EXPLANATION: CAPITALS indicate matter added to existing law.
[Brackets] indicate matter deleted from existing law.
* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: Councilmembers Clarke and Conaway
A BILL ENTITLED
AN ORDINANCE concerning
title
Minimum Wage - Living Wage for Major Retailer Employees
FOR the purpose of requiring major retail stores to pay employees a living wage determined by the Board of Estimates; requiring that affected employees be informed of the required living wage rate; allowing for certain benefits to be included when determining if a wage rate complies with the requirements of this ordinance; defining certain terms; conforming, clarifying, and correcting related provisions; and generally relating to the City's required minimum wage rate.
body
BY repealing and reordaining, with amendments
Article 11 - Labor and Employment
Section(s) 1-1, 1-3, and 3-1
Baltimore City Code
(Edition 2000)
BY adding
Article 11 - Labor and Employment
Section(s) 8-1 to 8-9 to be under the new subtitle,
"Subtitle 8. Major Retailer Minimum Wage."
Baltimore City Code
(Edition 2000)
Recitals
It is the policy of the City of Baltimore, as expressed in §1-2 of the City's Labor and Employment Article, to promote living wage jobs to help working families make ends meet, and to protect the health and welfare of our community.
The Council has determined that the retail industry is an increasingly important source of jobs for its residents. However, retail jobs are some of the lowest paying in our economy. Without safeguards, many of these retail jobs will fail to provide wages adequate to meet the basic needs of working families, especially given the City's cost of living. By adopting living wage standards for major retailers, Baltimore can ensure that retail employment better meets the community's need for family-supporting jobs.
The Council has determined that major retailers in particular should be required to pay a living wage because:
(1) major retailers can afford to pay living wages;
(2) a number of retailers in the region already pay a living wage, proving that it is feasible for retail employers to create and maintain good jobs while still operating profitably;
(3) major retailers generally are less likely than other kinds of businesses to respond to wage regulation by closing or reducing employment because the retail industry is more location dependent; and
(4) in other jurisdictions, the enactment of living wage laws has had no negative impact on the retail market, retail employment or retail development.
The Council believes that it is desirable for major retailers to provide certain benefits for their workers, including healthcare, because better benefits can be purchased more economically by groups of individuals. The Council therefore has determined that it is desirable to include incentives in this Subtitle to retailers to provide benefits to their workers by offering retailers the option of offsetting a portion of the living wage rate with a credit for certain benefits retailers pay for their workers.
The Council has determined that it is appropriate at this time to refrain from requiring smaller retail businesses to pay a living wage. This approach, which is common in living wage and minimum wage laws, recognizes that for a variety of reasons larger businesses are generally better able to afford to pay a living wage than are small businesses. Therefore, the Council has determined that this ordinance should apply only to retailers whose annual gross volume of sales or business, when added to the annual gross volume of sales or business of the retailer's parent and affiliated corporations, exceeds a certain threshold amount.
SECTION 1. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Laws of Baltimore City read as follows:
Baltimore City Code
Article 11. Labor and Employment
Subtitle 1. Definitions; General Provisions
§ 1 1. Definitions.
(a) In general.
[The terms hereinafter set forth, wherever used in this Division I, are defined as follows] IN THIS DIVISION I, THE FOLLOWING TERMS HAVE THE MEANINGS INDICATED.
(A-1) COMMISSION.
"COMMISSION" MEANS THE WAGE COMMISSION OF BALTIMORE CITY ESTABLISHED BY SUBTITLE 2 OF THIS ARTICLE.
(b) Employ.
"Employ" means to permit to work.
(c) Employer.
(1) "Employer" means any person, individual, partnership, association, corporation, business trust, or any other organized group or successor of an individual, partnership, association, corporation, OR trust [of persons] employing 2 or more persons in the City of Baltimore.
(2) "Employer" [shall] DOES not include the United States, any State, or any political subdivision thereof.
(d) Employee.
(1) "Employee" means any person permitted or instructed to work or be present by an employer.
(2) "Employee" [shall] DOES not include:
(i) persons engaged in the activities of an educational, charitable, religious, or other nonprofit organization where the services rendered to [such] THE organization are on a voluntary basis, or in return for charitable aid conferred [upon such] ON THAT person;
(ii) persons EARNING MORE THAN $50,000 A YEAR, EXCLUDING OVERTIME, AND employed in a bona fide executive, supervisory, or professional capacity;
(iii) persons employed by any member of their immediate family;
(iv) persons compensated [upon] ON a commission basis only; or
(v) persons employed as domestics within a home, BUT only to the extent that [such] THESE persons have been exempted from the Federal Fair Labor Standards Act as amended[ and as hereafter amended].
§ 1 3. Severability.
If any provision of this Division I or [the] ITS application [thereof] to any person or circumstances is held invalid, the remainder of [the] THIS Division I and [the] ITS application [thereof] to other persons or circumstances [shall] WILL not be affected [thereby].
Subtitle 3. Wage Requirements
§ 3 1. Minimum wage required.
(a) Employers must pay.
Subject to the other provisions of this Division I, every employer operating and doing business in Baltimore City [shall] MUST pay wages to each employee in the City at a rate not less than THE GREATER OF:
(1) THE WAGE RATE REQUIRED TO BE PAID BY THAT EMPLOYER UNDER ANY PROVISION OF THIS DIVISION I; OR
(2) the minimum wage required by the Federal Fair Labor Standards Act, as amended.
(b) Violations.
It is a violation of this Division I for any employer to pay any employee a wage less than the minimum wage required by this Division I, and it is a separate violation each time an employee is not paid the wage required by this Division I at the time the employee is entitled to be paid.
SUBTITLE 8. MAJOR RETAILER MINIMUM WAGE.
§ 8-1. DEFINITIONS.
(A) IN GENERAL.
IN THIS SUBTITLE, THE FOLLOWING TERMS HAVE THE MEANINGS INDICATED.
(B) AFFILIATED CORPORATION.
"AFFILIATED CORPORATION" MEANS ANY CORPORATION THAT SHARES A COMMON PARENT CORPORATION WITH A MAJOR RETAILER.
(C) BENEFITS.
(1) IN GENERAL.
"BENEFITS" MEANS ACTUAL PAYMENTS PAID DIRECTLY TO AN EMPLOYEE OR PAID TO A THIRD PARTY ON BEHALF OF AN EMPLOYEE OR EMPLOYEE'S FAMILY FOR THE FOLLOWING PURPOSES:
(I) HEALTH CARE;
(II) RETIREMENT SECURITY;
(III) DISABILITY, DEATH, OR LIFE INSURANCE;
(IV) CHILDCARE;
(V) LEGAL SERVICES;
(VI) PUBLIC TRANSPORTATION;
(VII) PARKING AT LOCATIONS NOT OWNED BY THE MAJOR RETAILER; OR
(VIII) EDUCATION AND TRAINING AT ACCREDITED INSTITUTIONS.
(2) EXCLUSIONS.
"BENEFITS" DOES NOT INCLUDE ANY PAYMENTS THAT ARE:
(I) REQUIRED BY ANY FEDERAL, STATE, OR CITY LAW; OR
(II) DEDUCTED FROM AN EMPLOYEE'S WAGES OR OTHERWISE REIMBURSED BY AN EMPLOYEE.
(D) MAJOR RETAILER.
"MAJOR RETAILER" MEANS ANY ENTITY THAT:
(1) OPERATES A RETAIL STORE, AND
(2) WHOSE ANNUAL GROSS VOLUME OF SALES OR BUSINESS WHEN ADDED TO THE ANNUAL GROSS VOLUME OF SALES OR BUSINESS OF ITS PARENT CORPORATION AND ALL OF ITS AFFILIATED CORPORATIONS EXCEEDS $10,000,000 (EXCLUSIVE OF EXCISE TAXES AT THE RETAIL LEVEL THAT ARE SEPARATELY STATED).
(E) PARENT CORPORATION.
"PARENT CORPORATION" MEANS ANY CORPORATION THAT OWNS OR CONTROLS AT LEAST 51% OF THE VOTING STOCK, VOTING SHARES OR OTHER EQUITY IN A MAJOR RETAILER OR AN AFFILIATED CORPORATION.
(F) RETAIL STORE.
"RETAIL STORE" MEANS A STORE THAT IS LOCATED WITHIN THE GEOGRAPHIC BOUNDARIES OF THE CITY OF BALTIMORE AND THAT DERIVES A MAJORITY OF ITS REVENUE FROM RETAIL SALES OF GOODS FOR USE OR CONSUMPTION, BUT NOT FOR RESALE.
§ 8-2. PAYMENT OF LIVING WAGE RATE
MAJOR RETAILERS MUST ENSURE THAT ALL EMPLOYEES RECEIVE A MINIMUM WAGE, BEFORE TIPS OR GRATUITIES, OF NO LESS THAN THE LIVING WAGE RATE AS DEFINED IN § 8-3 BELOW FOR EACH HOUR WORKED.
§ 8-3. LIVING WAGE RATE, COST OF LIVING ADJUSTMENTS
THE LIVING WAGE RATE IS AN HOURLY RATE EQUAL TO THE LIVING HOURLY WAGE RATE ESTABLISHED BY THE BOARD OF ESTIMATES PURSUANT TO ARTICLE 5 § 26-16 OF THE CITY CODE. ON THE FIRST DAY OF EACH SUCCESSIVE FISCAL YEAR, THE LIVING WAGE RATE MUST BE ADJUSTED TO EQUAL THE LIVING HOURLY WAGE RATE ESTABLISHED BY THE BOARD OF ESTIMATES FOR THE FISCAL YEAR.
§ 8 4. {RESERVED}
§ 8-5. CREDIT FOR BENEFITS
(A) IN GENERAL.
CREDIT MAY BE TAKEN TOWARDS THE PAYMENT OF THE LIVING WAGE RATE FOR EACH EMPLOYEE WHO RECEIVES BENEFITS UP TO A TOTAL AMOUNT OF $2 PER HOUR.
(B) COMPUTATION.
(1) A MAJOR RETAILER MAY USE ANY REASONABLE METHODOLOGY THAT IS NOT INCONSISTENT WITH ANY REGULATIONS ISSUED UNDER THIS SUBTITLE TO DETERMINE THE HOURLY DOLLAR VALUE OF ANY BENEFITS.
(2) EVERY MAJOR RETAILER WHO ELECTS TO TAKE CREDITS FOR BENEFITS MUST PREPARE A WRITTEN ACCOUNTING JUSTIFYING CREDIT AMOUNTS AND A WRITTEN EXPLANATION OF THE MAJOR RETAILER'S METHODOLOGY EVERY TWO YEARS. THIS ACCOUNTING AND EXPLANATION MUST BE:
(I) FILED WITH THE COMMISSION; AND
(II) PROVIDED TO ANY EMPLOYEE OR EMPLOYEE REPRESENTATIVE ON REQUEST.
(C) REVIEW BY COMMISSION.
(1) AT AN EMPLOYEE'S REQUEST, THE COMMISSION MUST EXAMINE THE ACCOUNTING FILED UNDER SUBSECTION (B)(2) OF THIS SECTION.
(2) IF THE COMMISSION DETERMINES THAT THE ACCOUNTING IS INACCURATE OR UNREASONABLE, THE MAJOR RETAILER'S RIGHT TO TAKE A CREDIT FOR BENEFITS WILL BE REVOKED UNTIL THE MAJOR RETAILER FILES ANOTHER ACCOUNTING AND EXPLANATION THAT THE COMMISSION EXAMINES AND DETERMINES IS ACCURATE AND REASONABLE.
(D) LIMITATION ON CREDITS.
NO CREDITS UNDER THIS SECTION MAY BE TAKEN IN AN AMOUNT THAT WOULD REDUCE AN EMPLOYEE'S HOURLY MINIMUM COMPENSATION BELOW THE STATE OR FEDERAL MINIMUM WAGE RATE, WHICHEVER IS HIGHER.
§ 8-6. BULLETINS AND NOTICES.
(A) CITY TO PUBLISH RATES.
NO LATER THAN APRIL 1 OF EACH YEAR THE COMMISSION MUST PUBLISH AND MAKE AVAILABLE TO MAJOR RETAILERS A BULLETIN ANNOUNCING THE ADJUSTED LIVING WAGE RATE FOR THE UPCOMING 12 MONTHS.
(B) EMPLOYER TO POST.
MAJOR RETAILERS MUST POST NOTICES IN CONSPICUOUS PLACES IN EVERY RETAIL STORE THAT INFORM EMPLOYEES OF THEIR RIGHTS UNDER THIS SUBTITLE. THESE NOTICES MUST BE:
(1) IN THE FORM THAT THE COMMISSION SPECIFIES; AND
(2) IN A LANGUAGE OR LANGUAGES UNDERSTOOD BY EACH OF THE MAJOR RETAILER'S EMPLOYEES AT THAT RETAIL STORE.
(C) EMPLOYER TO DISTRIBUTE NOTICES.
(1) WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS SUBTITLE, ALL MAJOR RETAILERS MUST PROVIDE A COPY OF A NOTICE TO ALL CURRENT EMPLOYEES INFORMING THEM OF THEIR RIGHTS UNDER THIS SUBTITLE.
(2) MAJOR RETAILERS MUST PROVIDE A NOTICE TO EACH NEW EMPLOYEE AT THE TIME OF HIRE IN A LANGUAGE IN WHICH THE NEW EMPLOYEE IS LITERATE INFORMING THE NEW EMPLOYEE OF THE EMPLOYEE'S RIGHTS UNDER THIS SUBTITLE.
§§ 8 7 to 8-8. {RESERVED}
§ 8-9. CERTIFICATION OF COMPLIANCE.
ON OR BEFORE JUNE 30 OF EACH YEAR, EVERY MAJOR RETAILER MUST CERTIFY IN A WRITING FILED WITH THE COMMISSION UNDER PENALTY OF PERJURY THAT IT HAS:
(1) PAID ALL EMPLOYEES A LIVING WAGE IN ACCORDANCE WITH THIS SUBTITLE; AND
(2) PROVIDED OR POSTED ALL NOTICES REQUIRED BY THIS SUBTITLE.
SECTION 2. AND BE IT FURTHER ORDAINED, That the catchlines contained in this Ordinance are not law and may not be considered to have been enacted as a part of this or any prior Ordinance.
SECTION 3. AND BE IT FURTHER ORDAINED, That this Ordinance takes effect on the 30th day after the date it is enacted.
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