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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 BA 2015 NC`.f: CITY OF BANGOR o -F n. �R4/ED�F� (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