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Home My WebLink About2015-12-14 16-042 ORDINANCECOUNCIL ACTION Item No. 16-042 Date: December 14, 2015 Item/Subject: Ordinance, Adding Chapter 179, Minimum Wage, to the Code of the City of Bangor Responsible Department: Legal Commentary: This Ordinance, if approved, will establish a local minimum wage consistent with the proposal contained in the citizen's initiative, including the January 2017 effective date. The minimum wage set by the state or federal government has not been increased since 2009. The minimum wage in Maine is $7.50 per hour. Though public sentiment has indicated support for an increase in the minimum wage the federal and state governments have not acted. There is a citizen's initiative currently underway which will likely provide a state-wide ballot measure to increase the state-wide minimum wage. The proposed citizen's initiative provides for a greater minimum wage for Maine's lowest income earners, increasing to $9.00 per hour in January 2017 up to $12.00 per hour in 2020, followed by an annual CPI adjustment. This item was reviewed at a November 30 workshop of the City Council. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for Passage X First Reading Referral Department Head r City Manager 1 ul-� Finance Director Page _of_ 16-042 DECEMBER 14, 2015 Assigned to Councilor Plourde CITY OF BANGOR lance, Adding Chapter 179, Minimum Wage, to the Code of the City of Bangor EAS, the minimum wage for state or federal has not been increased since 2009; and WHEREAS, the current minimum wage in Maine is $7.50 per hour; and WHEREAS, the minimum wage in Maine in 1966 was $1.25 per hour and adjusted for inflation ov r nearly 5 decades, that same wage would equal $9.15 per hour - $1.65 more than it is currently, and WHEREAS, a report last year by the Maine Women's Policy Center found that 85% of Maine's workers who would be impacted by raising the minimum wage are over 20 years of age; and WHEREAS, according to a report by the Maine Center for Economic Policy, 23°x`0 of workers in Second District — or 60,000 people and for the whole state that number is over 100,000 Maine people Ad benefit from a raise in the minimum wage to $10.10 per hour as proposed by President Obama; WHEREAS, 62% of Maine women who would benefit from an increase in the minimum wage no partner supplementing their income; and WHEREAS, Bangor is home to 6% of Maine's state wide workforce or about 35,000 workers extrapolating from the state wide analysis at least several thousand workers in Bangor would benefit i an increase in the minimum wage; and WHEREAS, the City of Bangor has the authority to exercise power and perform functions in to protect the health, safety, and general welfare of its citizens; and WHEREAS, establishment of a minimum wage within the City of Bangor will promote the safety and welfare of the citizens of the City of Bangor. , THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT, Code of the City of Bangor be amended as following: 16-042 DECEMBER 14, 2015 Unless the context otherwise indicates, the following words shall have the following meanings. (a) Minimum wage payment required: Except as provided herein, Employers shall pay all Employees no less than the minimum wage for each hour worked within the City Limits. (b) Minimum wage rate. The minimum hourly wage is $7.50 per hour. StartingJanuary 1, 2017, the minimum hourly wage is $9.00 per hour; startingJanuary 1. 2018, the minimum hourly wage is $10.00 per hour; startingJ1, 2019, the minimum hourly wage is $11.00 per hour and startingJanuary 1, 2020, the minimum hourly wage is $12.00 per hour. On January 1, 2021 and each January 1 st thereafter, the minimum hourly wage then in effect must be increased by the increase, if any, in the cost of living. The increase in the cost of living must be measured by the percentage increase, if any, as of August of the previous year over the level as of August of the 16-042 DECEMBER 14, 2015 year preceding that year in the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI -W, for the Northeast Region or its successor index, as published by the United States Department of Labor, Bureau of Labor Statistics or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of 5¢. If the highest federal minimum wage is increased in excess of the minimum wage in effect under this section, the minimum wage under this section is increased to the same amount, effective on the same date as the increase in the federal minimum wage, and must be increased in accordance with this section thereafter. (c) Tipped Employees: As provided in 26 M.R.S.A. §664(_2), an employer may consider tips as part of the wages_ of a tamped employee towards satisfaction of the minimum wage requirement of this ordinance. The calculation shall be pursuant to state law, 26 M.R.S.A. §664(2), as the same may 17 be amended from time to time. - 4 Notice Posting and Records. (a) Notice to Employees. Every employer shall post in a conspicuous place at any workplace or fob site where M Employee works, a notice to be provided by the City informing Employees of the City's current minimum wage rates, as well as a copy of this ordinance. 1 I 9 - 5 Enforcement. (a) Any Employee receiving less than the minimum wage he or she is required to receive under this ordinance may file a written complaint with the City Manager's office. (b) The City Manager or his or her designee ma take steps to enforce this chapter; and my investigate and issue a response to the complaint within fifteen (15) work day following the receipt of a complaint. The City Manager's or is or her designee's response to the complaint shall be final. (c) If the City Manager finds that a violation of this chapter has occurred, he or she may order M appropriate relief including, but not limited to, the payment of any_ back wages withheld and/or the payment of $100.00 as a penalty for each day that a violation of this chapter has occurred. A violation of this Ordinance may also be considered a civil violation subject to the general penalty provisions of Bangor's cily code. (d) In addition, M Employee maybring `an action in a Court of competent jurisdiction against the Employer for any and all violations of this chapter, including, but not limited to, wages 1 and expenses owed under this chapter. 9 - 6 Relationship To Other Requirements. This ordinance provides for payment of minimum wage rates within the City and shall not be nstrued to preempt or otherwise limit or affect the applicabilijy applicabilityof an other law, regulation, r uirement or policy that provides for pgMent of higher wages and/or benefits. Nothing contained in is ordinance prohibits an employer from pgying more than the minimum wage rates established herein. 16-042 DECEMBER 14, 2015 179 - 7 Severability Clause. If M section, paragraph, sentence, word or phrase of this ordinance is for any reason held to be invalid or unenforceable by any court, such decision shall not affect the validity of the remaining provisions of this ordinance. IN CITY COUNCIL DECEMBERI4, 2015 MOTION MADE AND SECONDED TO WAIVE FIRST AND SECOND READINGS PASSED ITEM MOVED TO NEW BUSINESS CITY CLERjr IN CITY COUNCIL DECEMBER 14, 2015 MOTION MADE AND SECONDED TO POSTPONE INDEFINITELY PASSED CITY CLEKK