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HomeMy WebLinkAboutStaff Report 6.F 07/15/2019DATE: July 15, 2019 TO: Honorable Mayor and Members of the City Council through City Mana �L) FROM: Ingrid Alverde, Economic Development Manager Nancy Sands, Economic Development Specialist Eric Danly, City Attorney SUBJECT: Consideration and Possible Introduction (First Reading) of an Ordinance Establishing Minimum Wages to be Paid to Workers in Petaluma RECOMMENDATION It is recommended that the City Council consider and potentially introduce an ordinance establishing minimum wages to be paid to workers in Petaluma. BACKGROUND On April 8, 2019, the City Council held a workshop to discuss a local minimum wage ordinance being proposed by North Bay Jobs with Justice (NBJJ), a local workers' rights and labor advocacy group. The primary components of the ordinance proposed by NBJJ would accelerate the state timelines (set by SB 3, Leno, codified in Labor Code section 1182.12) for reaching a $15.00 per hour minimum wage. The proposed ordinance would also establish a requirement for annual minimum wage increases based on the Consumer Price Index (CPI) for the San Francisco -Oakland -San Jose Consolidated Metropolitan Statistical Area. Since 2015, organizations like NBJJ and its partners have worked with other cities such as Emeryville and Redwood City to pass local minimum wage ordinances. NBJJ has made similar requests of other North Bay jurisdictions including the cities of Cotati, Sebastopol, Santa Rosa, Novato, and Sonoma. After receiving input from constituents representing both sides of the issue, Council directed staff to conduct additional research to address issues raised in the workshop and, after doing so, prepare an ordinance for consideration. The Council expressed interest in adopting an ordinance that aligned with those in other North Bay jurisdictions, so that there is a unified wage for this region. In response to this direction from the City Council, staff have shared a draft of the staff - recommended ordinance attached to this staff report with the other Sonoma County cities, except for Sonoma, which,has already adopted a local minimum wage. Council members identified the following areas for follow-up: • Timeline to $15.00 per hour • Implementation • Enforcement, Remedies, and Penalties • Credits or exemptions for employers who provide health insurance; inexperienced employees (learners); home:health workers; or tips. DISCUSSION Timeline to $15. 00 per hour and Subsequent Increases SB 3 raises the wage by $1 annually until it reaches $15.00 per hour for all employers, after which time the minimum wage is annually adjusted based on the Consumer Price Index for the San Francisco -Oakland -San Jose Consolidated Metropolitan Statistical Area. "Large" employers—defined by SB 3 as employers with 26 or more employees—would reach $15.00 per hour on January 1, 2022. "Small" employers—defined as employers with 25 or fewer employees—would reach $15.00 per hour on January 1, 2023. Under SB -3, the state minimum wage escalations based on CPI first take effect in January 2024 and occur annually thereafter. SB -3 also sets an annual cap on CPI adjustments at 3.5% and provides that in years when the CPI adjustment would be negative, no minimum wage adjustment will occur. Council members expressed a desire to accelerate the minimum wage increases that would occur under SB 3 with a Petaluma ordinance that would be effective as soon as possible, taking into account the time needed to develop an ordinance and for outreach to business. The Council also indicated that the Petaluma ordinance should have a two-tiered approach to wage increases, aligned with the state's definition of Large Employer and Small Employer. In June 2019, NBJJ recommended minimum wage increases that would impose on Large employers (with 26 or more employees) a $15.00 per hour minimum wage effective January 1, 2020, with annual cost of living (COLA) increases starting January 1, 2021; and that would impose on Small employers (with 25 or fewer employees) a $14.00 per hour minimum wage effective January 1, 2020, and moving to the same wage as Large employers starting January 2021 (see tables below). After considering factors such as enforcement costs and the potential long-term negative impact of higher minimum wages on job creation/retention, staff developed a wage structure based on NBJJ's model but with three important differences: 1) Employers who pay at least $1.50 per hour for employee medical benefits would be eligible for a $1.50 per hour credit for wages paid to Petaluma employees as part of their compensation. Employers who take this credit would need to make sure that they are still meeting state minimum wage requirements. 0) 2) After January 1, 2021, when Petaluma minimum wages would reach $15.00 per hour for all employers, regardless of number of employees, the Petaluma minimum wage would stay at $15 per hour (like the state minimum wage) until the state's COLA increases take effect, i.e., January 1, 2024, for all employers. (see tables below). 3) There would be an automatic repeal of the ordinance on January 1, 2023 (once the state minimum wage for all employers catches up with the Petaluma minimum wage for all employers and state CPI adjustments begin). With the repeal, enforcement would again be the state's responsibility, rather than the City's. This proposal accomplishes the Council's goal of accelerating the state's timeline for reaching a $15.00 per hour minimum wage while allowing employers time to plan for COLA increases. The $1.50 medical benefits credit is designed to encourage employers to offer these benefits to employees. Synchronizing Petaluma minimum wages with those of the state, and state COLA increases, and automatic repeal of the Petaluma ordinance once state minimum wages and CPI adjustments have caught up, will eliminate the need for the City to manage this program long- term, which will allow City staff to focus on other City priorities and reduce the City's overall enforcement costs. This approach also preserves an equal playing field among all businesses in the state going forward, avoiding penalizing Petaluma employers in comparison with other state employers. Alternative Timeline Option Alternatively, the Council may choose to implement the proposed Ordinance with the Minimum Wage escalations proposed by NBJJ [seethe column in each table labeled "Petaluma Ordinance Alternate (COLA)"]. Taking this approach will require the City to enforce minimum wages that exceed State minimum wages levels indefinitely. Without further study, we cannot be sure that this would not threaten Petaluma's.job and business market with wages that are continually higher than those of other state employers. Large Business (over 25 employees) * Employers must pay state minimum wage when that is higher than the local wage with $1.50 Medical Credit. +Assumes 3.5% COLA Petaluma Ordinance Proposed (No COLA) Petaluma Ordinance Alternate (COLA) City of Sonoma (COLA in 2024) CA (COLA in 2024) Medical Benefit* No Benefit Medical Benefit* No Benefit Medical Benefit* No Benefit 2019 $12.00 2020 $13.50 $15.00 $13.50 $15.00 $13.00 $13.50 $13.00 2021 $14.00 $15.00 $14.00 $15.00 $14.00 $15.00 $14.00 2022 $15.00 $15.00 $15.00 $15.53 $15.00 $16.00 $15.00 2023 $15.00 $15.00 $15.00 $16.07 $15.50 $17.00 $15.00 2024 $15.53 $15.53 $15.53 $16.63 $16.10 $17.60 $15.53 * Employers must pay state minimum wage when that is higher than the local wage with $1.50 Medical Credit. +Assumes 3.5% COLA Small Business (25 or less employees) *Employers must pay state minimum wage when that is higher than the local wage with $1.50 Medical Credit. 'Assumes 3.5% COLA Credits and Exemptions Medical Benefits Credit As noted, the proposed ordinance includes a $1.50 per hour credit applicable to wages paid to employees who receive medical benefits toward which employers contribute at least $1.50 per hour. A similar credit is included in the minimum wage ordinance adopted by the City of Sonoma. Staff recommend this credit for the following reasons: 1) During the workshop, Council expressed a desire to offer a wage credit to employers who provide health benefits to equalize "the playing field" between employers who provide health benefits (which represents an investment in employees) and employers who do not provide health benefits. 2) A few. Petaluma businesses have told staff that without such a credit, they would need to cut or eliminate the medical benefits currently offered to employees. Including the credit is a way to preserve existing medical benefits and encourage employers to offer medical benefits. 3) It is consistent with the City's existing living wage ordinance, which includes a $1.50 medical credit. Employers will need to make sure that they meet the state's minimum wage requirements even if they are entitled to the medical benefits credit under the Petaluma ordinance. Learners Under state law, employers may pay a certain class of employees, called "learners," 85 percent of the minimum wage. The state defines learners as "Employees during their first 160 hours of 11 Petaluma Ordinance Proposed (No COLA) Petaluma Ordinance Alternate (COLA) City of Sonoma (COLA in 2024) CA (COLA in 2024) Medical Benefit* No Benefit Medical Benefit* No Benefit Medical Benefit* No Benefit 2019 $11.00 $11.00 2020 $12.50 $14.00 $12.50 $14.00 $12.00 $12.50 $12.00 2021 $13.50 $15.00 $13.50 $15.00 $13.00 $14.00 $13.00 2022 $14.00 $15.00 $14.03 $15.53 $13.50 $15.00 $14.00 2023 $15.00 $15.00 $15.00 $16.07 $15.00 $16.00 $15.00 2024 $15.53 $15.53 $15.53 $16.63 $15.53 $16.56 $15.53 *Employers must pay state minimum wage when that is higher than the local wage with $1.50 Medical Credit. 'Assumes 3.5% COLA Credits and Exemptions Medical Benefits Credit As noted, the proposed ordinance includes a $1.50 per hour credit applicable to wages paid to employees who receive medical benefits toward which employers contribute at least $1.50 per hour. A similar credit is included in the minimum wage ordinance adopted by the City of Sonoma. Staff recommend this credit for the following reasons: 1) During the workshop, Council expressed a desire to offer a wage credit to employers who provide health benefits to equalize "the playing field" between employers who provide health benefits (which represents an investment in employees) and employers who do not provide health benefits. 2) A few. Petaluma businesses have told staff that without such a credit, they would need to cut or eliminate the medical benefits currently offered to employees. Including the credit is a way to preserve existing medical benefits and encourage employers to offer medical benefits. 3) It is consistent with the City's existing living wage ordinance, which includes a $1.50 medical credit. Employers will need to make sure that they meet the state's minimum wage requirements even if they are entitled to the medical benefits credit under the Petaluma ordinance. Learners Under state law, employers may pay a certain class of employees, called "learners," 85 percent of the minimum wage. The state defines learners as "Employees during their first 160 hours of 11 employment working in occupations in which they have no previous similar or related experience. A learner may be of any age." The "learner" credit is intended to benefit employers, such as manufacturers, whose business involve complex activities that require specialized skill, or in the case of inexperienced employees, a significant investment in training. The ordinance proposed by NBJJ includes a learner credit with learner defined as an "Employee who is at least 14 but not older than 17 years of age and who is a `Learner' as defined in the California Welfare Commission Order No. 4-2001." This credit is limited to the first 160 hours of employment. In staff's proposed ordinance, staff recommend a learner credit like the one included in the NBJJ proposed ordinance, and the one adopted in the City of Sonoma's ordinance. This type of credit would be an accommodation for the local businesses (such as restaurants and retailers) that provide "first jobs" to teenagers with little or no experience. The assumption is that most teenagers are not supporting themselves financially; thus, the slightly lower minimum wage would not affect quality of life or health in the same way that a lower minimum wage would affect a self-supporting adult. Overtime wages for home care workers At the workshop, a request was made to make an exemption for overtime wages paid to employees in certain job classifications. This request was made by a home care business whose workers provide 24-hour care to clients and thus are paid overtime. This business indicated that it would be difficult for them to absorb the cost of a minimum wage increase because the overtime pay would make increase costs exponentially. The City lacks the legal authority to create such an exemption. Overtime is set by both state and federal law. After 8 hours on any workday or 40 hours in any workweek, time and a half must be paid based upon the regular hourly rate paid to employees. There some exemptions written into the state/federal laws, but nursing home/home care workers are not covered under these exemptions. Local minimum wages like that proposed for Petaluma may exceed federal and state minimums but cannot be less than federal or state minimum wage requirements. Local minimum wages that are less than federal or state minimum wages would be unlawful and preempted. Tip credit At the workshop, it was unclear whether tips could or should be counted as part of the minimum wage. After the workshop, NBJJ clarified that under state law, no tip credit on discretionary tips (provided by the customer) is permitted for restaurant and food service workers by state law. The ordinance recommended by staff and which has been based on,the NBJJ proposed ordinance prohibits crediting tips against minimum wages set by the ordinance. Differences from the NBJJ model In addition to the medical credit and the COLA increases, some additional differences between the proposed Petaluma ordinance and the model proposed by NBJJ: 1) Recitals were added to show the legal authority for local minimum wage laws that differ from the federal and state minimum wages. Implicit in this legal authority is the responsibility for the City to enforce the ordinance. 2) The staff draft does not count employers' non -Petaluma employees in determining employer size, which in turn determines how quickly employers need to pay $15/hour. The purpose is to avoid penalizing regional businesses with Petaluma branches (e.g., Copperfields Books, Sole Desire, and others). 3) We preserved the proposed private right of action, with attorney's fees recovery, but made several changes intended to prevent litigation against the City to force enforcement actions the City may not want to take. We made the City's role in providing employers sample employee notices non -mandatory (even though we would fully intend to provide such notices) to avoid a City duty enforceable by third parties. We also added a provision stating that the ordinance does not create City duties, again to avoid third party enforcement. 4) We integrated the City's existing administrative enforcement remedies in the municipal code to add enforcement options and avoid duplication in the code. 5) We added a section in the proposed ordinance stating that the minimum wage requirements do not preempt other, higher wage obligations that may exist for some employers under regulation or contract (e.g., prevailing wages or union contracts). In the same section we provided that the City's Living Wage ordinance continues in effect (because its wages are more generous than those under the minimum wage ordinance), and employers that are subject to both ordinances must pay whichever applicable wage is higher. Implementation As discussed in the workshop staff report and at the workshop, staff will need to develop a plan for implementing the final ordinance, both initially and on an annual basis. Existing Petaluma employers will need to be made aware of their obligations when the final ordinance is adopted and each year, to facilitate compliance with the new minimum wages. New Petaluma employers will also need to be made aware of the local minimum wage requirements, ideally as part of the City business license process. Printed and online materials will can help ensure that employers and employees are aware of their obligations and/or rights. The City's implementation plan also might include one-to-one business advising and/or workshops for employers who are concerned about meeting the requirements. To the extent possible, staff would leverage existing County and State resources (such as the Small Business Development Center) to support implementation of the City's minimum wage requirements. Enforcement, Penalties, and Remedies 0 During the workshop, Council raised questions and provided direction related to enforcement of a local minimum law. One question pertains to the City's responsibility for enforcement. Staff have confirmed that, as with other city ordinances, the City would be responsible for enforcing a minimum wage ordinance. The State is responsible for enforcing its minimum wage laws, but not local minimum wage laws. Council expressed a desire to take a conciliatory approach to enforcement. In this approach, upon receiving a wage complaint, the City would work with the employer in a friendly and informal way, focusing on cooperation and compliance rather than punishment or penalties. Staff would take punitive action only if the complaint could not be resolved in a reasonable way or timeframe. This is the approach taken by other cities, and by all accounts it is an effective way to ensure employees are getting paid the minimum wage while maintaining the City's relationship with the employer community. The staff draft ordinance preserves the City's ability to take this conciliatory approach to enforcement and expressly reserves to the City the right to enforce the ordinance informally. Also, as previously noted, the staff draft ordinance includes provisions intended to prevent third parties from bringing actions against the City to force enforcement by the City or enforcement of a particular type, which further helps protect the City's ability to take a cooperative approach to enforcement. Before and after the workshop, staff discussed enforcement strategies and best practices with representatives from the cities of El Cerrito, Redwood City, Emeryville, and San Jose. Based on our research, staff recommend that we follow the complaint -driven model and use a combination of staff resources and a wage compliance firm to handle complaints. Depending on workload and complaint complexity, staff may handle complaints inhouse or work with a firm to reach resolution. PUBLIC OUTREACH Input about the minimum wage proposal was solicited from the employer community in several ways. In advance of the workshop held on April 8, 2019, staff contacted local employers and business groups; included information about the workshop in the Economic Development Division's quarterly newsletter; and assisted the Petaluma Downtown Association in preparing a survey sent to its members. In the months between the workshop and the first reading, staff again contacted leaders of the Petaluma Area Chamber of Commerce and the Petaluma Downtown Association/Tourism Improvement DistrictNisitor Program. These leaders were encouraged to let constituents know about the workshop outcome and first reading date. Staff submitted an article to the Chamber for its July 2019 newsletter and shared information about the first reading via social media. Staff also contacted employers who had expressed opposition to the ordinance in an effort to understand their concerns. Finally, per Council direction to garner a more regional approach, staff consulted with jurisdictions who have or are considering a minimum wage ordinance. This included exchanging 7 information about best practices and sharing our proposed ordinance with neighboring jurisdictions with the goal of encouraging consistency throughout the region. FINANCIAL IMPACTS Financial Impacts to the City as an Employer Since the workshop, staff have confirmed that the financial impacts to the City as an employer would be minimal, at least for the first few years the ordinance is in place. Most City employees are covered under the City's living wage ordinance (currently about $18.12 per hour, with annual COLA increases). The exceptions are part-time, seasonal staff hired by the City's Parks & Recreation Division. The number of people hired to fill those job titles may vary from year-to- year but tend to be less than 12 per season. Based on an analysis of payroll costs from 5/25/2018 to 9/14/2018, it is estimated that the payroll costs will increase approximately $13,000 during the first summer after the $15.00 per hour wage requirement goes into effect. Additional costs after that year will be incurred when the State's COLA increases take effect; the City will be responsible for these costs regardless of whether a minimum wage ordinance is passed. Financial Impacts to the City for Implementation & Enforcement Staff recommend a $20,000 annual budget for minimum wage ordinance implementation and enforcement. This amount considers conversations .with representative from other cities and compliance consultants who manage minimum wage enforcement. For example, El Cerrito, a city with about 13,000 jobs, adopted a minimum wage ordinance in 2016. It handles enforcement of this ordinance through a combination of staff time and outsourcing to a wage compliance consultant. The program manager reports that, since 2016, the city has received 2 wage complaints, which in total cost about $5,000 to handle. Another example is Redwood City, with 46,000 jobs within its City limits, compared to Petaluma's 30,000. It adopted a minimum a wage ordinance that took effect on January 1, 2019 and is outsourcing enforcement to the City of San Jose's Fair Labor Board. The city has budgeted $30,000 annually for enforcement. Based on the small number of cases handled thus far, the program manager believes its enforcement costs will come in well under budget. Staff can make necessary budget adjustments to cover these costs during the first quarter budget adjustment. ATTACHMENTS 1. Proposed Minimum Wage Ordinance 2. Alternate Minimum Wage Ordinance 3. Input from Community Members Attachment 1 Ordinance -N.C.S AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA ESTABLISHING MINUMUM WAGES TO BE PAID BY EMPLOYERS IN THE CITY OF PETALUMA WHEREAS, the Fair Labor Standards Act of 1938, 29 U.S.C. Section 201 and following, ("FLSA") establishes a national minimum wage, which was last set effective July 25, 2009 at $7.25 per hour, which amount remains the federal minimum wage currently in effect pursuant to Section 206 of the FLSA; and WHEREAS, Section 218 of the FLSA expressly permits state and, municipal governments to set minimum wages that are higher than the federal minimum wage; and WHEREAS, California has exercised the authority granted by Section 218 of the FLSA and adopted a state-wide minimum wage, currently set at $12 per hour for employers with 26 or more employees, and $11 per hour for employers with 25 or fewer employees, pursuant to Labor Code Section 1182.12; and WHEREAS, Labor Code Section 1182.12 provides that California minimum wages for employers with 26 or more employees will increase to $13 per hour on January 1, 2020, to $14 per hour on January 1, 2021, and to $15 per hour on January 2022, and that minimum wages for employers with 25 or fewer employees will increase to $12 per hour on January 12020, to $13 per hour on January 1, 2021; to $14 per hour on January 1, 2022, and to $15 per hour on January 1, 2023; and WHEREAS, Labor Code Section 1182.12 provides that beginning in August, 2023, and each August thereafter, the Director of Finance shall calculate an adjusted minimum wage increasing the minimum wage established in Section 1182.12 by 3.5 percent or the change in CPI as specified, whichever adjustment is less, rounded up to the nearest ten cents, to take effect the following January 1; except that, if the change in CPI is negative, the minimum wage is to remain unchanged the following January; and WHEREAS, Labor Code Section 1205(b) expressly permits local agencies to exercise their police power to establish local minimum wages that are higher than the state minimum wage; and WHEREAS, Labor Code Section 1197 provides that the minimum wage fixed by the Labor Commission or by any applicable state or local law is the minimum wage to be paid to employees, and the payment of a lower wage than the applicable minimum wage is unlawful; and Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 WHEREAS, North Bay Jobs with Justice, the North Bay Central Labor Council, and the Napa-Solano Central Labor Council commissioned a 2018 report from the Center for Labor Research and Education, University of California, Berkeley, entitled "Estimated Impact of a Proposed Minimum Wage Law for the North Bay" ("Report") written by Ian Perry, Garret Strain and Ken Jacobs, to analyze the prospective impact of a proposed $15 per hour citywide minimum wage by 2020 for the cities of Novato, Petaluma, Sonoma, Sebastopol and Santa Rosa ("Proposed Minimum Wage"); and WHEREAS, the Report finds that of the minimum wage workers that would be affected by the Proposed Minimum Wage, 6.4 percent would be teenagers; more than 50% would be thirty years old or older, 60 percent would be of black, Latinx, Asian, and other non-white ethnicity; 50 percent would have some college experience; 15 percent would hold a bachelor's or higher degree; and that the affected workers' median annual earnings are only half that of the overall North Bay workforce, and make up half of their family income; and WHEREAS, according to the Report, the industries employing most of the workers that would be affected by the Proposed Minimum Wage are the retail industry, employing 17.1 percent of the workers, food services, employing 12.9 percent of the workers, and health services, employing 8.4 percent of the workers; and WHEREAS, the Report notes that minimum wage laws have large, positive effects on workers' pay and their families' living standards, citing studies indicating that family income is a determinant of health, and that improving incomes results in positive effects on psychological wellbeing, children's birthweights and infant mortality, and that income affects access to safe housing, a healthy environment, healthy food, and healthcare services; and WHEREAS, the Report concludes that minimum wage increases within the range of the Proposed Minimum Wage lead to net gains in worker earnings, have. no negative effect on employment and can reduce workplace turnover and increase job stability; and WHEREAS, the City Council in enacting this ordinance is exercising its police power as a California charter city pursuant to Article XI, sections 5 and 7 of the California Constitution, pursuant to the Petaluma City Charter, and the authority for local minimum wage regulations granted in 29 U.S.C. Section 218, and California Labor Code Sections 1197 and 1205(b); and WHEREAS, this ordinance is not a project which has the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment as defined in the California Environmental Quality Act, Public Resources Code Section 21000 and following ("CEQA"), pursuant to Section 15378 of the CEQA Guidelines, 14 CCR Section 15000 and following, because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma, and therefore the requirements of CEQA do not apply to this ordinance; and Petaluma Minimum Wage Ordinance Ordinance N.C.S. 2 Attachment 1 WHEREAS, if this ordinance is nonetheless found to be a project as defined in CEQA, this ordinance is exempt from the requirements of CEQA pursuant to the common sense exception that CEQA only applies to projects which have the potential for causing a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA, in accordance with Section 15061(b)(3) of the CEQA Guidelines, because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma; NOW, THEREFORE, be it ordained by the Council of the City of Petaluma as follows: Section 1. Recitals Made Findings. The above recitals are hereby declared to be true and correct and incorporated into this ordinance as findings of the City Council. Section 2. CEQA Does Not Apply or Ordinance is Exempt. This ordinance is either not a project subject to the requirements of CEQA in accordance with Section 1537 of the CEQA Guidelines, or, in the alternative, this ordinance is exempt from the requirements of CEQA in accordance with Section 15061(b)(3) of the CEQA Guidelines because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma. Section 3. New Chapter 8.35 Established. A new Chapter 8.35 entitled "Minimum Wage" is hereby added to the Petaluma Municipal Code, to read as follows: Section 8.35.010 Definitions. As used in this chapter, the following capitalized terms are defined as follows: "Employee" means any Person who A. In a particular week performs at least two (2) hours within the city for an Employer, and B. Qualifies as an employee entitled to payment of a minimum wage from any employer in accordance with Sections 1182.12 and 1197 of the California Labor Code and any successor statutes as in effect on and after the effective date of this chapter and as from time to time amended. "Employer" means any Person, including corporate officers or executives, who directly or indirectly (including through the services of a temporary service or staffing agency or similar entity), employs or exercises control over the wages, hours, or working conditions of any Employee. Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 "Learners" means Employees who are at least fourteen (14) years of age but not more than seventeen (17) years of age during their first one -hundred -and -sixty (160 ) hours of employment in occupations in which they have no previous similar or related experience. "Person" means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign. "Person" includes the City. Section 8.35.020 Covered Employee Hours. Employees will be entitled to receive the minimum wages specified in this chapter for hours of work within the city, excluding time spent in the city solely for the purposes of travelling through the city from a point of origin outside the city to a destination outside the city with no employment-related stops in the city other than for refueling, or for an Employee's personal meals or errands. Section 8.35.030 Minimum Wages. A. Effective January 1, 2020, Employers who employ twenty-six (26) or more Employees shall pay Employees not less than $15.00 per hour. B. Effective January 1, 2020, Employers who employ twenty-five (25) or fewer Employees shall pay Employees not less than $14.00 per hour. C. Effective January 1, 2021, Employers who employ twenty-five (25) or fewer Employees shall pay Employees not less than $15.00 per hour. D. Learners shall be paid not less than eighty-five (85) percent of the minimum wage required in accordance with this section rounded to the nearest $.05. E. Employers that pay at least $1.50 per hour toward an Employee medical benefits plan which allows Employees to receive Employer -compensated care from a licensed physician shall pay Employees not less than the applicable minimum wage specified in this section less $1.50 per hour. F. In calculating the number of Employees an Employer employs for purposes of determining the applicable minimum wage pursuant to this section, the number of Employees shall include Employees employed by an Employer within the city, including all Employees working for the Employer on a full-time, part-time, or temporary basis. Petaluma Minimum Wage Ordinance Ordinance N.C.S. 0 Attachment 1 G. Employers may not deduct any amount from wages due Employees pursuant to this section based on any tip or gratuity, or credit any amount of any tip or gratuity against or as any part of the minimum wages due Employees pursuant to this section. Section 8.35.040 Collective Bargaining Agreement Waivers. Bona fide collective bargaining agreements may waive all or any portion of the requirements of this chapter, but only if the waiver is explicitly set forth in the agreement in clear and unambiguous terms. Unilateral implementation of the terms and conditions of employment by either party to a collective bargaining agreement may not operate as a waiver of any requirements of this chapter. Section 8.35.050 No Other Waivers of This Chapter. Except for waivers in accordance with section 8.35.040, waiver of any requirement of this chapter by any Employee shall be deemed contrary to public policy, void and unenforceable. Any attempt by an Employer to cause Employees to waive any of their rights under this chapter shall constitute a violation of this chapter subject to enforcement in accordance with section 8.35.070. Section 8.35.060 Retaliatory Actions Prohibited. Any of following actions taken by an Employer concerning an Employee may be deemed retaliatory and a violation of this chapter subject enforcement in accordance with section 8.35.070: A. Discharging, reducing the compensation of, taking adverse action against or otherwise discriminating against any Employee for opposing any practice proscribed by this chapter, for participating in proceedings related to this chapter, for seeking to enforce his or her rights under this chapter by any lawful means, or for otherwise asserting rights under this chapter. B. Funding minimum wages required by this chapter by reducing wages paid to any Employee or by increasing charges to Employees for parking, meals, uniforms or other items. An Employer's taking adverse action against an Employee within one -hundred -twenty days of the Employee's exercise of rights under this chapter shall raise a rebuttable presumption that the adverse action is retaliatory and in violation of this chapter. To rebut the presumption, Employers must establish that the adverse action occurred for legitimate business reasons. Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 Section 8.35.070 Remedies and Enforcement. A. Private Right of Action. The city and any Person aggrieved by a violation of this chapter (or the aggrieved Person's representative), may bring a civil action against any Employer for violation(s) of this chapter in a court of competent jurisdiction to enforce the provisions of this chapter. Successful plaintiffs in actions pursuant to this paragraph shall be entitled to such remedies specified in paragraph E of this section as the court may order to enforce this chapter, and to an award of reasonable attorney's fees, witness fees and costs of litigation. B. Administrative Enforcement. 1. Reporting Violations. An Employee, an Employee's representative, or any other Person may report any suspected violation of this chapter to the city. The city will keep the identity of the Person, reporting the violation confidential to the extent permitted by law, except as necessary to enforce or permit enforcement of this chapter or other applicable law. 2. Informal Resolution. The city may in the city's sole discretion seek informal resolution of complaints of violations of this chapter. 3. Violations a Nuisance. Violations of this chapter are hereby declared to be public nuisances in accordance with Chapter 1.10 of this code, and subject to enforcement in accordance with Chapter 1. 10, Code Enforcement Generally, Chapter 1. 13, Violations Enforced by Civil Action, Chapter 1.14 , Administrative Enforcement, and Chapter 1. 16, Administrative Citations, of this code. 4. Business License Revocation. The city business licenses of Employers in violation of this chapter are subject to suspension or revocation in accordance with section 6.01.350 of this code. C. Remedies for Violations. In addition to the remedies listed above in this section, remedies available for violations of this chapter include, but are not limited to, the following: 1. Award of any back wages unlawfully withheld, and payment of an additional sum as a civil penalty in the amount of fifty dollars ($50.00) for each Employee whose rights under this chapter were violated for each day or portion thereof that the violation occurred or continued. 2. Award of interest on all due and unpaid wages at the legal rate of interest of ten (10) percent per annum; or, if award of interest at the rate of ten (10) percent per annum is not legally permitted, award of interest at the maximum legally - permitted rate up to but not exceeding ten (10) percent per annum. Interest shall Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 accrue from the date that the wages were due and payable as provided in Part 1 of Division 2 of the California Labor Code (commencing with Section 200) up to and including the date immediately before the date when the wages were paid in full 3. Injunctive relief that is within the jurisdiction of the adjudicatory authority presiding over the proceedings. 4. For Employees aggrieved by termination, demotion other adverse action in retaliation for exercise of Employees' rights pursuant to this chapter in violation of section 8.35.060, in addition to the remedies above, reinstatement and return of the Employee to the status quo ante, and an award of treble the wages lost due to the violation. D. No Cause of Action Against the City. To the maximum extent permitted by law, nothing in this chapter may be construed to create a cause of action against the city, or a basis for seeking an award of attorney's fees against the city pursuant to the private attorney general's statute in California Code of Civil Procedure Section 1021.5 or on any other basis arising from or related to an Employer's alleged violation of the requirements of this chapter, and/or based on or related to the city's prosecution or enforcement or alleged failure to prosecute or enforce such alleged violation, and/or based on or related to the city's implementation or alleged failure to implement the requirements of this chapter. Section 8.35.080 Notice and Records Retention. A. Initial Notice of Employee Rights. Within one (1) week of this chapter taking effect, each Employer shall give written notice to each Employee of Employees' rights pursuant to this chapter. Each Employer shall give the same notice to each new Employee within one (1) week of the start of each new Employee's employment. The notice pursuant to this paragraph shall be in each language spoken by more than ten (10) percent of an Employer's Employees and shall be posted in a conspicuous place at each workplace or job site where any Employee of that Employer works. The city may provide Employers sample notices pursuant to this paragraph and Employers' use of such sample notices in accordance with this paragraph will satisfy the requirements of this paragraph. B. Annual Notice of Employee Rights. Prior to January 1 of each year, the city may publish and make available to Employers a notice suitable for posting in the workplace informing Employees of the applicable minimum wage rates in effect pursuant to this chapter beginning January 1 of that year and of Employees' rights pursuant to this chapter. Any notice pursuant to this paragraph will be in English, Spanish and such other languages as provided in any administrative regulations Petaluma Minimum Wage Ordinance Ordinance N.C.S. 7 Attachment 1 promulgated pursuant to section 8.35.130 of this chapter. Each Employer shall post any notice pursuant to this paragraph in a conspicuous place at each workplace or job site where any Employee of that Employer works. C. Initial and Annual Notice Regarding Employee Inquiries. Each Employer shall provide each Employee, upon hiring and annually, written notice including the Employer's legal name, address, telephone number, and the name and contact information for an Employer representative responsible for inquiries concerning compliance with this chapter. D. Employer Records Retention. Each Employer shall maintain a record of each Employee's name, his or her hours worked, and pay rate. Such records shall be retained for at least a three-year period. Each Employer shall provide to each Employee or each Employee's representative a copy of the records required to be maintained concerning that Employee pursuant to this paragraph upon request during normal business hours. Failure of an Employer to maintain and provide records in accordance with this paragraphs shall raise a rebuttable presumption that an Employee's account of how much he or she was paid in any proceeding to enforce the provisions of this Chapter is accurate, which presumption may be rebutted by competent evidence to the contrary. E. Remedy for Violations of this Section. Employers that violate the requirements of this section shall be subject to administrative citation in accordance with section 8.35.070, paragraph (b)(3) of this chapter, and chapter 1.16 of this code. F. City Failure to Give Notice. Failure by the City to provide notice as permitted pursuant to this section shall not create a basis of liability of the City for any reason or purpose, and shall not be a defense to any Employer's alleged failure to pay minimum wages or to otherwise fully comply with the requirements of this chapter. Section 8.35.090 No City Duty Created. The purpose of this chapter is to establish minimum wages Employers must pay Employees for hours Employees work in the city, and to establish remedies that Employees and their representatives and the city may seek for alleged Employer violations of this chapter. This chapter is not intended to create, and may not be construed so as to create, any city duty to implement or enforce the requirements of this chapter. Section 8.35.100 No Limit on Employees' Other Employment Relief. The provisions of this chapter shall not be construed so as to limit an Employee's rights to obtain any other relief to which he or she may be entitled at law or in equity concerning that Employee's employment. Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 Section 8.35.110 No Derogation of Other Wage or Employment Rights, Including Rights under the City's Living Wage Chapter. The minimum wage requirements of this chapter are not intended to preempt and may not be construed to preempt any additional or more generous wage or other employment requirements that apply by regulation, contract or otherwise to Employees working in the city. In particular, this chapter does not amend or otherwise affect the city's living wage requirements codified in Chapter 8.36 of this code. Employers that are subject to this chapter and that are also subject Chapter 8.36 must to the fullest possible extent comply with all applicable requirements in both Chapters 8.35 and 8.36 of this code. Nothing in this chapter excuses Employers' full compliance with all applicable requirements of the city's living wage requirements in Chapter 8.36 of this code, and nothing in Chapter 8.36 excuses full compliance with all applicable minimum wage requirements of this chapter. To the extent wages Employers owe Employees under this chapter and under Chapter 8.36 of this code differ, Employers must pay Employees the higher applicable wage. Section 8.35.120 Savings. This chapter shall be construed and applied so as to harmonize to the maximum, legally permissible extent with all applicable federal, state and local law. To the maximum, legally permissible extent, nothing in this chapter shall be construed or applied so as to create a prohibited conflict with any federal, state or local laws or regulations. Section 8.35.130 Administrative Regulations. The city manager is hereby authorized to promulgate regulations consistent with the provisions of this chapter for the implementation and enforcement of this chapter, and any regulations so promulgated by the city manager hereunder shall have the force and effect of law. Employers and Employees and other parties may rely on such regulations to determine their rights and responsibilities under this chapter. Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases may be held unconstitutional, invalid, or unenforceable. Section 5. Effective Date/Referendum Period. This ordinance shall become effective thirty (3 0) days after the date of its adoption by the Petaluma City Council. Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 1 Section 6. Posting/Publishing of Notice. The City Clerk is hereby directed to post and/or publish this ordinance or a synopsis of it for the period and in the manner required by the City Charter. The City Clerk is also hereby directed to file a Notice of Exemption concerning this ordinance with the Office of the Sonoma County Clerk in accordance with Section 15062 of the CEQA Guidelines. Section 7. Expiration and Repeal. Unless amended to extend its term or to otherwise remain in effect this ordinance shall expire, cease. to be in effect and be automatically repealed without further action of the City Council effective on January 1, 2023 upon minimum wages of fifteen - dollars ($15.00) per hour taking effect for California employers with 25 or fewer employees in accordance with California Labor Code Section 1182.12. INTRODUCED and ordered posted/published this day of , 2019. ADOPTED this day of , 2019 by the following vote: Petaluma Minimum Wage Ordinance Ordinance N.C.S. 10 Attachment 2 Ordinance -N.C.S AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA ESTABLISHING MINUMUM WAGES TO BE PAID BY EMPLOYERS IN THE CITY OF PETALUMA WHEREAS, the Fair Labor Standards Act of 1938,29 U.S.C. Section 201 and following, ("FLSA") establishes a national minimum wage, which was last set effective July 25, 2009 at $7.25 per hour, which amount remains the federal minimum wage currently in effect pursuant to Section 206 of the FLSA; and WHEREAS, Section 218 of the FLSA expressly permits state and municipal governments to set minimum wages that are higher than the federal minimum wage; and WHEREAS, California has exercised the authority granted by Section 218 of the FLSA and adopted a state-wide minimum wage, currently set at $12 per hour for employers with 26 or more employees, and $11 per hour for employers with 25 or fewer employees, pursuant to Labor Code Section 1182.12; and WHEREAS, Labor Code Section 1182.12 provides that California minimum wages for employers with 26 or more employees will increase to $13 per hour on January 1, 2020, to $14 per hour on January 1, 2021, and to $15 per hour on January 2022, and that minimum wages for employers with 25 or fewer employees will increase to $12 per hour on January 12020, to $13 per hour on January 1, 2021; to $14 per hour on January 1, 2022, and to $15 per hour on January 1, 2023; and WHEREAS, Labor Code Section 1182.12 provides that beginning in August, 2023, and each August thereafter, the Director of Finance shall calculate an adjusted minimum wage increasing the minimum wage established in Section 1182.12 by 3.5 percent or the change in CPI as specified, whichever adjustment is less, rounded up to the nearest ten cents, to take effect the following January 1; except that, if the change in CPI is negative, the minimum wage is to remain unchanged the following January; and WHEREAS, Labor Code Section 1205(b) expressly permits local agencies to exercise their police power to establish local minimum wages that are higher than the state minimum wage; and WHEREAS, Labor Code Section 1197 provides that the minimum wage fixed by the Labor Commission or by any applicable state or local law is the minimum wage to be paid to employees, and the payment of a lower wage than the applicable minimum wage is unlawful; and Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 2 WHEREAS, North Bay Jobs with Justice, the North Bay Central Labor Council, and the Napa-Solano Central Labor Council commissioned a 2018 report from the Center for Labor Research and Education, University of California, Berkeley, entitled "Estimated Impact of a Proposed Minimum Wage Law for the North Bay" ("Report") written by Ian Perry, Garret Strain and Ken Jacobs, to analyze the prospective impact of a proposed $15 per hour citywide minimum wage by 2020 for the cities of Novato, Petaluma, Sonoma, Sebastopol and Santa Rosa ("Proposed Minimum Wage"); and WHEREAS, the Report finds that of the minimum wage workers that would be affected by the Proposed Minimum Wage, 6.4 percent would be teenagers; more than 50% would be thirty years old or older, 60 percent would be of black, Latinx, Asian, and other non-white ethnicity; 50 percent would have some college experience; 15 percent would hold a bachelor's or higher degree; and that the affected workers' median annual earnings are only half that of the overall North Bay workforce, and make up half of their family income; and WHEREAS, according to the Report, the industries employing most of the workers that would be affected by the Proposed Minimum Wage are the retail industry, employing 17.1 percent of the workers, food services, employing 12.9 percent of the workers, and health services, employing 8.4 percent of the workers; and WHEREAS, the Report notes that minimum wage laws have large, positive effects on workers' pay and their families' living standards, citing studies indicating that family income is a determinant of health, and that improving incomes results in positive effects on psychological wellbeing, children's birthweights and infant mortality, and that income affects access to safe housing, a healthy environment, healthy food, and healthcare services; and WHEREAS, the Report concludes that minimum wage increases within the range of the Proposed Minimum Wage lead to net gains in worker earnings, have no negative effect on employment and can reduce workplace turnover and increase job stability; and WHEREAS, the City Council in enacting this ordinance is exercising its police power as a California charter city pursuant to Article XI, sections 5 and 7 of the California Constitution, pursuant to the Petaluma City Charter, and the authority for local minimum wage regulations granted in 29 U.S.C. Section 218, and California Labor Code Sections 1197 and 1205(b); and WHEREAS, this ordinance is not a project which has the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment as defined in the California Environmental Quality Act, Public Resources Code Section 21000 and following ("CEQA"), pursuant to Section 15378 of the CEQA Guidelines, 14 CCR Section 15000 and following, because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma, and therefore the requirements of CEQA do not apply to this ordinance; and Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 2 WHEREAS, if this ordinance is nonetheless found to be a project as defined in CEQA, this ordinance is exempt from the requirements of CEQA pursuant to the common sense exception that CEQA only applies to projects which have the potential for causing a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA, in accordance with Section 15061(b)(3) of the CEQA Guidelines, because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma; NOW, THEREFORE, be it ordained by the Council of the City of Petaluma as follows: Section 1. Recitals Made Findings. The above recitals are hereby declared to be true and correct and incorporated into this ordinance as findings of the City Council. Section 2. CEQA Does Not Apply or Ordinance is Exempt. This ordinance is either not a project subject to the requirements of CEQA in accordance with Section 1537 of the CEQA Guidelines, or, in the alternative, this ordinance is exempt from the requirements of CEQA in accordance with Section 15061(b)(3) of the CEQA Guidelines because this ordinance merely enacts minimum wages that must be paid to employees in the City of Petaluma. Section 3. New Chapter 8.35 Established. A new Chapter 8.35 entitled "Minimum Wage" is hereby added to the Petaluma Municipal Code, to read as follows: Section 8.35.010 Definitions. As, used in this chapter, the following capitalized terms are defined as follows: "Employee" means any Person who A. In a particular week performs at least two (2) hours within the city for an Employer, and B. Qualifies as an employee entitled to payment of a minimum wage from any employer in accordance with Sections 1182.12 and 1197 of the California Labor Code and any successor statutes as in effect on and after the effective date of this chapter and as from time to time amended. "Employer" means any Person, including corporate officers or executives, whc directly or indirectly (including through the services of a temporary service or staffing agency or similar entity), employs or exercises control over the wages, hours, or working conditions of any Employee. Petaluma Minimum Wage Ordinance Ordinance N.C.S. 3 Attachment 2 "Learners" means Employees who are at least fourteen (14) years of age but not more than seventeen (17) years of age during their first one -hundred -and -sixty (160) hours of employment in occupations in which they have no previous similar or related experience. "Person" means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign. "Person" includes the City. Section 8.35.020 Covered Employee Hours. Employees will be entitled to receive the minimum wages specified in this chapter for hours of work within the city, excluding time spent in the city solely for the purposes of travelling through the city from a point of origin outside the city to a destination outside the city with no employment-related stops in the city other than for refueling, or for an Employee's personal meals or errands. Section 8.35.030 Minimum Wages. A. Effective January 1, 2020, Employers who employ twenty-six (26) or more Employees shall pay Employees not less than $15.00 per hour. B. Effective January 1, 2020, Employers who employ twenty-five (25) or fewer Employees shall pay Employees not less than $14.00 per hour. C. Effective January 1, 2021, Employers who employ twenty-five (25) or fewer Employees shall pay Employees not less than $15.00 per hour. D. Beginning January 1, 2021, and annually thereafter, the minimum wage all Employers must pay to Employees (except as otherwise provided in this section), regardless of the number of Employees each Employer employs, will be adjusted based on the Consumer Price Index for Urban Wage Earners and Clerical Workers ("CPIW") for the San Francisco -Oakland -San Jose Consolidated Metropolitan Statistical Area (or its successor index), which is published by the U.S. Department of Labor. Beginning January 1, 2021, sometime in October of each year., the City will publicize the CPIW or successor index for that year and the adjusted minimum wage that will apply for all Employers pursuant to this section beginning January 1 of the following year. E. Learners shall be paid not less than eighty-five (85) percent of the minimum wage required in accordance with this section rounded to the nearest $.05. F. Employers that pay at least $1.50 per hour toward an Employee medical benefits plan which allows Employees to receive Employer -compensated care from a licensed Petaluma Minimum Wage Ordinance Ordinance N.C.S. 51 Attachment 2 physician shall pay Employees not less than the applicable minimum wage specified in this section less $1.50 per hour. G. In calculating the number of Employees an Employer employs for purposes of determining the applicable minimum wage pursuant to this section, the number of Employees shall include Employees employed by an Employer within the city, including all Employees working for the Employer on a full-time, part-time, or temporary basis. H. Employers may not deduct any amount from wages due Employees pursuant to this section based on any tip or gratuity, or credit any amount of any tip or gratuity against or as any part of the minimum wages due Employees pursuant to this section. Section 8.35.040 Collective Bargaining Agreement Waivers. Bona fide collective bargaining agreements may waive all or any portion of the requirements of this chapter, but only if the waiver is explicitly set forth in the agreement in clear and unambiguous terms. Unilateral implementation of the terms and conditions of employment by either party to a collective bargaining agreement may not operate as a waiver of any requirements of this chapter. Section 8.35.050 No Other Waivers of This Chapter. Except for waivers in accordance with section 8.35.040, waiver of any requirement of this chapter by any Employee shall be deemed contrary to public policy, void and unenforceable. Any attempt by an Employer to cause Employees to waive any of their rights under this chapter shall constitute a violation of this chapter subject to enforcement in accordance with section 8.35.070. Section 8.35.060 Retaliatory Actions Prohibited. Any of following actions taken by an Employer concerning an Employee may be deemed retaliatory and a violation of this chapter subject enforcement in accordance with section 8.35.070: A. Discharging, reducing the compensation of, taking adverse action against or otherwise discriminating against any Employee for opposing any practice proscribed by this chapter, for participating in proceedings related to this chapter, for seeking to enforce his or her riglits under this chapter by any lawful means, or for otherwise asserting rights under this chapter. B. Funding minimum wages required by this chapter by reducing wages paid to any Employee or by increasing charges to Employees for parking, meals, uniforms or other items. Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 2 An Employer's taking adverse action against an Employee within one -hundred -twenty days of the Employee's exercise of rights under this chapter shall raise a rebuttable presumption that the adverse action is retaliatory and in violation of this chapter. To rebut the presumption, Employers must establish that the adverse action occurred for legitimate business reasons. Section 8.35.070 Remedies and Enforcement. A. Private Right of Action. The city and any Person aggrieved by a violation of this chapter (or the aggrieved Person's representative), may bring a civil action against any Employer for violation(s) of this chapter in a court of competent jurisdiction to enforce the provisions of this chapter. Successful plaintiffs in actions pursuant to this paragraph shall be entitled to such remedies specified in paragraph E of this section as the court may order to enforce this chapter, and to an award of reasonable attorney's fees, witness fees and costs of litigation. B. Administrative Enforcement. 1. Reporting Violations. An Employee, an Employee's representative, or any other Person may report any suspected violation of this chapter to the city. The city will keep the identity of the Person reporting the violation confidential to the extent permitted by law, except as necessary to enforce or permit enforcement of this chapter or other applicable law. 2. Informal Resolution. The city may in the city's sole discretion seek informal resolution of complaints of violations of this chapter. 3. Violations a Nuisance. Violations of this chapter are hereby declared to be public nuisances in accordance with Chapter 1.10 of this code, and subject to enforcement in accordance with Chapter 1. 10, Code Enforcement Generally, Chapter 1. 13, Violations Enforced by Civil Action, Chapter 1. 14, Administrative Enforcement, and Chapter 1. 16, Administrative Citations, of this code. 4. Business License Revocation. The city business licenses of Employers in violation of this chapter are subject to suspension or revocation in accordance with section 6.01.350 of this code. C. Remedies for Violations. In addition to the remedies listed above in this section, remedies available for violations of this chapter include, but are not limited to, the following: 1. Award of any back wages unlawfully withheld, and payment of an additional sum as a civil penalty in the amount of fifty dollars ($50.00) for each Employee whose Petaluma Minimum Wage Ordinance Ordinance N.C.S. Col Attachment 2 rights under this chapter were violated for each day or portion thereof that the violation occurred or continued. 2. Award of interest on all due and unpaid wages at the legal rate of interest of ten (10) percent per annum; or, if award of interest at the rate of ten (10) percent per annum is not legally permitted, award of interest at the maximum legally - permitted rate up to but not exceeding ten (10) percent per annum. Interest shall accrue from the date that the wages were due and payable as provided in Part 1 of Division 2 of the California Labor Code (commencing with Section 200) up to and including the date immediately before the date when the wages were paid in full. 3. Injunctive relief that is within the jurisdiction of the adjudicatory authority presiding over the proceedings. 4. For Employees aggrieved by termination, demotion other adverse action in retaliation for exercise of Employees' rights pursuant to this chapter in violation of section 8.35.060, in addition to the remedies above, reinstatement and return of the Employee to the status quo ante, and an award of treble the wages lost due to the violation. D. No Cause of Action Against the City. To the maximum extent permitted by law, nothing in this chapter may be construed to create a cause of action against the city, or a basis for seeking an award of attorney's fees against the city pursuant to the private attorney general's statute in California Code of Civil Procedure Section 1021.5 or on any other basis arising from or related to an Employer's alleged violation of the requirements of this chapter, and/or based on or related to the city's prosecution or enforcement or alleged failure to prosecute or enforce such alleged violation, and/or based on or related to the city's implementation or alleged failure to implement the requirements of this chapter. Section 8.35.080 Notice and Records Retention. A. Initial Notice of Employee Rights. Within one (1) week of this chapter taking effect, each Employer shall give written notice to each Employee of Employees' rights pursuant to this chapter. Each Employer shall give the same notice to each new Employee within one (1) week of the start of each new Employee's employment. The notice pursuant to this paragraph shall be in each language spoken by more than ten (10) percent of an Employer's Employees and shall be posted in a conspicuous place at each workplace or job site where any Employee of that Employer works. The city may provide Employers sample notices pursuant to this paragraph and Employers' use of such sample notices in accordance with this paragraph will satisfy the requirements of this paragraph. Petaluma Minimum Wage Ordinance Ordinance N.C.S. 7 Attachment 2 B. Annual Notice of Employee Rights. Prior to January 1 of each year, the city may publish and make available to Employers a notice suitable for posting in the workplace informing Employees of the applicable minimum wage rates in effect pursuant to this chapter beginning January 1 of that year and of Employees' rights pursuant to this chapter. Any notice pursuant to this paragraph will be in English, Spanish and such other languages as provided in any administrative regulations promulgated pursuant to section 8.35.130 of this chapter. Each Employer shall post any notice pursuant to this paragraph in a conspicuous place at each workplace or job site where any Employee of that Employer works. C. Initial and Annual Notice Regarding Employee Inquiries. Each Employer shall provide each Employee, upon hiring and annually, written notice including the Employer's legal name, address, telephone number, and the name and contact information for an Employer representative responsible for inquiries concerning compliance with this chapter. D. Employer Records Retention. Each Employer shall maintain a record of each Employee's name, his or her hours worked, and pay rate. Such records shall be retained for at least a three-year period.. Each Employer shall provide to each Employee or each Employee's representative a copy of the records required to be maintained concerning that Employee pursuant to this paragraph upon request during normal business hours. Failure of an Employer to maintain and provide records in accordance with this paragraph shall raise a rebuttable presumption that an Employee's account of how much he or she was paid in any proceeding to enforce the provisions of this Chapter is accurate, which presumption may be rebutted by competent evidence to the contrary. E. Remedy for Violations of this Section. Employers that violate the requirements of this section shall be subject to administrative citation in accordance with section 8.35.070, paragraph (b)(3) of this chapter, and chapter 1.16 of this code. F. City Failure to Give Notice. Failure by the City to provide notice as permitted pursuant to this section shall not create a basis of liability of the City for any reason or purpose, and shall not be a defense to any Employer's alleged failure to pay minimum wages or to otherwise fully comply with the requirements of this chapter. Section 8.35.090 No City Duty Created. The purpose of this chapter is to establish minimum wages Employers must pay Employees for hours Employees work in the city, and to establish remedies that Employees and their representatives and the city may seek for alleged Employer violations of this chapter. This chapter is not intended to create, and may not be Petaluma Minimum Wage Ordinance Ordinance N.C.S. Attachment 2 construed so as to create, any city duty to implement or enforce the requirements of this chapter. Section 8.35.100 No Limit on Employees' Other Employment Relief. The provisions of this chapter shall not be construed so as to limit an Employee's rights to obtain any other relief to which he or she may be entitled at law or in equity concerning that Employee's employment. Section 8.35.110 No Derogation of Other Wage or Employment Rights, Including Rights under the City's Living Wage Chapter. The minimum wage requirements of this chapter are not intended to preempt and may not be construed to preempt any additional or more generous wage or other employment requirements that apply by regulation, contract or otherwise to Employees working in the city. In particular, this chapter does not amend or otherwise affect the city's living wage requirements codified in Chapter 8.36 of this code. Employers that are subject to this chapter and that are also subject Chapter 8.36 must to the fullest possible extent comply with all applicable requirements in both Chapters 8.35 and 8.36 of this code. Nothing in this chapter excuses Employers' full compliance with all applicable requirements of the city's living wage requirements in Chapter 8.36,of this code, and nothing in Chapter 8.36 excuses full compliance with all applicable minimum wage requirements of this chapter. To the extent wages Employers owe Employees under this chapter and under Chapter 8.36 of this code differ, Employers must pay Employees the higher applicable wage. Section 8.35.120 Savings. This chapter shall be construed and applied so as to harmonize to the maximum, legally permissible extent with all applicable federal, state and local law. To the maximum, legally permissible extent, nothing in this chapter shall be construed or applied so as to create a prohibited conflict with any federal, state or local laws or regulations. Section 8.35.130 Administrative Regulations. The city manager is hereby authorized to promulgate regulations consistent with the provisions of this chapter for the implementation and enforcement of this chapter, and any regulations so promulgated by the city manager hereunder shall have the force and effect of law. Employers and Employees and other parties may rely on such regulations to determine their rights and responsibilities under this chapter. Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Petaluma Minimum Wage Ordinance Ordinance N.C.S. 0 Attachment 2 Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases may be held unconstitutional, invalid, or unenforceable. Section 5. Effective Date/Referendum Period. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 6. Posting/Publishing of Notice. .The City Clerk is hereby directed to post and/or publish this ordinance or a synopsis of it for the period and in the manner required by the City Charter. The City Cleric is also hereby directed to file a Notice of Exemption concerning this ordinance with the Office of the Sonoma County Clerk in accordance with Section 15062 of the CEQA Guidelines. INTRODUCED and ordered posted/published this day of , 2019. ADOPTED this day of , 2019 by the following vote: Petaluma Minimum Wage Ordinance Ordinance N.C.S. 10 Attachment 3 07-15-2019 Petaluma Minimum Wage Public Input Received 6/21/19 from Petaluma Pie Company From: Petaluma Pie Company <pie@petalumapie.com> Sent: Monday, June 17, 2019 4:02 PM To: Barrett,Teresa; Fischer, D'Lynda; Healy, Mike; Kearney, Gabe; King, Dave; Mcbonnell, Kevin; Miller, Kathy Subject: Minimum Wage Ordinance ---Warning: Use caution before.clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL SYSTEM. --- To Whom it May Concern, We are writing in support of a local minimum wage ordinance for Petaluma. As we are all aware, the cost of housing and other expenses.-haVe risen astronomically in our city and county. The State of California has mandated minimum wage increases each year to raise the minimum wage to $15 by 2022 (2023 for employers with 25 or fewer employees). The proposed ordinance would aim to get there sooner: This will be a challenge for smaller employers, so we advocate.a phase in which would give an additional year to get to $15 per hour. A local ordinance will be the push employers need to raise wages. We strongly feel that the minimum wage should go up incrementally over time with a cost of living adjustment, which will avoid these disruptive jumps in wages and allow employers to better plan. Even with a higher minimum wage, the cost of housing will continue to be. out of reach for many people working full time. Our employees, earning more than the minimum wage, still struggle to afford to live here. As we have stated before, this city and this county are in desperate need of affordable housing. By affordable housing, we mean housing. people can afford without being means tested; as the income requirements are too low. All too many people earn too much to qualify for subsidised housing but too little to afford the absurdly high "market" rents. In order to afford a typical room in a shared home you would need to earn about $20 per hour. If you want to share a one or two bedroom apartment with one other person; you would need to earn $25 to $30 per hour. You might be able to live by yourself if you can earn $40 per hour, or over $80K per year. We are trying our best to raise wages, but getting to $25 or $30 per hour is going to be tough. We need more housing. Thank you, Angelo Sacerdote and Lina Hoshino Petaluma Pie Company Petaluma Pie Company 125 Petaluma Blvd. N. suite B Petaluma, CA 94952 www.petalumapie.com pieP-Petalumapie.com tel: 707-766-6743 Order pies online at www.petalumapie.com Received from Richard Marzo on 7/10/2019: email below and attached newspaper clipping. From: Richard Marzo <Richard@lacehouselinen.com> Sent: Wednesday, July 10, 2019 11:06 AM To: Healy, Mike; Kearney, Gabe; King, Dave; Miller, Kathy; McDonnell, Kevin; Fischer, D'Lynda; Ba rrett,Teresa Cc: Flynn, Peggy; Alverde; Ingrid; Danly, Eric Subject: Minimum Wage ordinance Good morning, I understand that the staff report on the Minimum Wage Ordinance will be ready tomorrow and I look forward to reviewing it prior to'Monday's Council meeting. I urge you to consider the full package of benefits that our employees receive, rather than solely focusing on the hourly wage. I also believe businesses should be given at least six months to prepare for the increased costs of raising'the minimum wage and that these costs cannot solely be absorbed by business and their customers — employees will have to contribute more towards medical benefits in order to help spread the costs. Please find attached an article from this weeks SF Chronicle regarding Emeryville's plans and re -consideration of their ordinance. Your dedication to our city is greatly appreciated. Warm regards, Richard Marzo Lace House Linen