This article shall be known and may be cited as the "City of Davis Living Wage Ordinance."
(Ord. 2327 § 1, 2008)
(a)
The purpose of this article is to protect the public health, safety and welfare, by ensuring city employees, employees of city service contractors, and employees of other businesses who receive funding from the city earn an hourly wage that is sufficient to enable one working parent with one dependent to live with dignity and economic self-sufficiency.
(b)
The city contracts with many businesses and organizations to provide services to the public, and construct necessary public improvements, for the purpose of enhancing quality of life, promoting economic development and job growth. Such public expenditures should also be spent to set a community economic standard that permits workers to live out of poverty. The city council finds that the use of city funds to provide living wage jobs will decrease poverty, increase consumer income, and reduce the need for taxpayer funded social service programs.
(c)
In adopting the City of Davis Living Wage Ordinance, the city seeks to further its goal of promoting a standard of living for all city employees and employees of city service contractors which will, in time, provide employees with the ability to live in the community in which they work.
(d)
The city council of the City of Davis finds as follows:
(1)
The City of Davis awards contracts to private firms and other businesses to provide services to the public and to city government; and
(2)
The City of Davis has a limited amount of taxpayer resources to expend; and
(3)
The use of taxpayer dollars to promote sustenance and creation of living wage jobs will increase consumer income, decrease levels of poverty and reduce the need for taxpayer-funded social programs in other areas; and
(4)
When city funds are used to contract for services, such contracts should demonstrate an effort to promote an employment environment that enhances the general quality of life within the community and maximizes the productive effect of the city's limited resources; and
(5)
The city's use of contractors that do not provide health insurance to their employees can result in imposing the costs of their medical care on the public; and
(6)
That employees are far likelier to be healthy if their employer provides reasonable health insurance to them and their dependents; and
(7)
Not-for-profit employers should be granted special consideration for compliance with the living wage so as not to reduce the levels of service provided to the community; and
(8)
City regulations requiring the payment of a living wage are intended to work in harmony with other city regulations such as the city's prevailing wage regulations designed to address the economic needs of low wage workers in the city.
(Ord. 2327 § 1, 2008)
The following words and phrases whenever used in this article shall be construed as defined in this section:
means the City of Davis and all city agencies.
means all persons that receive from the city direct assistance in the form of grants, loans, or loan guarantees, in-kind services, waivers of city fees, real property or other valuable consideration in the amount of more than one hundred thousand dollars in any twelve-month period.
means any individual employed by an employer unless he or she spends less than twenty-five percent of his or her work time on work arising from a service contract, including subcontracts therefrom.
means those persons identified in Section 15.20.040, except that no person other than the city shall be deemed an employer until they receive a new contract, franchise, or financial aid from or through the city. For these purposes the term "new" includes any arrangement entered into after this Ordinance was introduced, or any amendment, extension or renewal of a preexisting arrangement. A subcontractor shall be deemed to have received a new contract through the city when the person to whom it is subcontracting receives a new city contract.
mean a non-profit organization described in Section 501(c)(3) of the Internal Revenue Code.
means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity that may employ individuals or enter into contracts.
means a contract given a contractor by the city for the furnishing of services to or for the city. Service contracts include without limitation to security guard, janitorial, waste management, landscaping, tree-trimming, and equipment maintenance services. Service contracts do not include those contracts in which services are incidental to the delivery of products, equipment or commodities.
means any person that enters into a service contract as hereafter defined in an amount equal to or greater than twenty-five thousand dollars.
(Ord. 2327 § 1, 2008)
The following persons shall comply with the minimum compensation standards established by this article:
(a)
The following persons, provided they employ more than six employees:
(1)
The City of Davis, including all its agencies, departments and offices.
(2)
For-profit service contractors which receive contract(s) for twenty-five thousand dollars or more from the city in a twelve-month period. Compliance shall be required during the term of the city contract(s).
(3)
Subcontractors of any of the persons described in subsection (a)(2) of this section that receive twenty-five thousand dollars or more, in a twelve-month period, for services provided on a city contract.
(b)
The following persons, provided they employ more than twenty-five employees:
(1)
Non-profit service contractors which receive contracts from the city of one-hundred thousand dollars or more in a twelve-month period. Compliance shall be required during the term of the city contract. All non-profit organizations subject to the provisions of this article shall be exempted from the wage requirements for the first three years following adoption of the ordinance codified in this article, unless such organizations agree with the city to comply earlier.
(2)
Recipients of city franchises which receive more than five-hundred thousand dollars or more in annual gross receipts within the city.
(3)
Public agencies that receive contract(s) for one-hundred thousand dollars or more from the city in a twelve-month period.
(c)
For the purposes of determining the number of employees employed, the number of employees shall be determined by the most recent payroll period at the time the city contract is executed, provided however, that if the city contract requires that the person hire additional employees, or if the bid or proposal to the city states that additional employees will be hired to provide work under the city contract, then the number of employees shall be the total of the number of employees at the time the contract is executed plus the additional employees hired to provide the contracted services to the city.
(Ord. 2327 § 1, 2008)
(a)
Any employer may request a waiver from the requirements of this article by providing a written waiver request to the city manager or designee explaining with specificity why such employer is unable to satisfy all or any part of the requirements set forth herein. Upon review of the request, the city manager or designee may recommend a waiver to the city council; provided, that:
(1)
The request sets forth the reasons for the employer's inability to comply with the provisions of this article, including a complete cost accounting for the proposed work to be performed, including an itemization of the wages and benefits to be paid to all employees.
(2)
The employer demonstrates that the waiver: (A) will further the interests of the City of Davis in providing positions that provide a living wage or a total compensation package that is the equivalent of a living wage or will train employees so that they will have the skills for such positions; and (B) will not be used to replace or displace existing positions or employees or to lower the wages of current employees.
(b)
The city council may grant a waiver only upon a finding and determination that the employer has demonstrated economic hardship and/or that the waiver will further the interests of the City of Davis by providing positions that provide a living wage or a total compensation package that is the equivalent of a living wage or will train employees so that they will have the skills for such positions, and will not be used to replace or displace existing positions or employees or to lower the wages of current employees. In considering a waiver request, partial waivers targeting the specific hardship issue are to be favored over blanket waivers.
(c)
No waiver shall be granted for more than one twelve-month period. At the end of the twelve-month period, the employer may submit a request to the city manager or designee for a new waiver. Any such additional waiver shall explain why the circumstances supporting the initial or later waiver was not cured or corrected during the preceding twelve-month period.
(d)
The city council of the City of Davis reserves the right to waive the requirements of this article upon a finding and determination by the city council that a waiver is in the best interests of the City of Davis.
(e)
All of the provisions of this article, or any part hereof, may be waived by a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in such agreement in clear and unambiguous terms.
(Ord. 2327 § 1, 2008)
Except as otherwise provided in this article, an employer subject to this article shall provide its covered employees the following minimum compensation:
(a)
Living wages. The employer shall pay each employee an hourly wage of not less than eleven dollars, provided that the employer also provides a minimum of one dollar and fifty cents per hour per employee towards an employee health benefits plan or equivalent. If the employer does not provide employees with such a health benefits plan, the employer shall pay each employee an hourly wage of not less than twelve dollars and fifty cents. The hourly wage rate will be adjusted annually pursuant to subsection (d) below.
(b)
Time-off. Employees shall be entitled to at least twenty-two days off per year for sick leave, vacation, or personal necessity in addition to any other time off granted employees under federal and/or state leave laws. Twelve of the required days off shall be compensated at the same rate as regular compensation for a normal working day. Ten of the required twenty-two days may be uncompensated days off. Employees who work part-time shall be entitled to accrue compensated days off in increments proportional to that accrued by full-time employees. Employees shall be eligible to use accrued days off after the first six months of satisfactory employment or consistent with employer policy, whichever is sooner. Paid holidays, consistent with established employer policy, may be counted toward provision of the required twelve compensated days off. Compensation for paid leave for part-time on-call employees, pro-rated as described herein above, shall be provided as premium pay twice a year to employees who worked a minimum of five hundred twenty hours in the previous six months.
(c)
Additional compensation permissible. Nothing in this article shall be construed to limit an employer's discretion to provide greater wages or time-off to its employees.
(d)
The initial rates set forth in subsection (a) above shall increase annually, effective July 1st, in accordance to reflect increases during the preceding year in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-San Jose (CPI-U), as published by the U.S. Department of Labor, Bureau of Labor Statistics.
(Ord. 2327 § 1, 2008; Ord. 2390 § 36, 2012)
Every city service contract, franchise agreement, grant, or lease agreement with a qualifying employer or any amendments thereto, shall contain provisions requiring the employer to comply with the requirements of this article. Such provisions shall address the employer's duty to promptly provide to the city documents and information verifying its compliance with the requirements of this article. Such provisions shall also require the employer to notify each of its employees of the requirements of the article. Prior to commencement of the contract's term or execution by the city, each contractor, subcontractor, lessee of city property or other city-funded employer will certify to the satisfaction of the city that its employees are paid a living wage as provided by the article. Such provisions shall also address the penalties for non-compliance with this article, including, but not limited to, termination of the contract.
(Ord. 2327 § 1, 2008)
The requirements of this article shall not be applicable to the following employees:
(a)
An employee participating in a temporary job-training program approved by the city in which a significant component of the employee's training consists of acquiring specialized knowledge, abilities, skills or job readiness;
(b)
An employee who is under twenty-one years of age employed by a non-profit entity for after-school or summer employment or as a trainee for a period not longer than one hundred twenty days;
(c)
An employee employed on a temporary project which will not exceed six months in duration;
(d)
Volunteers, including part-time firefighters and part-time firefighters with EMT certification, part-time paramedics and part-time emergency medical technicians, provided there is no replacement or displacement of existing firefighter positions or employees;
(e)
Employees of contractors on city public works projects subject to the requirements of prevailing wage requirements set forth on Division 2, Part 7, of the California Labor Code, when such prevailing wage requirements exceed requirements of the Living Wage Ordinance;
(f)
Employees who are standing by or on-call according to the criteria established by the Fair Labor Standards Act, 29 U.S.C. Section 201. This exemption shall apply only during the time when the employee is actually standing by or on-call;
(g)
Any disabled employee who: (1) is covered by a current sub-minimum wage certificate issued to the employer by the U. S. Department of Labor, or (2) would be covered by such a certificate but for the fact that the employer is paying a wage equal to or higher than the minimum wage;
(h)
An employee for whom application of the requirements of this article is prohibited by state or federal law;
(i)
An employee subject to a bona fide collective bargaining agreement where the waiver of the provisions of this article are set forth in clear and unambiguous terms in such an agreement.
(Ord. 2327 § 1, 2008)
It shall be unlawful to retaliate or discriminate against any person on account of his or her having claimed a violation of this article. No work may be reassigned in order to evade coverage under this article.
(Ord. 2327 § 1, 2008)
(a)
Any person may report alleged violations of this article to the city manager or designee. The city manager will establish a procedure for receiving and investigating such complaints and take appropriate enforcement action.
(b)
To the extent permitted by law, any complaints and related investigation documents shall be treated as confidential and exempt from disclosure in accordance with the California Public Records Act.
(Ord. 2327 § 1, 2008)
(a)
An employee claiming violation of this chapter may, after exhausting remedies outlined in Section 15.20.100, bring an action in the Municipal Court or Superior Court of the State of California, as appropriate, against an employer and obtain the following remedies:
(b)
Notwithstanding any provision of this article or any other provisions in the Davis Municipal Code to the contrary, no criminal penalties shall attach for any violation of this article.
(c)
No remedy set forth in this article is intended to be exclusive or a prerequisite for asserting a claim for relief to enforce any rights hereunder in a court of law. This article shall not be construed to limit an employee's right to bring a common law cause of action for wrongful termination.
(d)
Nothing in this article shall be interpreted to authorize a right of action against the city.
(Ord. 2327 § 1, 2008)
Contractors for services and subcontractors shall not hinder or further collective bargaining organization or other collective bargaining activities by or on behalf of an employer's employees. However, this restriction shall not apply to any expenditure made in the course of good faith collective bargaining, or to any expenditure made pursuant to obligations incurred under a bona fide collective bargaining agreement.
(Ord. 2327 § 1, 2008)
The city department head responsible for administering a contract for services may take any of the following enforcement actions in accordance with instructions issued by the city manager:
(a)
Assess liquidated damages as provided for in the contract for services;
(b)
Pursue any other remedies prescribed by law or by the contract for services for breach of the contract;
(c)
Recommend to the city council that the contract for services be terminated.
In connection with any enforcement action undertaken by the city which establishes a violation of this article, the city shall be entitled to recover from the violator all of its enforcement costs including any investigation costs, litigation costs and attorney fees. |
(Ord. 2327 § 1, 2008)