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:
COVERED EMPLOYER
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:
A.
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
B.
Any entity that employs fewer than 25 eligible employees.
ELIGIBLE EMPLOYEE
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:
A.
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
B.
An employee less than 18 years of age; or
C.
An employee who is hired as part of a school-to-work program;
or
D.
A student who serves in a work-study program or as an intern
in a position that advances the student's career potential; or
E.
A trainee participating for not more than six months in a training
program; or
F.
An employee enrolled in a governmentally funded vocational rehabilitation
program; or
G.
A volunteer working without pay; or
H.
An employee exempted under Section 14(c) of the Fair Labor Standards
Act due to his or her disabilities; or
I.
Any person whose wage rate is subject to a federal or State
of Connecticut statute or regulation mandating a prevailing wage rate.
HEALTH BENEFITS
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.
LIVING WAGE
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.
SERVICE CONTRACT
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:
A.
Any contract for the purchase or lease of goods, products, equipment,
commodities or supplies; or
B.
Any contract where services are provided incidental to the purchase,
lease or delivery of goods, products, equipment, commodities or supplies;
or
C.
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.
TAX BENEFIT
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.
TOWN OF MANCHESTER or TOWN
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.
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.