of a residential construction minimum wage program for mid-size residential construction projects of 10 units or fewer and less than 85 feet in height including legal protections for undocumented workers be placed on the agenda for City Council discussion.
Staff reviewed the concept which is summarized below for discussion purposes. Several jurisdictions across California are in the process of exploring residential construction minimum wage programs as a mechanism to address wage disparities in the private construction sector, including the Cities of Los Angeles and West Hollywood. Unlike public works projects, which are subject to state prevailing wage requirements under the California Labor Code, private residential construction projects have historically not been subject to locally mandated wage floors beyond the applicable state or local minimum wage. This gap has raised concerns among some policymakers and labor advocates regarding the adequacy of compensation for workers engaged in privately funded residential building and renovation projects, particularly as construction activity and housing development continue to expand across the region.
The concept of a r...
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