Allen Park, MI Living Wage
Type: Ordinance
Status: Adopted on 4/23/02
Source File: http://www.cityofallenpark.org/Web%20data/Ord_01-21_LivingWage.pdf
Text:
ORDINANCE NO. 2001-21
AN ORDINANCE TO AMEND CHAPTER 2, OF THE ALLEN PARK CODE OF ORDINANCES TO PROVIDE A NEW ARTICLE TO CONTRACTORS PERFORMING PERSONAL SERVICE WORK FOR THE CITY OF ALLEN PARK TO PAY FULL TIME EMPLOYEES A LIVING WAGE
THE CITY OF ALLEN PARK ORDAINS:
SECTION 1. AMENDMENT TO CODE.
Chapter 2 of the Allen Park Code of Ordinances is hereby amended to include the following new Article:
ARTICLE XXI. LIVING WAGE
Section 2-425. Purpose.
The purpose of this Article is to increase the quality and reliability of services procured
for the City of Allen Park or provide its citizens by contractors by promoting higher productivity
and retention of employees working on City contracts; to use City spending and procurement of
services to require covered employers to pay their employees a wage that is sufficient to meet the
employees' basic subsistence needs; and to provide incentives for covered employers to provide
health insurance to their employees.
Section 2-426. Applicability.
a. This Article shall apply to any person or entity that:
1. Primarily provides construction services on public work projects or contracted labor services for the City; and
2. Employs ten (10) or more employees working a minimum of thirty-five (35) hours per week; and
3. Has a contract or contracts with the City that total or aggregate an amount in the excess of twenty-five thousand ($25,000.00) Dollars within a City fiscal year, July 1st to June 30th.
b. This Article shall not apply to any of the following:
1. Contracts for the construction, alteration or renovation of Housing Projects owned or operated by the City;
2. Contracts for the purchase or supplying of goods or property,banking or insurance services, or other similar products;
3. Contracts for professional services;
4. Contracts with non-profit entities;
5. Temporary or Seasonal employees;
6. Employees covered by another Federal, State or Local Law requiring the payment of a prevailing wage;
7. Volunteers; or
8. High School or College Students, or the developmental disabled who are employed as part of a recognized and bona fide youth training program, work-study program, internship or rehabilitation
program.
Section 2-427. Definitions.
For purposes of this Ordinance, the following definitions shall apply:
a. Affected Employer or Contractor means an employer or contractor who comes under the provisions of this Article.
b. Contract means an agreement signed by the Mayor and City Clerk under authority of a resolution by the City Council.
c. Full Time Employee means any employee working a minimum of thirty-five (35) hours per week.
d. Employee Health Benefits or Health Benefits means health care benefits or medical insurance for employees at employer cost or making an employer contribution toward the purchase of health care benefits for employees, provided that the employer cost or contribution equals no less than two-thirds (2/3's) of the total premium of the health care benefits. In the alternative, if an employer participates in an employee health care plan provided by the county or other government related sponsor that involves a contribution by an employer that is matched by the employee and the sponsor, that participation shall constitute providing employee health benefits as defined in this section. Vision and/or dental insurance shall not be considered part of Health Benefits.
e. Fiscal year means that period from July 1st through June 30th.
f. Non-Affected Employer or Contractor means an employer or contractor who does not come under the provisions of this Article.
g. Temporary Employees means employees hired to augment the regular workforce and are hired for three (3) months or less.
h. Seasonal Employees means employees hired to augment the regular workforce and are hired for six (6) months or less.
i. Volunteer means an individual who receives no compensation or is paid expenses, reasonable benefits or a nominal fee to perform the services for which the individual volunteered and the services are not the same type of services that are done by employees.
Section 2-428. Aggregate or Additional Contracts.
If a non-affected contractor or employer receives an additional City contract, that when combined with prior contracts still open or being performed total more than Twenty Five Thousand ($25,000.00) Dollars, then the employer or contractor shall pay the required Living Wage for that contract and any subsequent contracts as long as the aggregate amount in a fiscal year exceeds the threshold limit.
Section 2-429. Living Wage Required.
Every Contractor coming under the provisions of this Article shall pay all of its full time employees working on the City Contract not less than the Living Wage established in this Ordinance.
Section 2-429. Establishment of Living Wage.
a. The initial Living Wage shall be Eight and 70/100 ($8.70) Dollars per hour if health care is provided to the employee and Ten and 20/100 ($10.20) Dollars per hour, if health care is not provided.
b. The living wage shall be adjusted annually, commencing July 1, 2003, by the same percentage change in the Federal poverty guidelines, as published by the United States Department of Health and Human Services, from the prior year. The percentage increase shall be rounded up to the nearest cent. In no event shall the revised Living Wage be less than what was paid in the prior year.
Section 2-430. Notice of Wage Adjustment.
Prior to April 1st of each calendar year, the City will post a written notice in the Office of the City Clerk indicating the new Living Wage for the next twelve (12) month cycle, July 1st to June 30th. Additionally, if an Affected Employer has provided an address to the City, a written notice shall be mailed by regular mail to the employer.
Section 2-431. Adjustment of Threshold Limit
On July 1st of each year, commencing July 1, 2003, the threshold limit contained within section 2-426(a)(3) shall be adjusted by the same percentage by which the cost of living, as maintained by the United States Department of Labor, increased over the last twelve (12) months. In no case shall the threshold limit be less than what it was for the prior twelve (12) month period.
Section 2-432. Exemption from Ordinance.
The City Council may grant a partial or complete exemption from the requirements of this Ordinance if it determines one of the following conditions apply:
a. Application of this Ordinance would violate federal, state or local laws;
b. The application of this Ordinance would cause demonstrated economic harm to an employer and the City Council finds that the harm outweighs the benefits of this Ordinance. An employer shall only be allowed to claim this provision one (1) time and if the Contract is to cover a period of more than one (1) year, the employer shall provide a written plan to fully comply with this Ordinance within reasonable period of time, not to exceed three (3) years.
c. Emergency Situations as determined by the City Administrator.
Section 2-433. No City Minimum Wage Established.
This Ordinance does not establish a generally applicable City minimum wage or affect the wages paid by any person or entity that does not do business with the City of Allen Park or come under the provisions of this Article.
Section 2-434. Proof of Health Care Benefits.
An Affected Employer wishing to pay the Living Wage with Health Care offset shall furnish proof, upon request by the City’s Purchasing Director, City Attorney or City Administrator, of payment of the health care coverage.
Section 2-435. Certification and Enforcement.
a. Every affected contractor, within two (2) weeks after receiving notification from the City
that it was been award a contract with the City or has been chosen to perform a service for the
City, shall submit a certified statement, on a form provided by the City, that the Contractor will
comply with the Living Wage Ordinance. The in case where subcontractors are used by the affected contractor, the affected contractor shall be responsible for the filing of the certification of the Subcontractor. Completed forms shall be filed with the Office of City Purchasing.
b. The Contractor shall post, in a conspicuous location at the work site within the City, notice that the Living Wage Ordinance is applicable to the project and will be paid. This notice shall be provided by the Office of the City Purchasing Director and shall indicate, at a minimum, all the following:
1. A statement that the Living Wage Ordinance applies to the project;
2. List the current Living Wage amount; and
3. How to file a complaint.
c. At the request of the City Purchasing Office, any contractor or subcontractor shall provide satisfactory proof of compliance with the living wage provisions of this Ordinance. Upon request by the City Purchasing Director, the Contractor or Subcontractor shall submit a certified list of employees and wages in the form requested by the Director. Employee identity shall be protected.
d. Any person may submit a complaint or report of a violation of this Ordinance to the City's Purchasing Director. The complaint shall be investigated to determine if there has been a violation.
e. The Office of the City Purchasing Director, in conjunction with the Office of the City Attorney, shall monitor the compliance of this Article and process any complaints filed.
Section 2-436. Required Contract Language.
All City Contracts shall provide that if the Living Wage Ordinance is applicable to the Contract,
a violation of the living wage requirements shall be a considered a material breach of the contract
or grant and subject the Contractor to all penalties allowed by law.
Section 2-437. Penalties.
The following penalties shall apply for a person violating these sections and this ordinance:
a. The person shall be guilty of a misdemeanor and punishable by a fine in an amount of not more than Five Hundred ($500.00) Dollars or imprisonment for a period not to exceed ninety (90) days or both.
b. The affected employer shall also be required to pay, retroactive, two (2) times the required living wage to the employees wrongfully paid initially.
c. The affected employer shall pay to the City the entire cost to enforce this ordinance, including but not limited to, the cost of the services required by the Human Resource Director, the City Attorney and the City Prosecutor and court costs.
d. The affected employer shall also be prohibited from obtaining another contract with the City for a period of one (1) calendar year.
e. If an affected employer violates this Article, it shall be considered a breach of the contract between the City and the covered employer giving the City shall the right to modify, terminate and/or seek specific performance of the contract or grant with that affected covered employer or to cancel, terminate or suspend the contract in whole or in part and/or to refuse any further payments under the contract.
Section 2-438. Effective Date.
This Ordinance shall apply to any contract or subcontract awarded or entered into, or the extension or renewal of any contract or subcontract after the effective date of this Ordinance.
Section 2-439. Private Actions for Damages or Injunctive Relief.
Nothing contained within this Ordinance shall prohibit suit by an employee against an Affected Employer under any Federal, State or Local Law having jurisdiction.
Section 2-444. Administrative Review
This Ordinance shall be reviewed by the Council Legal Affairs Committee after it has been in place for a period of one (1) year.
SECTION 2. REPEAL.
All Ordinances or parts of Ordinances in conflict with this Ordinance are hereby repealed only to the extent necessary to give this Ordinance full force and effect.
SECTION 3. SAVING CLAUSE.
Nothing in this Ordinance shall be construed to affect any suit or proceeding impending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing, under any act or ordinance hereby repealed pursuant to this Ordinance, nor shall any just or legal right or remedy of any character be lost, impaired or affected by this Ordinance.
SECTION 4. SEVERABILITY.
The various parts, sections and clauses of this Ordinance are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of the Ordinance shall not be affected thereby.
SECTION 6. ADOPTION.
This Ordinance is hereby declared to have been adopted by the City Council of the City of Allen Park, County of Wayne, State of Michigan, at a regular meeting, called and held on the 23rd day of April, 2002 and ordered to be given publication in the manner prescribed by law.
The purpose of this Article is to increase the quality and reliability of services procured for the City of Allen Park or provide its citizens by contractors by promoting higher productivity and retention of employees working on City contracts; to use City spending and procurement of services to require covered employers to pay their employees a wage that is sufficient to meet the employees' basic subsistence needs; and to provide incentives for covered employers to provide health insurance to their employees.