Introduced by Council member _ _ _ _ _ __ ORDINANCE NO. - - - - - - - - - AN ORDINANCE OF "J:HE CITY OF PASADENA AD[)ING.CHAPTER5.02 TO TITL~ 5, ARTICLE I OF THE PASADENA MUNICIPAL CODE TO REQUIRE THE PAYMENT OF A CITY-WID:E MINIMUM WAGE SECTION 1. Ordinance No. __ due to its length and corresponding cost of publication, will be published by title· and ·summary as permitted by Section 508 of the Pas~dena City Charter. The approved summary· of this Ordinance is as follows: 1 , "Summary "Ordinance No. - - . will amend Title 5, Arti~le I of the Pasadena Municipal Code by addif19 a new. Chapter 5.02 to require the payment of a City;. . wide minimum wage of $10.50 beginning July 1, 2016, $12.00 .beginning July 1, 2017,· and·$13.25 on July 1, 2018. Ordinance No. -'------,.. shall take effect 30 days after publication." SECTION 2. A new Chapter 5.02 is added to Title 5, Article I .of the Pasadena Municipal Code to read as follows: "Chapter 5.02 .. Payment of a 5.02.010. City~Wide Minimum Wage Definitions. For purposes of this chapter, the following definitions shall apply: , A. "City" ·means the City of Pasadena. B. "Direct~r" C. means the director .of the department of finance. "Employee" means any individual who: 1. In a particular week performs at least two hours of work w.ithin the geographic boundaries of the City for an employer;· and · 1 2. Qualifies as an employee entitled to payment of a minimum wage from any Employer under the California minimum wage law, 1as provided under Section -1197 of the Califoroia Labdr Code and wag.e orders published by the California Industrial Welfare Commission. - ·~ D. .. ; ' "Employer" means any person, as defined in Section 18 of the California , Labor Code,· including a corporate officer or executive, who direct.ly or indirectly or through an agent or any other. person, 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. ·· · E: · "Non-Profit Corporation" means a non-profit corporation, duly organized, validly existing and in good standing under the laws·· of the jurisdiction of its incorporation and, if a foreign corporation, in good standing u·nder the laws of the State of California,· which cqrporation has established and maintains . valid non ... profit status under Section 501 (c)(3) of the United States Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder. ·· · F. · "Person" means any person, association, organization, partnership, bu~iness trust, .limited liability company or corporation. . \ ~ . G. . . "Transitional Employer" means an organization that provides transitional jobs for the long-term unemployed, and that has been certiffed by the -City · Manager as a transitional employer under this Chapter. 5.02.015. Payment of Minim·um Wage to Employees. . !• . A. B. ( . Employers shall pay Employees no less than the minimum wage set forth in this section for each hour worked within the geographic boundaries of the City. · · Employers with 26 or more Employees shall pay a wage of no less than · the hourly rates set forth below: . . 1. On July 1, 2016, the hourly wage shall' be $1 0.50. 2. On July 1, 2017, the hourly wage shall be $12.00. 3. On July 1, 2018, the hourly wage shall be $13.25. C.. Employers· with 25 or fewer Employees shall pay a wage· of ·no less than · .·tt~e hourly rates set forth: 1. On July 1, 2017, the hourly wage shall be $10.50. 2. On July 1,· 2018, the hourly wage shall be $1_2.00. D. Employees, who are "Learners'' as defined in Labor Code Section ·1192 and consistent with wage orders published by the California Industrial . ·· VVelfare Commission and are 14-17 years of age, shall be paid not less than 85%"'of the minimum wage set forth in this section, rounded to the nearest nickel, during their first 160 hours of employment. After. more than 160 hours of employmel7!t, Learners shall be paid the applicable minimum wage pursuant to this ·section. 2 \ . ~ ·~ E. For purposes of this chapter, the size of an Employer's business or NonProfit Corporation shall be determined by the averagelnumber Of Employees employed during the previous calendar year. 5.02.020. A. . B. . ::. ' . Notice and Posting. By April 1 of each,year following the effective date of this ordinance, the City shall publish and-make available to Employers- a bulletin announcing the. adjusted min.imum· wage rate, which shall take effect on· July 1 of that year. ·In conjunction~ with this bu,lletin; the City shall, by May 1 of each year, publish and make available to Employers, in English and other~ . languages as provided in any implementing regulations, .a notice suitable for posting by Employers in the workplace informing Employees of the current minimum wage rate and of their rights under this chapter . Each Employer shall·give written notification to ea·ch current Employee and to each new Employee at time ofhi.re., of Employee's rights under this chapter and of the Employee's possible right to the federal Earned Income Credit (EIC) under Section. 32 of the lnternai·Revenue Code of 1954, 26 U.S. C .. Section 32. The notification shall be in English and other languages as provided ·in any implementi(ng regulations, .an~ shall also be · posted prominently in areas at the work site where it will be seen by aii.J · .Employees .. Every Employer shall also provide each Employee at ·the time of hire with the Employer'·s ·name,. address, and telephone number in writing. Failure to post such notice shall render. the Employer subject to administrative citation, pursuant to. the provisions of this chapter. The City is authorized to prepare. sample notices and Emplo'yer use of such notices shall"co,nstitute compliance with this subsection . . 5.02.025. Deferral Application .for Certain Non-Profit E":lployers. The City Manager.shall establish a procedure to allow an Employer that is a NonProfit Corporation with .26 or more Employees· to qualify for the deferral.rate schedule specified in Section 5.02.~01 0 C. A Non-Profit Employer seeking the deferral must establish by ~compelling evidence that: A. . B. . The chief executive officer earns a salary which, when calculated on.an hourly basis, is less than five· times the lowest wage paid by the corporation;. or It is a Transitional Employer; or C. It serves as a child care provider; or D. It is funded ·primarily by City, County, State or Federal grants or · reimbursements. 3 ( j 5.02.030. Retaliatory Action Prohibited. No Employer-shall discharge, reduce in compensation or otherwise discriminate ·against any Employee for opposing any practice proscribed by this chapter, for participating_in proceedings reiated to this chapter, foLseeking·to enforce his or her rights under this chapter· by any lawful means, ·or for otherwise asserting rights under this chapter. Taking adverse action against a person within ninety (90) days of the person's exercise bf rights protected und~r this chapter, in a civil or·adminfstrative proceeding, shall·raise a rebuttable presumption of having done so in retaliation for the exercise of such rights. 5.02.035: Retention of Records. A. Each Employer shall maintain, for at least three (3) years: for each Employee, a .reco~d of-the Employee's name,· hours worked, arid pay rate. ' · Each Employer shall provide each Employee ·a copy of the reco'rds · relating to such Employee upon the Employee's reasonabl~ request. . B. . . Each 'l;mployer shall permit access to work sites and relevant records for . authorized City representatives for the. purpose of monitoring complia'nce, · with this chapter and investigating Employee complaints of · · . · · ·noncompliance, including production fot"'inspection._and copying of its · employment records, but without allowing social·se·curity numbers to' . r. become a matter of public record. ·5.02..040. Power and duties of director. . A. . B. . . . . . ' The director shall have the pow~r and duty, and is directed, to enforce each and all of the provisions of this chapter . . The director may adopt guidelines, rules, and regulations, ·approved by the city attorney as t() form and legality, not inconsistent with the provisi9ns of this chapter for the purpose of carrying out and enforcing the requirements herei.n imposed, clarifying any of the administrative requirements of this chapter, and establishing frequency and protocol of city regulatory inspections: A copy of all adopted administrative rules and· regulations shall be on file in the director's office. Any guidelines or ru!es shall have the force and effect of law, and may· be relied upon ~Yi Employers, Employees and other parties to determine their Tights and responsibilities under this chapter. 4 C. The director shall act as the enforcement official who is designated to issue a ·compliance order or an administrative citation to enforce this chapter pursuant to chapter 1.25 or 1.26, respectively, of this code. 5.02.045. No Waiver of Rights. Any waiver by an Employee of any or all of the provisions of this chapter shall be deemed contrary to public policy and shall be void and unenforceable. 5.02.050.- I-mplementation, Enforcement,. and Remedies. It is unlawful fo.r any person to violate any provision of this chapter or to fail to comply·withany ·at the requirements of this chapter. A. Misdemeanors. Any person who violates any provision of this chapter and ·is convicted of a misdemeanor shall be punished by a fine of not more than $1,000.00 or by imprisonment for a period of not more than 6 months or by both such fine and in1prisonment. Each person convicted may be deemed guilty of a separate offense for every day during any portion of which any violation is committed or permitted and ~or each and every employee or person as to whom the violation occurred or continued. B. Infractions. Any person who violates any provision of this chapter and is convicted of an infraction shall be punished by a fine. Each person convictec;j may be deemed guilty of a separate offense for every day during any portion of which :any violation is com_mitted or permi_tted and for each and every employee or person as to whom the vio'lation occurred or continued. C. · Administrative Proceeding. In addition to the penalty provisions of .subsections A and B ofthis section; violations ofany administrative or regulatory provision of this chapter may be subject to the administrative proceedings set forth in Chapters 1.24, 1.25, and 1.26 of the Pasadena Municipal Code, including, but without limitation, civil-penalties, late payment' penalties, administrative fees, general fee schedule penalties and other related charges. D. Judicial Action. The city or any person claiming harm from a violatjon of this chapter may bring an action against the Employer 'in court to enforce1 the provisions. of this chapter. Any person claiming harm from a violation of this chapter and/or the city is/are entitred to all legal 'arid equitable relief to remedy any violation of this chapter, including, but not limited to, the payment of back wages withheld in violation of this chapter; an additional· amount equal to triple back .wages withheld as liquidated damages;, reinstatement of employment or other injunctive relief; and reasonable attorney's fees and costs to any plaintiff, who. prevails in an action to 5 enforce this chapter. Violations of this chapter are declared to irreparably harm the public and covered Employees generally. · · E·. Revocation of ·certificates,· Permits, or Licens-es·. Except where prohiqited by state or federal law, the city may revoke or suspend any registration, · certificates, permits,_ or licenses held or request~d by the~ Employer until such time as the violation is re·medied. · F. Remedies Not Exclusive. The remedies, pe.nalties·and procedures provided under this chapter are cumulative and are not intended to be exclusive ·of any other available remedies, penalties and procedures established by law .which may be pursued to address violations of this -chapter. Actions· taken pursuant to this chapter shall not prejudice or . adversely affect any.other action, administrative or judicial, that may be' brought to aQate a violation or to seek compens~tion for-damages ,suffered. Coexistence with other Available Relief for Sp~cific Deprivations of P~otected· Rights. 5.02.055. Th~·pro,iisions· of this chapter shall-not be-construed as· limiting any Employee's. right to obtain relief to·which he or she may be entitled ·at law or in equity. 5.02.060. Conflicts. Nothing in .this chapter shall be interpreted or ·applied so as to create any power or duty in .conflict with any federal-or State law. 5.02.065. Repo,rt and Increase in Future Years . . . . · . . . . - . ' . . " . . ·A. ·dn or before Febr.uary~ 18, 2019, the City Manager shall present a report · to the :city Council summarizing the _impact of the City.:wide minimum wage .. on reducing poverty, unemployment, job creation, and the overall local business climate. B. As soon thereafter as practicaiJ th~ City Manager shall reque~t direction . from the City Councfl regarding an amendment to this chapter to increase the city-wide minimum. wage according to the following schedule: . 1. .July 1, 2019.,the hourly wage shall be $14.25. · 2. July 1, 2020, the hourly wage shall be $15~00. c. 3. Beginning July· 1, 2022, and each July 1. thereafter the hourly wage -shall .be adjusted by an amount equal to the change in the Los Angeles-Riverside-Orange County consumer price· index for Urban Wage Earners anc;i Clerical Workers. · · 6 '5.02.070. S~verability. if any subsection, sentence; clause or phrase of _this .chapter is for any reason held to be invalid or unconstitutional by q court of competent jurisdiction, such ' decision shall not affect the validity of the remainin'g portions of this ordinance. 'The City Council h,ereby.declares that it would have adopted this section, and each and every subsection, s~ntence, clause and phrase thereof nof declared. invalid or unconstitutio'nal, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. · SECTION 3. The City Clerk shall certify the adoption of this Ordinance and ·sh~ll cause this·ordina~ce to be published in its entirety. . SECTION 4. This Ordinance shall take effect 30 days after publicat'ion . .Signed and approved t h i s - - - day of_....;....____ _ , 2016. Terry Tornek · Mayor of the City of Pasadena. I HEREBY CERTIFY that the foregoing ordinance was adopted by the City Council of the City of Pasadena at its meeting held on day of 2016 by the following vote: ) AYES: NOES: ABSENT: AB,STAIN: ' Published: Mark Jomsky, CMC City Clerk APPROVED:AS TO FORM: ·,~. /.·~.It_· Brad L. Fuller . Assistant City Attorney 0000137367C031 7' I