[HISTORY: Adopted by the City of Norwalk Common Council 1-9-2007. Amendments
noted where applicable.]
This chapter shall be known as the "Norwalk Living Wage Ordinance."
The purpose and intent of this chapter is to ensure that employees
of the City of Norwalk, or employees of any entity that receives a
substantial tax benefit from the City of Norwalk, or employees of
any entity that receives substantial compensation by reason of a contract
with the City of Norwalk 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 Chapter, the following terms
have the meanings indicated:
The government of the City of Norwalk, or any department,
board, agency, or commission of the City of Norwalk, but does not
include the Norwalk Board of Education, its departments, or any entity
under the jurisdiction of the Board of Education.
The City of Norwalk, 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 Chapter, or any individual
or entity that is the named recipient of a tax benefit approved after
the effective date of this Living Wage Chapter, except that the following
shall not be considered covered employers for purposes of this Living
Wage Chapter:
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 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, with a normal
workweek of 30 or more hours. The following shall not be considered
eligible employees for purposes of this Living Wage Chapter:
An employee of the City of Norwalk who is a temporary or seasonal
employee. For purposes of this Living Wage Chapter, any employee whose
accumulated compensated hours in a calendar year is 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 City of Norwalk 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 Chapter:
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 City of Norwalk
and other governmental entities, or any contract where the City of
Norwalk 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 City of Norwalk for a tax credit,
tax exemption, tax assessment arrangement or tax abatement for property
taxes otherwise payable to the City of Norwalk, with a total value
of at least $25,000.
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 or, if satisfactory proof of such benefits is not submitted,
the covered employer shall pay eligible employees a living wage plus
additional wages in lieu of health benefits of $3 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 § 62-4C 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 City 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 City Finance Department
with a report as to employment practices which are subject to this
Living Wage Chapter. The report shall adhere to a format specified
by the City Finance Department and shall include:
(1)
A statement, as to each eligible employee, containing the following:
(a)
The employee's job title;
(b)
The lowest hourly wage earned by the employee for the reporting
period immediately preceding the filing of the report;
(c)
An indication as to whether the eligible employee was offered
access to a plan for health benefits sponsored by the covered employer;
(d)
If the eligible employee was offered access to a plan for health
benefits sponsored by the covered employer:
[1]
The amount of the hourly equivalent value of the covered employer's
contribution to that health insurance plan on behalf of the eligible
employee (annual contribution divided by 2,080); or
[2]
If the Eligible Employee elected not to participate in the health
insurance plan, but could have done so, then what the hourly equivalent
value of the covered employer's contribution to that health insurance
plan (annual contribution divided by 2,080) would have been; and
(e)
A signed attestation by an officer of the covered employer that
the information provided in the report is truthful and accurate, and
that the officer is aware of the provisions of this Living Wage Chapter.
B.
The City shall include in all service contracts and tax benefit agreements
subject to this Living Wage Chapter language satisfactory to the City
Finance Department which incorporates all appropriate provisions,
obligations and responsibilities, including reporting obligations,
of covered employer under this Living Wage Chapter.
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 Chapter or other materials promulgated
by the City Finance Department designed to inform employees of their
rights under the Norwalk Living Wage Chapter.
A.
No covered employer will fund wage increases required by this Living
Wage Chapter, or otherwise respond to the provisions of this Living
Wage Chapter, by reducing the health, insurance, pension, vacation,
or other nonwage 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 Chapter. The Corporation Counsel,
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 Chapter may be
based on complaints of noncompliance by eligible employees or on monitoring
for compliance by the City Finance Department.
B.
Complaint process.
(1)
Any eligible employee who believes his or her employer is not complying
with this living Wage Chapter may file a complaint in writing with
the Ordinance Committee of the Common Council or its designee within
90 days after the alleged violation.
(2)
Upon receipt of a written complaint under this Living Wage Chapter,
the Ordinance Committee of the Common Council or its designee shall
order an investigation of the complaint, utilizing such resources
of the City of Norwalk as may be required to conduct the investigation.
During the investigation, the Ordinance Committee of the Common Council
or its designee may request from the covered employer such evidence
as may be required to determine whether the covered employer has been
compliant. The Ordinance Committee of the Common Council or its designee
shall complete the investigation and make a finding of compliance
or noncompliance within 45 days after receipt of the complaint.
(3)
The Ordinance Committee of the Common Council or its designee 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 Ordinance Committee of the Common Council or its designee
within 30 days of the finding. A hearing shall be conducted by the
Ordinance Committee of the Common Council or its designee within 30
days after receipt of the request. The Ordinance Committee of the
Common Council or its designee shall affirm or reverse the finding
based on evidence presented at the hearing by the City 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 Ordinance Committee of the Common Council or its designee 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 City Finance
Department.
(2)
If violations are not corrected within 15 days or within the time
frame otherwise agreed upon between the City Finance Department and
the covered employee, the Ordinance Committee of the Common Council
or its designee may do one or more of the following:
(a)
Freeze or suspend the covered employer's service contract,
until the City 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 City of Norwalk 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 Ordinance Committee of the
Common Council or its designee grant a waiver, in whole or in part,
of any of the requirements of this Living Wage Chapter. A request
for waiver shall be made in writing to the Ordinance Committee of
the Common Council or its designee.
B.
The Ordinance Committee of the Common Council or its designee may
apply for a special waiver where payment of the living wage by a covered
employer will substantially curtail the services provided by the City,
have an adverse financial impact on the City; or is not in the best
interests of the City. A request for a special waiver shall be forwarded
by the Ordinance Committee of the Common Council to the Common Council
or its designee for action in the form of a resolution.
C.
Where the Corporation Counsel renders an opinion that the application
of this Living Wage Chapter 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 Chapter, provided that the Ordinance Committee of the
Common Council or its designee approves the exemption on that basis.
A request for an exemption shall be forwarded by the Ordinance Committee
of the Common Council or its designee to the full Common Council for
action in the form of a resolution.
No less than 90 days after the commencement of each fiscal year,
the City Finance Department shall forwarded a living wage report to
the Common Council, 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.
The number of eligible employees working for each covered employer,
broken down by job title, and the wage rate paid for each position
for each such that it can be determined that all eligible employees
earn at least the living wage; and
C.
The cost to the City in terms of increased payroll expenditures for
persons employed by the City who receive a living wage but, in the
absence of this Living Wage Chapter, would not be eligible to receive
a living wage; and
D.
To the extent feasible, an estimate of the total annual cost to the
City attributable to the effect of this Living Wage Chapter, taking
into account such factors as increased expenditures for service contracts
subject to this Living Wage Chapter as compared to similar or equivalent
contracts not subject to this Living Wage Chapter, or changes observed
in the quantity or quality of bidders for City service contracts,
or any other reasonably measurable and quantifiable monetary impact
observed in connection with the implementation of this Living Wage
Chapter; and
E.
To the extent feasible, an estimate of the total City employee hours
dedicated to implementation, oversight and enforcement of the provisions
of this Living Wage Chapter.
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 City of Norwalk.
This chapter shall take effect upon publication in accordance
with the City Charter.