Board accepts amendments to minimum compensation rule; raises for IHSS and nonprofit contractors to be considered in committee

The Board of Supervisors on Oct. 16 accepted amendments to the city's Minimum Compensation Ordinance (MCO) that would raise minimum compensation for employees of city contractors and create a working group to study wage equity effects.

Key changes accepted by the board's amendment vote included: a raise to $17 an hour for IHSS (in‑home supportive services) workers effective 60 days after enactment, a raise for nonprofit contractor workers to $16 an hour beginning July 1, 2019, and creation of a comptroller‑led working group to examine wage equity and compaction, produce recommendations to the mayor and board by April 1, 2019, and report back in time for the next budget cycle.

The board accepted the amendment package on a roll call (10 ayes, 1 no — President Cohen recorded a dissent on the amendment vote). Sponsors presented a broad set of policy rationales: rising local costs of living, an aging population that relies on IHSS, workforce shortages in home‑based care and social‑service nonprofits, and the need to retain and recruit critical service staff.

Supporters — including labor organizations and service‑provider advocates — argued the modest increases would stabilize a workforce that is largely female and people of color, and would reduce turnover in jobs that provide home care for seniors and people with disabilities. Speakers described the IHSS workforce as essential to allowing seniors and disabled residents to age in place, and said nonprofits face difficulties recruiting and retaining workers at current pay rates.

Opponents and budget‑cautious supervisors warned about the fiscal impact. The city's controller and budget analysts presented preliminary cost estimates and warned that nonprofit wage pass‑throughs, wage compaction effects, and IHSS funding shifts from state and federal sources could produce sizable ongoing costs. Several supervisors said the measure should have been addressed during the regular budget cycle so impacts could be weighed with other competing priorities; others urged a fiscal trigger or other fiscal‑stability protections if a downturn arrives.

The board approved a motion to send the ordinance and its amendments to a committee of the whole for final action on Oct. 23 so the board can finalize funding sources and consider any fiscal triggers. Sponsors said they will continue discussions with the mayor's office, labor and nonprofit partners before the final vote.

Why it matters: IHSS workers and nonprofit front‑line staff provide critical care, homelessness services and shelter staffing. The workforce is aging and faces high turnover; a pay increase is intended to retain staff and avoid service interruptions. The measure has multi‑million‑dollar, ongoing budget implications for the city and contractor organizations; the board sought further review and to align adoption timing with budgetary planning.

Quote: "Raising IHSS workers to $17 an hour is not only the morally right thing to do; it is a must‑do if we are going to recruit the workforce needed to take care of the exploding senior population here in San Francisco." — Supervisor Hillary Ronen (remarks in support)

Ending: The board accepted the amendments and will revisit the ordinance at a committee‑of‑the‑whole meeting on Oct. 23 to consider final language, funding sources, and possible fiscal triggers.