[HISTORY: Adopted by the Township Board of Trustees of the Charter Township of Pittsfield 2-25-2015 by Ord. No. 317 as Ch. 21 of the 2015 Pittsfield Charter Township Code. Amendments noted where applicable.]
Personnel — See Ch. 20.
The Township Board of Trustees finds as follows:
Payment of higher wages is associated with greater business investment in employee training, higher productivity, and lower employee turnover, and this chapter is intended to promote better quality and reliability of services procured for the Township or provided to Township inhabitants by contractors and grantees by promoting higher productivity and increasing retention of employees working on Township contracts and grants;
The creation of jobs that pay wages high enough to support families above the poverty level promotes the prosperity and general welfare of the Township and its residents, increases consumer spending with local businesses, and improves the economic welfare and security of affected employees;
Jobs with Township contractors, recipients of tax abatements, or certain other grantees should pay wages that permit the employees of such contractors and grantees and their families to live above the poverty level and should include employee health care benefits whenever possible;
According to a report entitled "Michigan's Families: Poor Despite Work" issued in November 1998 by the Michigan League for Human Services, from the late-1970s through the mid-1990s, the State of Michigan experienced a 152% increase in the number of working families that were poor - exceeding increases in all other states - while nearly tripling the 48% increase experienced nationally;
The Michigan League for Human Services found in its April 1998 report, "Economic Self-Sufficiency: A Michigan Benchmark," that a family of three required at that time, on average, $2,724 a month to pay for housing, food, child care, health care, transportation, clothing, household supplies, a telephone, and taxes and this was at the time equivalent to an hourly wage of $15.83 for households with a single worker and $7.92 for households with two workers;
The Michigan County Social Services Association found in its 2000 "market basket survey" that a "minimal needs" budget for a family of three in Michigan required $15,222 per year, while not including anything for health care benefit costs and assuming rent of only $465 a month. According to the U.S. Department of Housing and Urban Development, the fair market rent for a two-bedroom apartment in Ann Arbor Metropolitan Statistical Area (which included Pittsfield Township) for 2000 was $717 a month, and the fair market rent for a three-bedroom apartment was $940 a month. This means that a family of three requires at least $18,246 a year to meet a minimal needs budget in this area, not including health care. This converts to an hourly wage of $8.77 for a full-time, full-year employee;
Federal and state minimum wages, currently set at only $5.15 an hour, mean that a full-time, full-year minimum wage employee earns only $206 a week, or $10,712 a year, while the 2000  United States Department of Health and Human Services federal poverty [level] guideline was $11,250 for a two-person family, $14,150 a year for a three-person family, and $17,050 a year for a four-person family and income near the poverty level is not a desirable standard of living sufficient to meet the subsistence needs of a family in the Township and its surrounding communities;
Requiring manufacturers, outside service vendors/contractors, and certain other grantees that receive public dollars in the form of tax abatements, service contracts, and other grants of financial assistance to pay their affected employees a living wage will be in the best interest of the Township, the affected employees and their families, as well as Washtenaw County and the State of Michigan, as a whole; and
This chapter is adopted pursuant to the Township's spending and procurement powers as authorized under Article 7 of the 1963 Constitution and it provides for payment of living wages only to employees of covered employers; further, this chapter does not establish any generally applicable Township minimum wage, or affect the wages paid by any business or individual that chooses not to provide services covered by this chapter to the Township, or does not accept Township tax abatements or grants falling within this chapter's terms.
Therefore, this chapter is hereby ordained by the Township to ensure that outside vendors/contractors and manufacturers who receive public monies through service contracts, tax abatements, and certain other grants of financial assistance pay their affected employees a "living wage" as defined herein.
For the purposes of this chapter, the following definitions shall apply:
- A person or entity that has a contract with the Township primarily for the furnishing of services (as opposed to the purchasing or leasing of goods or property) where the total amount of the contract or contracts exceeds $10,000 for any twelve-month period, including any subcontractors of such contractor.
- COVERED EMPLOYEE
- An "employee" as defined in this § 21-2 below, who is employed by a covered employer.
- COVERED EMPLOYER
- A contractor/vendor or a grantee of covered financial assistance that has not been granted an exemption from this chapter pursuant to § 21-7 of this chapter.
- A person who is employed on a full-time basis (defined for purposes of this chapter as more than 21 hours per week) on a year-round (i.e., nonseasonal) basis, and not on a probationary basis. Also, for the purposes of this chapter, "employee" does not include on-call public employees or persons otherwise exempted or excluded by other provisions of this chapter.
- EMPLOYEE HEALTH BENEFITS or HEALTH BENEFITS
- Providing health care benefits for employees (or employees and their dependents) at employer cost or making an employer contribution toward the purchase of such health care benefits for employees (or employees and their dependents), provided that the employer cost or contribution equals no less than $1 an hour for the average workweek of such employee, and provided further that any employee payment or contribution toward health care shall not exceed $0.50 an hour for the average workweek for such employee.
- Any form of covered financial assistance as set forth under the definition of "grantee" as defined in this § 21-2 of this chapter.
- A person or entity that is a recipient of any financial assistance from the Township in the form of any federal or state grant program administered by the Township, revenue bond financing, tax increment financing, tax abatement, tax credit, direct grant, or any other form of financial assistance, including any contractors, subcontractors, or leaseholders of the grantee at the subsidized site(s), that exceeds $10,000 for any twelve-month period.
- One or more of the following or their agents, employees, servants, representatives, and legal representatives; individuals, corporations, partnerships, joint ventures, associations, labor organizations, educational institutions, mutual companies, joint-stock companies, trusts, unincorporated associations, trustees, trustees in bankruptcy, receivers, fiduciaries, and all other entities recognized at law by this state.
This chapter shall apply to any person that is a contractor/vendor or grantee as defined herein that employs or contracts with five or more individuals. Provided, however, that a nonprofit contractor/vendor or nonprofit grantee shall have at least 10 or more employees and a contract or grant that exceeds $10,000 in any twelve-month period in order for this chapter to apply to it.
The chapter shall apply to any grant, service contract, or subcontract or other form of covered financial assistance as provided by this chapter that is awarded or entered into after the effective date of the chapter. After the effective date of the chapter, entering into an agreement for an extension or renewal of any grant, contract, or subcontract or other form of financial assistance as defined herein shall be conditioned upon compliance with this chapter.
Subject to the provisions of this § 21-4, every covered employer as defined in § 21-2 shall pay its covered employees a living wage as established in this chapter.
For a covered employer that provides employee health care to its employees, the living wage shall be at least $11.05 an hour, or the adjusted wage established in Subsection B of this section.
The amount of the living wage established in this section shall be adjusted to reflect changes to the living wage established by the Washtenaw County Board of Commissioners. The adjustment shall occur and be published by the Township Clerk within 60 days of any adjustments to the Washtenaw County Living Wage.
Any contractor/vendor receiving a service contract or contracts covered by this chapter and any grantee receiving financial assistance for providing services to the public (or a portion thereof) shall pay any of its employees performing work on each such contract or grant a living wage as defined herein.
Any covered employer receiving a grant of financial assistance from the Township as defined in § 21-3, including revenue bond financing, tax increment financing, tax abatement, tax credit, direct grant, or any other form of financial assistance, shall pay all employees working in the workplace or location that is receiving or benefiting from such grant a living wage as defined herein.
The Township shall require, as a condition of any contract or grant covered by this chapter, that the affected covered employer agree to the payment of a living wage as a condition or entering into or renewal of said contract or grant. The affected covered employer shall agree to post a notice regarding the applicability of this chapter in any work place or other location in which employees or other person contracted for employment are working. The affected covered employer shall agree to provide payroll records or other documentation, as deemed necessary by the Township to the Township Clerk within 10 business days from receipt of the Township's request.
The Township shall have the right to modify, terminate, and/or seek specific performance of any contract or grant with an affected covered employer from any court of competent jurisdiction, if it is determined after a public hearing, that based upon the preponderance of evidence, the affected covered employer has not complied with this chapter.
The Township Board of Trustees, after conducting a public hearing, may grant a partial or complete exemption from the requirements of this chapter, if it determines one of the following:
The application of the chapter would violate federal, state or local law(s); and
The application of the chapter would cause economic harm to a nonprofit contractor/vendor or grantee in a fashion that would result in the harm created by the application of the chapter clearly outweighing the benefits of applying the chapter, when the affected nonprofit entity has provided a plan to come into conformity with this chapter within three years, and to the extent necessary to avoid any such harm.
No affected covered employer shall reduce the compensation, wages, fringe benefits, or leave available to any covered employee or person contracted for employment in order to pay the living wage required by this chapter. No covered employer or potentially covered employer shall reduce the hours of work, other established working conditions, or terms of employment as previously practiced for any covered employee or potentially covered employee in order to avoid coverage under this chapter. Any action in violation of this subsection shall be deemed a violation of this chapter subject to the remedies of § 21-6B.
Nothing in this chapter shall conflict with or supersede any agreement regarding the provision of health care to Township employees.
No employee covered by a federal, state, or local law requiring the payment of prevailing wages shall be covered by this chapter.
This chapter shall not be construed to apply to any person or entity that is not a beneficiary of financial assistance under this chapter solely because the person or entity is a tax-exempt religious or charitable organization under state or federal law.
This chapter shall not be applicable to the establishment and/or continuation of the following if developed specifically for high school and/or college students: