HomeMy WebLinkAbout2015-07-13 15-246 ORDINANCECOUNCIL ACTION
Item No. 15-L2 6
Date: July 13, 2015
Item/Subject: Ordinance, Adding Chapter 179, Minimum Wage, to the Code of the City of
Bangor
Responsible Department: Legal
Commentary: This item will amend the Code of the City of Bangor to increase the minimum
wage in Bangor by adding Chapter 179. Currently, the minimum wage in Maine is $7.50 per
hour and has not been increased by the state or federal government since 2009. Had it been
adjusted for inflation over the past 50 years, that same wage today would equal $9.15 per hour.
If approved, this ordinance will increase the minimum wage within the City of Bangor as follows:
effective January 1, 2016 the minimum wage will increase to $8.25; and effective January 1,
2017 minimum wage will increase to $9.00 per hour; and effective January 1, 2018, the
minimum wage will increase to $9.75 per hour; and effective January 1, 2019, and every first
day of each January thereafter, the minimum wage for all Employees, shall increase at the
percentage set by the Consumer Price Index for All Urban Consumers (CPI -U) of the previous
most up-to-date twelve (12) months as reported by the Bureau of Labor Statistics.
The City of Bangor has the authority to exercise power and perform functions in order to protect
the health, safety, and general welfare of its citizens. Based on numerous reports and studies it
can be demonstrated that the establishment of a higher minimum wage within the City of
Bangor will promote the health, safety and welfare of the citizens of the City of Bangor/
According to a report by the Maine Center for Economic Policy more than 100,000 workers in
Maine would benefit from an increase in the minimum wage. Employment in Bangor makes up
roughly 6% of Maine's workforce or about 35,000 workers. Extrapolating from the state wide
analysis at least several thousand workers in Bangor would benefit from an increase in the
minimum wage.
Department Head
Manager's Comments:
m (AL J
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
icitor
Introduced for
Passage
AS AMENDED
15-246
� JUDY' 13
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CITY OF BANGOR
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(TITLE.) Ordinance, Adding Chapter 179, Minimum Wage, to the Code of the City of Bangor
WHEREAS, 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
over 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% of workers in
the Second District — or 60,000 people and for the whole state that number is over 100,000 Maine people
would benefit from a raise in the minimum wage to $10.10 per hour as proposed by President Obama;
and
WHEREAS, 62% of Maine women who would benefit from an increase in the minimum wage
have no partner supplementing their income; and
WHEREAS, Bangor is home to 6% of Maine's state wide workforce or about 35,000 workers
and extrapolating from the state wide analysis at least several thousand workers in Bangor would benefit
from an increase in the minimum wage; and
WHEREAS, the City of Bangor has the authority to exercise power and perform functions in
order 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
health, safety and welfare of the citizens of the City of Bangor.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT,
The Code of the City of Bangor be amended as foilowing:
Chapter 179 Minimum Waae
179 -1 Purpose
The purpose of the within ordinance is to establish of a minimum wage within the City of Bangor to
promote the health safety and welfare of the citizens of the City of Bangor.
AS AMENDED
15-246
JULY 13, 2015
179 - 2 Definitions
Unless the context otherwise indicates the following words shall have the following meanings.
a) CiV: City of Bangor
b) City Limits: the physical boundaries of the City
c) Employer: Any individual group of individuals partnership association corporation, business trust,
orani other entity or group ofpersons or entities who employs or exercises control over the wages,
hours or working conditions of Employees• "Employer" shall include but not be limited to the Crtv of
Bangor:
Employee• Any_pers^ on who._performs work for an Employer for monetary compensation within the
municipal limits of the City Employee shall include persons who perform work for an employer on a
full-time, part-time. seasonal or temporary basis "Employee" shall not include any person who is
excluded from the definition of Employee under 26 M.R.S. §663 of Chapter 7 Employment Practices
and working_for an Employer for academic credit from an accredited school college or umversrtv for the
purpose of this ordinance.
e) Minimum wage• The minimum hourly rate of monetary compensation that an Employer may legally
pay any Employee who works within the City.
fl Service Employee• "Service Employee" means any employee engaged in an occupation in which the
employee customarily and regularly receives more than 30 dollars a month in tips.
g) Tip A sum presented by a customer as a gift or gratuity in recogaition of some service performed by
the Employee.
hZ Tipped Em lloyee• Apy Service Employee engaged in an occupation in which he or she customaries
and regularly receives tips from customers.
179 - 3 Minimum WaYe.
(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.
(i) On January 1 2017 the minimum wage for all Employees shall be established as
$8.25 per hour;
(ii) On January 1 2018 the regular minimum wage for all Employees shall be raised
to $9.00 per hour;
(iii) On January 1 2019 the regular minimum wags for all Employees shall be raised
to $9.75 per hour;
AS AMENDED
15-246
JULY 13, 2015
(iv) Effective January 1 2020 and every first day of each January thereafter, the
minimum wage for all Employees shall increase at the percentage set by the
Consumer Price Index for All Urban Consumers (CPI -U) of the previous most up-
to-date twelve (12) months as reported by the Bureau of Labor Statistics. The sum
of the most recent twelve months for which there is a calculated 'CPI -U reported
by the Bureau of Labor Statistics will be the rate by which to define the increase
in the minimum wage
(c) Tipped Employees• An employer may consider tips as part of the wages of a service emnloyee
towards satisfaction of the minimum wage requirement of this ordinance, but such a tin credit
Ma y not exceed 50% of the minimum hourly wage established in this ordinance. An gmnlover
who elects to use the tip credit must inform the affected employee in advance and must be able to
show that the emQloyee receives at least the minimum hourly wage when direct wages and the tin
credit are combined Upon a satisfactory showing by the emnlovee or the emnlovee's
representative that the actual tips received were less than the tin credit, the employer shall
increase the direct wages by the difference.
The tips received by a service employee become the property of the employee and may not be
shared with the employer. Tips that are automatically included in the customer's bill or that are
charged to a credit card must be treated like tips given to the service employee. A tin that is
charged to a credit card must be paid by the employer to the employee by the next regular payday
and may
not be held while the employer is awaiting reimbursement from a credit card company.
179 - 4 Notice Posting and Records.
(a) Notice to Employees EyeKy employer shall post in a conspicuous place at any workplace or
job site where any 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.
179 - 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 may take appropriate steps to enforce this chapter;
and may investigate and issue a response to the complaint within fifteen (15) work days
following the receipt of a complaint The City Manager's or his 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 apenalty 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 city code.
AS AMENDED
15-246
JULeT �S� cation
(d) In the alternative an� Em�lo ey e ma�brin� an action in a Court of compe e tur
against the Employer for any and all violations of this chapter, including, but not limited to,
wages and expenses owed under this chapter.
179 - 6 Relationship To Other Requirements.
This ordinance provides for payment of minimum wage rates within the City and shall not be
construed to preempt or otherwise limit or affect the applicability of any other law, regulation,
requirement or policy that provides for payment of higher wages and/or benefits. Nothing contained in
this ordinance prohibits an employer frompaying more than the minimum wage rates established herein.
179 - 7 Severability Clause.
If any section paragraph sentence word or phrase of this ordinance is for any reason held to be
invalid or unenforceable by an courtsuch decision shall not affect the validity of the remaining
provisions of this ordinance.
Additions underlined,
15-246
JULY 13, 2015
DP DPL. Assigned to Councilor Baldacci
s:
z� CITY OF BANGOR
(TITLE.) Ordinance, Adding Chapter 179, Minimum Wage, to the Code of the City of Bangor
WHEREAS, 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
over 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% of workers in
the Second District — or 60,000 people and for the whole state that number is over 100,000
Maine people would benefit from a raise in the minimum wage to $10.10 per hour as proposed
by President Obama; and
WHEREAS, 62% of Maine women who would benefit from an increase in the minimum wage
have no partner supplementing their income; and
WHEREAS, Bangor is home to 6% of Maine's state wide workforce or about 35,000 workers
and extrapolating from the state wide analysis at least several thousand workers in Bangor would
benefit from an increase in the minimum wage; and
WHEREAS, the City of Bangor has the authority to exercise power and perform functions in
order 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
health, safety and welfare of the citizens of the City of Bangor.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT,
The Code of the City of Bangor be amended as following:
Chapter 179 Minimum Wage Minimum Wage
15-246
JULY 13, 2015
179 - 1 Purpose
The purpose of the within ordinance is to establish of a minimum wage within the City of Bangor to
promote the health, safety and welfare of the citizens of the Ci of Bangor.
179 - 2 Definitions
Unless the context otherwise indicates, the following words shall have the following meanings.
a) City: City of Bangor
b) City Limits: the physical boundaries of the City
c) Employer: Any individual, group of individuals, partnership, association, corporation, business trust,
or any other entity or group of persons or entities who employs or exercises control over the wage
hours or working conditions of more than four Employees; "Employer" shall include but not be limited
to the City of Bangor.
d) Employee: Any person 18 years of age or older who performs work for an Employer for monetary.
compensation within the municipal limits of the City. Employee shall include persons who perform work
for an employer on a full-time, part-time, seasonal or temporary basis. "Employee" shall not include any
person who is excluded from the definition of Employee under 26 M.R.S. 063 of Chapter 7
Employment Practices and working for an Employer for academic credit from an accredited school,
college or university_for the purpose of this ordinance. Tipped Employees are not included in this
definition of Employee.
e) Minimum wage: The minimum hourly rate of monetary compensation that an Employer may legally
pay and Employee who work within the City.
fl Tip: A sum presented by a customer as a gift or qty in recognition of some service_ performed by
the Employee.
g) Tipped Employee: Any Employee 18 years of age or older engaged in an occupation in which he or
she customarily and regularly receives tips from customers.
179 - 3 Minimum Wage.
(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.
(i) On January 1, 2016, the minimum wage for all Employees shall be established as
$8.25 per hour;
(ii) On January 1, 2017, the regular minimum wage for all Employees shall be raised
to $9.00 per hour;
15-246
JULY 13, 2015
(iii) On January 1, 2018, the regular minimum wage for all Employees, shall be raised
to $9.75 per hour;
(iv) Effective January 1, 2019, and every first day of each January thereafter, the
minimum wage for all Employees, shall increase at the percentage set by the
Consumer Price Index for All Urban Consumers (CPI -U) of the previous most up-
to-date twelve (12) months as reported by the Bureau of Labor Statistics. The sum
of the most recent twelve months for which there is a calculated CPI -U reported
by the Bureau of Labor Statistics will be the rate by which to define the increase
in the minimum wage
179 - 4 Notice, Posting and Records.
(a) Notice to Employees. Every employer shall post in a conspicuous place at any workplace or
Job site where any 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.
179 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 ake appropriate steps to enforce this chapter;
and may investigate and issue a response to the complaint within fifteen (15) work day
following the receipt of a complaint. The City Manager's or his or her designee's response to
the complaint shall be final.
(c) If the Cily Manager finds that a violation of this chapter has occurred, he or she may_order
any 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 subiect to the
eneral penalty provisions of Bangor's city code.
(d) In the alternative, any Employee mag 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 and expenses owed under this chapter.
179 - 6 Relationship To Other Requirements.
This ordinance provides for payment of minimum wage rates within the City and shall not be
construed to preempt or otherwise limit or affect the applicability of any other law, regulation,
requirement or policyprovides for payment of higher wages and/or benefits. Nothing contained in
this ordinance prohibits an employer from paying more than the minimum wage rates established herein.
179 7 Severability Clause.
15-246
JULY 13, 2015
If any section, paragraph, sentence, word or phrase of this ordinance is for any reason held to be
invalid or unenforceable by M court, such decision shall not affect the validity of the remaining
provisions of this ordinance.
Additions underlined.
IN CITY COUNCIL
JULY 13, 2015
FIRST READING
CITY CLERR
IN CITY COUNCIL
JULY 27, 2015
MOTION MADE AND SECONDED TO REFER TO THE BUSINESS AND ECONOMIC
DEVELOPMENT COMMITTEE MEETING OF AUGUST 18, 2015 AND TO MOVE BACK
TO THE CITY COUNCIL MEETING OF NOVEMBER 23, 2015
MOTION DOUBTED
VOTE: 6-3
COUNCILORS VOTING YES: BALDACCI, BLANCHETTE, FAIRCLOTH, GRAHAM,
SPRAGUE, DURGIN
COUNCILORS VOTING NO: CIVIELLO, NEALLEY, PLOURDE
MOTION PASSED
CITY CLERK
IN CITY COUNCIL
NOVEMBER 23, 2015
MOTION MADE AND SECONDED TO POSTPONE TO THE DECEMBER 14, 2015 CITY
COUNCIL MEETING
POSTPONED
CITY CLERK
SEE NEXT PAGE
IN CITY COUNCIL
DECEMBER 14, 2015
MOTION MADE AND SECONDED TO AMEND BY SUBSTITUTION ORDER 15-246
WITH AMENDMENTS CHANGING THE EFFECTIVE DATE TO JULY 1, 2016, AND
TREATING ALL EMPLOYEES WQUAL INCLUDING TIPPED WORKERS, WORKERS UNDER
18 YEARS OF AGE AND EMPLOYEES OF BUSINESSES WITH UNDER FOUR EMPLOYEES
MOTION DOUBTED
VOTE; 4-5
COUCILORS VOTING YES; BALDACCI, GRAHAM, NICHOLS, FAIRCLOTH
COUCILORS VOTING NO; DURGIN, NEALLEY, PERRY, PLOURDE, SPRAGUE
MOTION FAILED
MOTION MADE AND SECONDED TO AMEND BY SUBSTITUTION ORDER 15-246
WITH AMENDMENTS CHANGING THE EFFECTIVE DATE OF JANUARY 1, 2017
CORECT A TYPO OF 2029 TO 2020 PUT TIPPED WORKERS AT 50% AND INCLUDE
ALL WORKERS UNDER 18 AND BUSINESSES OF ALL SIZES
VOTE; 7-2 COUNCILORS VOTING YES; BALDACCI, GRAHAM, NICHOLS, PERRY, PLOURDE,
SPRAGUE, FAIRCLOTH
COUNCILORS VOTING NO; DURGIN, NEALLEY
AMENDMENT PASSED
MOTION MADE AND SECONDED FOR PASSAGE OF ORDER 15-246 AS AMENDED
VOTE; 7-2
COUNCILORS VOTING YES; BALDACCI, GRAHAM, NICHOLS, PERRY, PLOURDE,
SPRAGUE, FAIRCLOTH
COUNCILORS VOTING NO; DURGIN, NEALLEY
PASSED
CITY CLERK