[HISTORY: Adopted by the Board of Directors of the Town of
Manchester 1-12-2010.[1] Amendments noted where applicable.]
[1]
Editor's Note: Former Ch. 212, Living Wage, adopted 4-11-2006,
was repealed 8-12-2008.
This chapter shall be known as the "Manchester Living Wage Ordinance."
The purpose and intent of this chapter is to ensure that employees
of the Town of Manchester, or employees of any entity that receives
a substantial tax benefit from the Town of Manchester, or employees
of any entity that receives substantial compensation by reason of
a contract with the Town of Manchester to provide items or services,
are paid a wage sufficient for a family of four to live at or above
the federal poverty level. This would permit a family to meet basic
needs in housing, child care, food, clothing, household items, transportation,
health care, and taxes, and thereby reduce that family's dependence
on other taxpayer-funded social programs.
For purposes of this Living Wage Ordinance, the following terms
have the meanings indicated:
The Town of Manchester, or any individual or entity that
is the contracting party pursuant to a service contract entered into
after the effective date of this Living Wage Ordinance, or any individual
or entity that is the named recipient of a tax benefit approved after
the effective date of this Living Wage Ordinance, except that the
following shall not be considered covered employers for purposes of
this Living Wage Ordinance:
Charitable foundations, charitable trusts or nonprofit agencies
or nonprofit corporations, provided that the foundation, trust or
nonprofit agency or corporation is exempt from federal income taxation
and may accept charitable contributions under Section 501 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended; or
Any entity that employs fewer than 25 eligible employees.
A person who is employed by a covered employer, during a
period when a service contract or a tax benefit is in effect, who
is a permanent employee, working on a full-time basis in the State
of Connecticut, with a normal work week of 30 or more hours. The following
shall not be considered eligible employees for purposes of this Living
Wage Ordinance:
An employee of the Town of Manchester who is a temporary or
seasonal employee. For purposes of this Living Wage Ordinance, any
employee whose accumulated compensated hours in a calendar year are
less than 0.75 FTE shall be considered a temporary or seasonal employee;
or
An employee less than 18 years of age; or
An employee who is hired as part of a school-to-work program;
or
A student who serves in a work-study program or as an intern
in a position that advances the student's career potential; or
A trainee participating for not more than six months in a training
program; or
An employee enrolled in a governmentally funded vocational rehabilitation
program; or
A volunteer working without pay; or
An employee exempted under Section 14(c) of the Fair Labor Standards
Act due to his or her disabilities; or
Any person whose wage rate is subject to a federal or State
of Connecticut statute or regulation mandating a prevailing wage rate.
Comprehensive family medical coverage which does not require
the employee to contribute more than 33% of his or her annual wages
towards the payment of the health insurance premiums and deductibles.
A minimum hourly wage rate, before taxes and all other employer
deductions, which, when paid for 40 hours of work per week, 52 weeks
per year, is equal to 115% of the poverty threshold for a family of
four, as published annually in the Federal Register by the U.S. Department
of Health and Human Services under the authority of Section 673(2)
of the Omnibus Reconciliation Act of 1981.
Any contract awarded by the Town of Manchester to any individual
or entity for services which involves an expenditure of $25,000 or
more in any one fiscal year. The following shall not be considered
"service contracts" for purposes of this Living Wage Ordinance:
Any contract for the purchase or lease of goods, products, equipment,
commodities or supplies; or
Any contract where services are provided incidental to the purchase,
lease or delivery of goods, products, equipment, commodities or supplies;
or
Any interlocal cooperation agreements between the Town of Manchester
and other governmental entities, or any contract where the Town of
Manchester has joined with other municipalities in a regional or collaborative
effort to contract with private concerns to provide municipal services.
Any agreement approved by the Board of Directors for a tax
credit, tax exemption, tax assessment arrangement or tax abatement
for property taxes otherwise payable to the Town of Manchester, with
a total value of at least $25,000.
The government of the Town of Manchester, or any department,
board, agency, or commission of the Town of Manchester, but does not
include the Manchester Board of Education, its departments, or any
entity under the jurisdiction of the Board of Education.
A.
During the term of any service contract, or while any tax benefit
is in effect, covered employers shall pay their Eligible Employees
no less than a living wage, if health benefits are offered to the
eligible employee.
B.
Covered employers must submit satisfactory proof to the Town Finance
Department that health benefits have been offered to eligible employees.
C.
If a covered employer elects not to offer health benefits to eligible
employees, the covered employer shall pay eligible employees a living
wage plus additional wages in lieu of health benefits of $3.35 per
hour.
A.
The living wage shall be adjusted annually as necessary to reflect
annual changes in the federal poverty threshold.
B.
The amount of the wage payment in lieu of health benefits payable under § 212-4C shall be adjusted annually in proportion to the change in average health benefits costs, if any, as measured by the Consumer Price Index for All Urban Consumers for the Northeast Urban-Size Class B/C for Medical Care over the preceding year, or other appropriate measure of health care cost inflation.
C.
No less than 30 days prior to the commencement of the fiscal year,
the Town Finance Department shall calculate the necessary adjustments
to the living wage and the amount of the wage payment in lieu of health
benefits and shall provide a written explanation and notice to each
covered employer of the newly adjusted amounts.
D.
After such adjustment, the living wage and any wage payment in lieu
of health benefits shall become effective and shall be paid to any
eligible employee within 60 days after receipt of notice by the covered
employer.
A.
Covered employers shall, within six months of the commencement of
any service contract or the initial receipt of any tax benefit, and
thereafter on an annual basis, provide the Town Finance Department
with a sworn affidavit affirming that all eligible employees of the
covered employer working in the State of Connecticut are receiving
the living wage and health benefits required by this chapter.
B.
The Town shall include in all service contracts and tax benefit agreements
subject to this Living Wage Ordinance language satisfactory to the
Town Finance Department which incorporates all appropriate provisions,
obligations and responsibilities, including reporting obligations,
of covered employers under this Living Wage Ordinance.
C.
Every covered employer shall post and keep in a conspicuous place
on its premises where notices to employees are customarily posted
a copy of this Living Wage Ordinance or other materials promulgated
by the Town Finance Department designed to inform employees of their
rights under the Manchester Living Wage Ordinance.
A.
No covered employer will fund wage increases required by this Living
Wage Ordinance, or otherwise respond to the provisions of this Living
Wage Ordinance, by reducing the health, insurance, pension, vacation,
or other non-wage benefits of any of its employees.
B.
A covered employer shall not discriminate in any manner against any
employee for making a complaint, participating in the complaint proceedings,
or using civil, statutory or collective bargaining remedies to advance
their interests under this Living Wage Ordinance. The Town Attorney,
or his or her designee, shall investigate allegations of retaliation
or discrimination and seek appropriate relief if there is probable
cause to believe the allegations to be true.
A.
Enforcement of the provisions of this Living Wage Ordinance may be
based on complaints of noncompliance by eligible employees or on monitoring
for compliance by the Town Finance Department.
B.
Complaint process.
(1)
Any eligible employee who believes his or her employer is not complying
with this Living Wage Ordinance may file a complaint in writing with
the General Manager within 90 days after the alleged violation.
(2)
Upon receipt of a written complaint under this Living Wage Ordinance,
the General Manager shall order an investigation of the complaint,
utilizing such resources of the Town of Manchester as may be required
to conduct the investigation. During the investigation, the General
Manager may request from the covered employer such evidence as may
be required to determine whether the covered employer has been compliant.
The General Manager shall complete the investigation and make a finding
of compliance or noncompliance within 45 days after receipt of the
complaint.
(3)
The General Manager shall give notice of his or her findings to the
covered employer. The covered employer may dispute a finding of noncompliance
by requesting a hearing from the General Manager within 30 days of
the finding. A hearing shall be conducted by the General Manager or
his or her designee within 30 days after receipt of the request. The
General Manager or his or her designee shall affirm or reverse the
finding based on evidence presented at the hearing by the Town Finance
Department and the covered employer.
(4)
If at any time during the complaint proceedings, the covered employer
voluntarily makes restitution of wages or benefits not paid to the
eligible employee, or otherwise remedies the violation alleged, then
the General Manager shall thereafter dismiss the complaint against
the covered employer.
C.
Remedies.
(1)
If, after notice of finding and hearing, a covered employer is found
to be noncompliant, the covered employer shall correct violations
and make restitution of wages retroactively to the beginning of the
period of noncompliance within 15 days, unless otherwise extended
by way of agreement between the covered employer and Town Finance
Department.
(2)
If violations are not corrected within 15 days or within the time
frame otherwise agreed upon between the Town Finance Department and
the covered employee, the General Manager or his or her designee may
do one or more of the following:
(a)
Freeze or suspend the covered employer's service contract,
until the Town Finance Department determines that the violations have
been corrected;
(b)
Revoke the covered employer's tax benefit;
(c)
Designate the covered employer as ineligible for future tax
benefits or service contracts for three years or until all restitution
has been paid, whichever is longer.
(d)
Impose a penalty for the violation, said penalty to be not less
than $1 and not more than $100. Each day that any such violation shall
continue shall constitute a separate offense and shall be punishable
as such.
(3)
Liability for payment of a living wage shall rest solely with the
covered employer. The Town of Manchester shall not be held liable
in a civil action or administrative proceeding for lost wages or other
economic losses resulting from the failure to pay a living wage, except
when it acts in the capacity of a covered employer.
A.
A covered employer may request that the Board of Directors grant
a waiver, in whole or in part, of any of the requirements of this
Living Wage Ordinance. A request for waiver shall be made in writing
to the General Manager.
B.
The General Manager may apply for a special waiver where payment
of the living wage by a covered employer will substantially curtail
the services provided by the Town, have an adverse financial impact
on the Town, or is not in the best interests of the Town. A request
for a special waiver shall be forwarded by the General Manager to
the Board of Directors for action in the form of a resolution.
C.
Where the Town Attorney renders an opinion that the application of
this Living Wage Ordinance to a particular service contract or tax
benefit would violate a specific state or federal statutory, regulatory,
or constitutional provision or provisions, that particular service
contract or tax benefit may be exempted from the application of this
Living Wage Ordinance, provided that the Board of Directors approves
the exemption on that basis. A request for an exemption shall be forwarded
by the General Manager to the Board of Directors for action in the
form of a resolution.
Not later than 90 days after the commencement of each fiscal
year, the Town Finance Department shall forward a living wage report
to the Town Board of Directors, indicating for each service contract
or tax benefit in effect during the previous fiscal year:
A.
A general description of the service contract or tax benefit and
the nature of the covered employer; and
B.
Verification that all of the eligible employees of each covered employer
are receiving the living wage and health benefits required by this
chapter.
C.
The cost to the Town in terms of increased payroll expenditures for
persons employed by the Town who receive a living wage but, in the
absence of this Living Wage Ordinance, would not be eligible to receive
a living wage.
D.
To the extent feasible, an estimate of the total Town employee hours
dedicated to implementation, oversight and enforcement of the provisions
of this Living Wage Ordinance.
Covered employers shall make best efforts to attempt to fill
all new positions which result from a service contract or tax benefit
with residents of the Town of Manchester.
