Chapter 2.122
PAYMENT OF LIVING WAGE
Sections:
2.122.010 Findings and purpose.
2.122.020 Living wage requirement.
2.122.050 Nonprofit and other agencies.
2.122.060 Assignees/successors in interest.
2.122.080 Certification by contractor.
2.122.090 Application of chapter.
2.122.100 Notification of employees.
2.122.110 Monitoring and enforcement.
2.122.130 Labor relation neutrality.
2.122.010 Findings and purpose.
In enacting this chapter the Board of Supervisors makes the following findings and articulates the following purposes for the promulgation of the living wage regulations set forth herein:
(A) The health and welfare of all Santa Cruz County residents is benefited and advances when Santa Cruz County workers are paid a living wage;
(B) The County awards many contracts to private sector employers to provide services to the County in accordance with those contracts;
(C) Many workers in Santa Cruz County and their families live at or below the poverty line. The payment of inadequate wages to those workers tends to negatively affect the quality of services provided to the County and its residents by fostering high turnover and instability in the workplace;
(D) The payment of a living wage will increase the ability of low wage workers to attain sustenance, decrease the amount of poverty and reduce the amount of taxpayer funded services provided in the County of Santa Cruz;
(E) Some employers who provide contract services to the County do not provide health insurance benefits to their employees. This factor negatively affects worker performance and the quality of services delivered to the County and its residents, results in unwarranted employee absenteeism and negatively impacts local and State health programs. These problems can be favorably impacted if employers provide reasonable health insurance benefits to their employees; and
(F) Living wage jobs will decrease poverty, increase consumer income and invigorate neighborhood businesses. [Ord. 4647 § 1, 2001].
2.122.020 Living wage requirement.
(A) Covered employees shall be paid a living wage.
(B) The “living wage” to be paid to employees pursuant to the requirements of this chapter shall be a minimum hourly wage set by resolution of the Board of Supervisors after consideration of the annual cost of living increase as measured by the San Francisco-Oakland-San Jose Area Consumer Price Index, Table 6—Consumer Price Index for Urban Wage Earners and Clerical Workers, percent change for the period October to October. The Chairperson of the Board of Supervisors, or his/her designee, shall meet once a year with representatives appointed by each of the other jurisdictions in Santa Cruz County who have adopted living wage ordinances to recommend a uniform living wage index, based on the Consumer Price Index. Any adjustments made to the minimum hourly wage shall become effective the following July 1st, or on such other date as specified in the resolution setting the wage.
(C) “Benefits” as used in this section means all of the following at a minimum, provided by employer: 12 days compensated sick and vacation leave (combined) annually for full-time employees, prorated for employees working less than full time; payment of at least $1.00 per hour toward health insurance for the employee. No covered employer will fund wage increases required by this chapter, or otherwise respond to the provisions of this chapter, by reducing the health insurance, pension, vacation or other non-wage benefits of any of its employees.
(D) Amendments to this chapter concerning the definition of living wage shall apply to contracts entered into or extended following the effective date of such amendments. [Ord. 4676 § 1, 2002; Ord. 4647 § 1, 2001].
2.122.030 Definitions.
The following words and phrases, whenever used in this chapter, shall be given the following definitions:
(A) “Contract for private sector services” shall refer to any contract for profit between the County and a private sector contractor for the following services:
Automotive repair and maintenance;
Equipment maintenance service;
Facility and building maintenance;
Furniture moving and installation/maintenance services;
Janitorial and custodial services;
Landscape maintenance services;
Laundry services;
Office and clerical services;
Pest control services;
Recreation services;
Security services;
Transportation and shuttle services;
Towing services;
Tree trimming and removal.
“Contract for private sector services” does not refer to: contracts for commodities, goods or supplies; contracts for public works; contracts for public projects subject to prevailing wage requirements; contracts for professional services including but not limited to the services of architects, engineers, landscape architects, land surveyors, construction managers, scientists, physicians, attorneys, financial advisers or consultants; nor leases.
(B) “Contractor for private sector services” shall refer to any private sector contractor/employer who enters into a contract or contracts for private sector services with the County, with the cumulative compensation amount in one County fiscal year greater than $15,000.
(C) “Subcontractor” shall refer to any subcontractor who enters into a subcontract with a contractor for private sector services.
(D) “Covered employee” shall refer to any employee of a contractor for private sector services, or to any employee of a subcontractor who lives or works in Santa Cruz County. In the foregoing context, “covered employees” are those persons hired by contractors or subcontractors to work on County contracts on a full-time, part-time, temporary, seasonal or regular basis for wages or salary.
“Covered employee” shall not include persons who are: 17 years old or younger; in positions that are designated for “trainees” that are part of an employer’s bona fide time-limited training program, which training program enables the employee to advance into a permanent position; in positions of employment that require student status as a prerequisite to being employed in that position; volunteers; recipients of income support such as but not limited to supplemental security income who would become ineligible for such benefits by virtue of receiving a living wage as described herein, who waive in writing their entitlement to a living wage; or workers in licensed, sheltered workshops or supported employment; recipients of public funds who have been placed in a work experience, on-the-job training position, summer employment position or wage-based community service position as defined by the Human Services Department Director or Health Services Agency Director.
“Covered employee” shall not include those employees who are represented by a bargaining unit or labor union pursuant to rights conferred by State or Federal law and for whom a collective bargaining labor agreement is in effect governing their terms and conditions of employment.
(E) “County” shall refer to the County of Santa Cruz including all County departments and related County entities governed by the Board of Supervisors, with the exception of the In-Home Supportive Services Public Authority. [Ord. 5278 § 28, 2018; Ord. 5156 § 1, 2013; Ord. 4647 § 1, 2001].
2.122.040 Exemptions.
(A) Exempted from the requirements of this chapter are contractors with five or fewer employees.
(B) The Board of Supervisors in its sole discretion, or its designee, may grant an exemption for additional grounds upon making a finding and determination either that compliance with the living wage will cause economic hardship, or that the exemption is necessary for the best interests of the County and is due to unusual circumstances (e.g., following a declared natural disaster) or where the County is required to award a contract for services to a sole source contractor for services. For all exemption requests, the exemption applicant must provide a written statement that includes complete details in support of the request for exemption and describe alternative solutions pursued. Exemptions will apply only to the contract for which they are granted. [Ord. 4647 § 1, 2001].
2.122.050 Nonprofit and other agencies.
This section shall apply to nonprofit agencies as follows:
(A) All nonprofit contractors shall be exempt from the living wage rate requirement of this chapter.
(B) Nonprofit contractors shall be required to comply with the “non-wage” related requirements of this chapter as set forth in SCCC 2.122.100, 2.122.130, and 2.122.140.
(C) Nonprofit contractors shall be required to provide wage data as required by the County for all employees compensated at a rate less than the living wage standard.
(D) All exemptions set forth in SCCC 2.122.040 shall apply to nonprofit contractors, including contractors with five or fewer employees and contractors granted an economic hardship exemption based on a determination of the Board of Supervisors in its sole discretion. An additional exemption to the requirements of this chapter shall be programs operated by nonprofit contractors that do not receive any County funds.
(E) All monitoring and enforcement of “non-wage” related requirements set forth in SCCC 2.122.110 shall apply to nonprofit contractors.
(F) The following definitions shall apply to nonprofit contractors:
(1) “Contractor for nonprofit services” means any nonprofit contractor/employer who enters into a contract or contracts for nonprofit services with the County, with the cumulative compensation in one County fiscal year greater than $15,000.
(2) “Covered employee” means any employee of a nonprofit contractor for service who lives or works in Santa Cruz County. “Covered employee” shall not include persons designated as “trainees” in an employer’s bona fide time-limited training program, positions that require student status, volunteers, recipients of income support such as but not limited to supplemental security income who would become ineligible for such benefits by virtue of receiving a living wage and who waive in writing their entitlement to a living wage, workers in licensed, sheltered workshops or supported employment; recipients of public funds who have been placed in work experience, on-the-job training positions, summer employment positions, or wage-based community service positions as defined by the Human Services Department Director or Health Services Agency Director; nor those employees who are represented by a bargaining unit or labor union pursuant to rights conferred by State or Federal law and for whom a collective bargaining agreement is in effect governing their terms and conditions of employment.
(G) Applicability of this chapter to for-profit health and human service agencies shall be considered by the Board of Supervisors at a later date. [Ord. 5156 § 2, 2013; Ord. 4721 § 1, 2003; Ord. 4647 § 1, 2001].
2.122.060 Assignees/successors in interest.
The living wage requirement imposed by this chapter shall be binding upon the assignees and successors in interest of any contractor or subcontractor to which this chapter applies. [Ord. 4647 § 1, 2001].
2.122.070 Contract provision.
County departments and officers shall place in contracts for services and related requests for proposals or bid documents language in substantially the following form: “This contract is subject to the provisions of Chapter 2.122 SCCC, requiring payment of a living wage to covered employees. Noncompliance during the term of the contract will be considered a material breach and may result in termination of the contract or pursuit of other legal or administrative remedies.” [Ord. 5278 § 28, 2018; Ord. 4647 § 1, 2001].
2.122.080 Certification by contractor.
Prior to commencement of the contract’s term or execution by the County, the contractor will certify to the satisfaction of the County that its employees are paid a living wage as provided by this chapter. [Ord. 4647 § 1, 2001].
2.122.090 Application of chapter.
The living wage requirement imposed by this chapter shall apply to all contracts for services and related subcontracts made or entered into, or extended, on or after the effective date of the ordinance enacting this chapter. [Ord. 4647 § 1, 2001].
2.122.100 Notification of employees.
Contractors for services and subcontractors shall notify all employees subject to the provisions of this chapter of the requirement to pay a living wage, the current minimum living wage rates, the minimum vacation leave and sick leave that must be provided and the minimum amount paid toward health insurance to qualify for the lower minimum living wage. Contractors for services and subcontractors shall post a copy of this chapter and the approved complaint procedure in the workplace, and provide this information to employees upon request. [Ord. 4647 § 1, 2001].
2.122.110 Monitoring and enforcement.
Monitoring of compliance with the requirements of this chapter shall occur under the same monitoring program as applicable to the County’s prevailing wage requirements. An annual report shall be provided to the Board of Supervisors or its designee concerning the status of the program.
The County Administrative Officer shall be the compliance officer for the purpose of enforcing the provisions of this chapter. Complaints concerning contractors’ compliance with this chapter shall be made to the compliance officer, who shall follow the complaint procedure established by the Board of Supervisors.
Any employee claiming violation of this chapter may report such acts to the County and may bring an action in the appropriate court of the State of California or other appropriate administrative agency, against an employer to enforce their rights. Nothing in this chapter shall preclude an employee from seeking any or all forms of relief and damages.
Contractors or subcontractors shall not discharge, reduce the compensation of, discriminate or otherwise retaliate against or intimidate any person for making a complaint to the County concerning noncompliance with obligations under this chapter. Contractors for services and subcontractors shall also comply with Federal, State and all other applicable law proscribing retaliation for union organizing. [Ord. 5278 § 28, 2018; Ord. 4647 § 1, 2001].
2.122.120 Third tier review.
Prior to commencement of the contract’s term or execution by the County, the contractor and/or subcontractor will certify to the satisfaction of the County that its employees are paid a living wage as provided by this chapter. Contractors and subcontractors must include a statement reflecting any violations found against the contractor and/or subcontractor over the past five years by the National Labor Relations Board, the Occupational Safety and Health Agency, the California Labor Commission, the Equal Employment Opportunity Commission and/or the Department of Fair Employment and Housing. The statement must indicate how any violations were addressed.
With regard to services agreements approved by the Board of Supervisors that are procured pursuant to SCCC 2.37.040, prior to seeking the Board’s approval the County will investigate and consider the history of the contractor as an employer and the working conditions of the contractor’s employees. In addition to other actions that may be required by the Board in specific circumstances, the County shall be authorized to access and review the contractor’s employee turnover, wages paid, benefits and employee grievances or complaints and consider references from entities engaged in prior contracts with the contractor or subcontractor. Any proprietary information, or personnel and employee information, shall be kept confidential. This information will be part of the consideration for the execution of any contemplated contract and may be used by the Board as the basis for contract denial. [Ord. 5278 § 28, 2018; Ord. 4647 § 1, 2001].
2.122.130 Labor relation neutrality.
Contractors for services and subcontractors shall not hinder or further collective bargaining organization or other collective bargaining activities by or on behalf of an employer’s employees. However, this restriction shall not apply to any expenditure made in the course of good faith collective bargaining, or to any expenditure made pursuant to obligations incurred under a bona fide collective bargaining agreement. [Ord. 4647 § 1, 2001].
2.122.140 Employee retention.
In the event that any contract for services for an amount greater than $50,000 is terminated by the County prior to its expiration, any new contract with a subsequent contractor for those same services shall include the following term:
Contractor shall make best efforts to offer employment to qualified employees of the prior contractor for the performance of this contract. Such efforts shall not be required in regard to employees who are (A) exempt under the Fair Labor Standards Act, (B) family members of prior contractor, (C) employed by prior contractor for less than six months or (D) convicted of a job-related or workplace crime. Upon request by the County, the contractor shall demonstrate to the County that good faith efforts have been made to comply with this provision. [Ord. 4747 § 1, 2001].
2.122.150 Severability.
If any section, subdivision, paragraph, sentence, clause or phrase of the ordinance codified in this chapter is for any reason held to be unconstitutional or invalid, such a decision shall not affect the validity of the remaining portion of the ordinance. The Board of Supervisors hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance irrespective of the unconstitutionality or invalidity of any section, subdivision, subsection, paragraph, sentence, clause or phrase of the ordinance codified in this chapter. [Ord. 4647 § 1, 2001].