[HISTORY: Adopted by the Town Board of the Town of Oyster Bay 8-21-2001 by L.L. No. 4-2001. Amendments noted where applicable.]
This chapter is promulgated for the purpose of ensuring that employees of the Town of Oyster Bay's contractors and subcontractors for service contracts and subcontracts earn an hourly wage to meet their basic needs, based upon the following findings:
That the Town of Oyster Bay provides service contracts and subcontracts to businesses that result in the creation or maintenance of a wide variety of employment opportunities in the Town of Oyster Bay.
That, while the Town of Oyster Bay has limited taxpayer resources to expend, it has a responsibility to set a standard for wages that permits employees and their dependents of the above referenced businesses to meet their basic needs.
That the use of taxpayer dollars to promote sustenance and the creation of living wage jobs will increase consumer income, reinvigorate neighborhood businesses and reduce the need for taxpayer-funded social programs.
That the creation of the living wage standards will relieve the undue burden placed upon the community and taxpayers who otherwise must further subsidize employers paying subpoverty wages to the abovementioned employees and their dependents.
As used in this chapter, the following terms shall have the meanings indicated:
- Any service contract or subcontract let to a contractor with 10 or more employees by the Town of Oyster Bay for the furnishing of services to or for the Town of Oyster Bay (except contracts where services are incidental to the delivery of products, equipment or commodities) which involves an expenditure equal to or greater than $50,000. A contract for the purchase or lease of goods, products, equipment, supplies or other property is not an "assistance" for the purposes of this definition.
- COVERED EMPLOYER
- An applicant for assistance that has not been granted an exemption from this chapter.
- COVERED EMPLOYEE
- A person employed on a full-time basis by a covered employer to perform work on or for the project or matter for which the covered employer has received assistance; provided, however, that persons who are employed in construction work covered pursuant to federal, state or local prevailing wage laws shall be exempt from this chapter.
- TOWN DEPARTMENT
- The Department of the Town of Oyster Bay in which any contract or subcontract is entered into to provide services for the Town of Oyster Bay.
Applicability. Covered Employers shall pay no less than a Living Wage to their Covered Employees, who perform at least 40 hours of work per week, 50 weeks a year, provided that in the case of employees performing nonconstruction work that is covered by state or local prevailing wage laws, covered employers shall pay the greater of a Living Wage or said prevailing wage for non-construction work.
Amount of wage. The Living Wage shall be calculated on an hourly basis and shall be no less than $9 per hour worked with health benefits, as described in this chapter, or otherwise $10.25 per hour. The Living Wage may, by duly enacted resolution of the Town of Oyster Bay, be upwardly adjusted each year no later than April 1 in proportion to the increase immediately preceding December 31 over the year earlier level of the area Consumer Price Index as published by the U.S. Department of Commerce, Bureau of Economic Analysis, applied to $10.25. The contractor shall provide written notification of the rate adjustments to each of its employees and to its subcontractors and/or tenants, who shall provide written notices to each of their employees, if any, and make the necessary payroll adjustments by July 1.
Health benefits. Health benefits required by this chapter shall consist of the payment of at least $1.25 per hour towards the provision of health-care benefits for employees and their dependents. Proof of the provision of such benefits must be submitted to the agency not later than 30 days after execution of the contract to qualify for the wage rate in Subsection B for employees with health benefits.
Certification of employers paying less than living wage barred. Prior to entering into any agreement with the Town of Oyster Bay for any form of Assistance, a Covered Employer must certify for the town department that it will pay each of its covered employees no less than the Living Wage.
Living wage reporting. Each Covered Employer shall maintain payrolls for all Covered Employees and basic records relating thereto. The records shall contain: the zip code of each employee's place of residence, the number of hours worked each day, the gross wages, deduction made, actual wages paid and any other data as may be required. Upon request by the Town Board, a Covered Employer shall produce for inspection and copying its payroll records for any or all of its Covered Employees.
The town department shall promulgate rules and regulations necessary and appropriate for the implementation of this chapter.
Covered Employers who fail to submit documents, declaration or information required to demonstrate compliance with this chapter, shall be deemed nonresponsive and subject to disqualification and other sanctions set forth herein.
The town department shall develop an administrative procedure and appeal process for determining compliance with this chapter.
All RFP's, town contracts and financial assistance agreements subject to this chapter shall contain the following two paragraphs or substantially equivalent language:
"This contract is subject to the Living Wage Law of the Town of Oyster Bay. The Law requires that, unless specific exemptions apply, or a waiver is granted, all employers (as defined) under service contracts (as defined) shall provide payment of a minimum wage to employees (as defined) of $9 per hour with health benefits of at least $1.25 per hour or otherwise $10.25 per hour. Such rate shall be adjusted annually pursuant to the terms of the Town of Oyster Bay Living Wage Law, of the Town of Oyster Bay."
"Under the provisions of the Living Wage Law, the Town shall have the authority, under appropriate circumstances, to terminate this contract and to seek other remedies as set forth therein, for violations of this Law."
All Covered Employers subject to the provisions of this chapter shall submit a completed sworn (under penalty of perjury) Declaration of Compliance form, signed by an authorized representative, along with each proposal.
Covered Employers shall require their subcontractors and tenants/leaseholders to comply with the provisions of this chapter. Language indicating the subcontractor's or tenants/leaseholders agreement to comply shall be included in any contract or agreement between a covered employer and their contractors, subcontractors, tenants or leaseholders.
Covered Employers shall maintain a listing of the name, address, date of hire, occupation classification, rate of pay and benefits paid for each of its employees, if any, and submit a copy of the list to the town. Covered Employers shall maintain payrolls for all employees and basic records relating thereto, and shall preserve them for a period of three years after termination of their contracts.
Covered Employers shall give written notification to each current and new employee, at time of hire, of his or her rights to receive the benefits under the provisions of this chapter.
The provisions of this chapter shall augment the town's normal and customary procedure for administering its contracts. The town shall administer the requirements of this chapter as follows:
The Town Department shall develop rules and regulations necessary and appropriate to review contract documents to ensure that relevant language and information are included in town RFP's, agreements and other pertinent documents.
The Town Department shall develop rules and regulations necessary and appropriate for the monitoring of the operations of the contractors and subcontractors, to ensure compliance, including the review, investigation and resolution of specific concerns or complaints about the employment practices of a Covered Employer relative to this chapter. In such cases, the town shall attempt to resolve the problem within 30 days.
Where a violation of any provision of this chapter has been determined, the contractor or subcontractor shall be given a written notice by the town per the rules and regulations promulgated by the respective town department. If the violation continues and/or no resolution is imminent, the town shall pursue all available legal remedies, including, but not limited to, any or all of the following penalties and relief:
This chapter shall apply to all actions occurring on or after the effective date of this chapter and shall apply to:
Grounds for granting exemptions:
General exemption. Exemptions may be granted by the town where application of this chapter to a particular form of assistance is found by the town to violate specific state or federal statutory, regulatory or constitutional provision or provisions.
Youth employment exemption. An exemption to this chapter may be granted where a beneficiary is an organization who regularly employs individuals under the age of 21 in a summer youth or school-to-work program. The exemption shall only apply to these employees.
Contents of exemption requests. All general exemption requests shall include the following:
The nature of Assistance to which this chapter applies;
The specific or official name of the Assistance and Assistance program, the statutory or regulatory authority for the granting of the Assistance and a copy of that authority;
The conflicting statutory, regulatory or constitutional provision or provisions that make compliance with the chapter unlawful, and a copy of each such provision; and
A factual explanation and legal analysis of how compliance with this chapter would violate the cited provision or provisions, and the legal consequences that would attach if this violation were to occur.