This Chapter shall be known and may be cited as the “City of Richmond Living Wage Ordinance.” The purpose of this Chapter is to protect the public health, safety and welfare. It does this by requiring that employees of City contractors, lessees, recipients of City financial aid and their respective subcontractors expend public funds in such a manner as to facilitate individual self-reliance.

The City Council of the City of Richmond finds as follows:
(a) The City of Richmond awards many contracts to private firms to provide services to the public and to City Government; and
(b) The City of Richmond provides financial assistance and funding to others for the purpose of economic development or job growth; and
(c) The city of Richmond has a limited amount of taxpayer resources to expend; and
(d) Even in promising economic times, far too many people working in Richmond and their families live below or near the poverty line; and
(e) The use of taxpayer dollars to promote sustenance and creation of living wage jobs will increase consumer income, decrease levels of poverty, invigorate neighborhood businesses and reduce the need for taxpayer-funded social programs in other areas; and
(f) When inadequate compensation is paid to service employees within the City, it fails to provide service employees with resources sufficient to afford life. It is critical that when City funds are used to contract for services, such contracts demonstrate an effort to promote an employment environment that enhances the general quality of life within the community and maximizes the productive effect of the City’s limited resources; and
(g) Financial assistance recipients of the City are engaged in hospitality or some other line of business that is an integral part of the City of Richmond economy and such entities often pay wages at or slightly above the minimum required by federal and state minimum wage laws. The City as a provider of subsidies to these entities has the same interest in requiring the payment of a higher minimum level of compensation to employees of financial assistance recipients as it does of service contractors; and
(h) The City’s use of contractors or subsidies to businesses, which do not provide health insurance to their employees, often results in imposing the costs of their medical care on the county, state and federal governments. The City has an interest in avoiding such impacts, which the City finds can only be done if the employer provides health insurance in a reasonable form. The city finds that an employer contribution for health benefits of at least $1.50 per hour on average is necessary to provide employee health care sufficient to avoid imposing the public costs described above. The City also has an interest in ensuring that persons delivering City services are healthy, and that a lack of health care can affect employee performance and absenteeism. The City finds that employees are far likelier to be healthy if their employer provides reasonable health insurance to them and their dependents. In addition, one of the City’s reasons for providing financial assistance is to promote the public health, an interest served by having employers receiving such assistance spend a reasonable portion of this money for health purposes; and
(i) The payment of a higher minimum level of compensation as required by the Ordinance codified This chapter benefits these interests.

The following words and phrases whenever used in this Chapter shall be construed as defined in this section:
(a) “City” means the City of Richmond and all City agencies, departments and offices, including the Richmond Redevelopment Agency, the Richmond Housing Authority and the Port of Richmond.
(b) “City financial aid recipients” means all persons or entities that receive from the City direct assistance in the form of grants, loans or loan guarantees, in-kind services, waivers of City fees, real property or other valuable consideration in the amount of more than $100,000 in any twelve (12)-month period. This term shall not include those who enjoy an economic benefit as an incidental effect of City policies, regulations, ordinances, or charter provisions. The following shall not be deemed to be direct assistance: (1) enterprise zone tax credits within the City of Richmond pursuant to the California State Department of Commerce Enterprise Zone program, or (2) an agreement with the City of Richmond whereby the specific entity has negotiated a not-to-exceed amount or percentage with regards to the amount of utility user taxes that the entity will be subject to within any twelve (12) month period.
(c) “Contractor” means any person or entity that enters into a contract or a franchise agreement with the City in an amount equal to or greater than twenty-five thousand dollars ($25,000.00).
(d) “Employee” means any person who is employed:
(1) As a service employee of a contractor or subcontractor under the authority of one or more service contracts and who expends any of his or her time thereon, including but not limited to: hotel employees; restaurant, food service or banquet employees; janitorial employees; security guards; parking attendants; health care employees; gardeners; waste management employees; and clerical employees; or
(2) By a City financial aid recipient and who expends at least twenty-five percent (25%) of his or her time on the funded project/program or property which is the subject of City financial assistance; or
(3) By a service contractor of a City financial aid recipient and who expends at least twenty-five percent (25%) of his or her time on the premises of the City financial aid recipient and is directly involved with the funded project/program or property which is the subject of city financial assistance; or
(4) By a leaseholder and who expends at least twenty-five percent (25%) of his or her compensated time on the leased property, or engaged in work directly related to the license, concession or franchise;
(5) By the City of Richmond, or by the City’s agencies, departments or offices.
Any person who is a managerial, supervisory or confidential employee is not an employee for purposes of this definition.
(e) “Employer” means any person who is a City financial assistance recipient, leaseholder, or a contractor or subcontractor. For the purposes of this Chapter, the term “employer” shall also mean the City of Richmond, and its agencies, departments and offices.
(f) “Leaseholder” means any person that enters into an agreement with the City for any lease of public property, license, concession or franchise and which employs twenty-five (25) or more employees and generates $350,000 or more in annual gross receipts.
(g) “Non-profit” shall mean a non-profit organization described in Section 501c of the Internal Revenue Code of 1954 which is exempt from taxation under Section 501(c) of that code, or any nonprofit educational organization qualified under Section 233701(d) of the Revenue and Taxation Code.
(h) “Person” means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association or other entity that may employ individuals or enter into contracts.
(i) “Service contract” means:
(1) A contract let to a contractor by the City for the furnishing of services, to or for the City, except contracts where services are incidental to the delivery of products, equipment or commodities, and that involves an expenditure equal to or greater than twenty-five thousand dollars ($25,000.00); or
(2) A lease or license under which service contracts are let by the lessee or licensee.
A contract for the purchase or lease of goods, products, equipment, supplies or other property is not a “service contract” for the purposes of this definition.
(j) “Subcontractor” means any person who enters into a contract with:
(1) A contractor to assist the contractor in performing a service contract; or
(2) A City financial aid recipient designated to assist the recipient in performing the work for which the assistance is being given or to perform services on the property which is the subject of City financial assistance.
Service contractors of City financial aid recipients shall not be regarded as subcontractors except to the extent provided by the definition of “employee” in this section.
(k) “Trainee” shall mean a person enrolled in a job training program which meets the City job training standards.

The persons and entities described below shall comply with the minimum compensation standards established by this Chapter to the employees specified herein:
(a) For-profit vendors of services, which employ ten (10) or more full-time employees and receive contract(s) for $25,000 or more in a twelve-month period. Compliance shall be required during the term of said contract(s) as to any employees who spend 25% or more of their compensated time engaged in work directly related to the said contract(s).
(b) Non-profit vendors of services, which employ ten (10) or more full-time employees and receive contracts of $100,000 or more in a twelve-month period. Compliance shall be required during the term of said contract as to any employees who spend 50% or more of their compensated time engaged in work directly related to a City contract.
(c) Lessees of public property, licensees, concessionaires and franchisees, which employ twenty-five (25) or more full-time employees and generate $350,000 or more in annual gross receipts. Compliance shall be required during the lease, license, concession or franchise term with regard to any employees who spend twenty-five percent (25%) or more of their compensated time on the leased property, or engaged in work directly related to the license, concession or franchise.
(d) City financial aid recipients, which receive more than $100,000 in loans or other cash and/or non-cash assistance in any twelve-month period. Compliance shall be required for a period of five (5) years following receipt of the aid with regard to full-time employees who spend twenty-five percent (25%) or more of their compensated time engaged in work directly related to the purpose for which the City provided the aid.
(e) Subcontractors of any of the entries, persons, or recipients described in subparagraphs (a) through (d). Compliance shall be required during the term of the contract between the City and the prime contractor or City financial aid recipients to any full-time employees who spend 25% or more of their compensated time engaged in work directly related to the City contract, or agreement providing financial aid.

(a) Any employer which contends that it is unable to pay all or part of the living wage must provided a detailed explanation in writing to the City Manager (or the City Manager’s designee) who may recommend a waiver to the City Council.
(b) The explanation must set forth the reasons for its inability to comply with the provisions of this Chapter, including a complete cost accounting for the proposed work to be performed with the financial assistance sought, including wages and benefits to be paid all employees, as well as an itemization of the wage and benefits paid to the five highest paid individuals employed by the employer.
(c) The employer must also demonstrate that the waiver will further the interests of the City of Richmond in creating training positions which will enable employees to advance into permanent living wage jobs or better and will not be used to replace or displace existing positions or employees or to lower the wages of current employees.
(d) The City Council may grant a waiver only upon a finding and determination that the employer has demonstrated economic hardship and that waiver will further the interests of the City of Richmond in providing training positions which will enable employees to advance into permanent living wage jobs or better.
(e) However, no waiver will be granted if the effect of the waiver is to replace or displace existing positions or employees or to lower the wages of current employees.
(f) Waivers from the Chapter are disfavored, and will be granted only where the balance of competing interests weighs clearly in favor of granting the waiver.
(g) If waivers are to be granted, partial waivers are favored over blanket waivers. Moreover, any waiver shall be granted for no more than one year. At the end of the year, the employer may reapply for a new waiver which may be granted subject to the same criteria for granting the initial waiver.
(h) The City Council of the City of Richmond reserves the right to waive the requirements of this chapter upon a finding and determination of the City Council that a waiver is in the best interests of the City of Richmond (e.g., when the City has declared an emergency due to natural or man-made disasters or war and the need exists for immediate services).
(i) All of the provisions of this Chapter, or any part hereof, may be waived by a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in such agreement in clear and unambiguous terms.

Except as provided in Section 2.60.080, an employer subject to this Chapter pursuant to Section 2.60.040 shall provide to its covered employees the following minimum compensation terms for the duration of the covered period:
(a) Wages. If the employer pays at $1.50 per hour per employee towards an employees medical benefits plan, which allows the employees to receive employer-compensated care from a licensed physician, the employer shall pay employees an hourly rate of not less than $11.42. If the employer does not provide the employees with such a medical benefit plan, the employer shall pay employees an hourly wage of not less than $12.92. The hourly wage rate required by this section may be adjusted or modified by resolution of the City Council.
(b) Time-off. Employees shall be entitled to at least 22 days off per year for sick leave, vacation, or personal necessity. Twelve (12) of the required days off shall be compensated at the same rate as regular compensation for a normal working day. Ten (10) of the required 22 days may be uncompensated days off. Employees who work part-time shall be entitled to accrue compensated days off in increments proportional to that accrued by full-time employees. Employees shall be eligible to use accrued days off after the first six (6) months of satisfactory employment or consistent with employer policy, whichever is sooner. Paid holidays, consistent with established employer policy, may be counted toward provision of the required 12 compensated days off.
(c) Additional compensation permissible. Nothing in this Chapter shall be construed to limit an employer’s discretion to provide greater wages or time-off to its employees.
(d) The wage rates required in (a), above, shall be adjusted annually, effective January 1, to reflect the average percent of wage increases embodied within the City of Richmond’s employee labor agreements for the immediately preceding calendar year.

Every City contract, least, license, concession agreement, franchise agreement or agreement for financial aid with an employer described in Section 2.60.040 or amendment thereto shall contain provisions requiring it to comply with the requirements of this Chapter as they exist on the date when the employer entered its agreement with the City or when such agreement is amended. Such contract provisions shall address the employer’s duty to promptly provide to the City documents and information verifying its compliance with the requirements of this Chapter, and sanctions for non-compliance. Such contract provisions shall also require the employer to notify each of its affected employees with regards to the wages that are required to be paid pursuant to this Chapter.

(a) The requirements of this Chapter shall not be applicable to the following employees:
(1) An employee participating in a temporary job-training program in which a significant component of the employee’s training consists of acquiring specialized job readiness knowledge, abilities or skills (e.g., the importance of proper work attire, punctuality and workplace demeanor.);
(2) An employee who is under 21 years of age, employed by a non-profit entity for after school or summer employment or as a trainee for a period not longer than 120 days;
(3) An employee working for the employer for a period not exceeding six (6) months in aggregate during any twelve (12) month period;
(4) Volunteers;
(5) Employees of contractors on City public works projects subject to the requirements of Division 2, Part 7, of the California Labor Code, when said code requires compensation greater than that required by this Chapter;
(6) Employees who are standing by or on-call according to the criteria established by the Fair Labor Standards Act, 29 U.S.C. Section 201. This exemption shall apply only during the time when the employee is actually standing by or on-call;
(7) An employee for whom application of the requirements of this Chapter is prohibited by state or federal law;
(8) An employee subject to a bona fide collective bargaining agreement where the waiver of the provisions of this Chapter are set forth in clear and unambiguous terms in such an agreement;
(9) An employee whose employer employs fewer than ten employees for each working day in each of twenty (20) or more calendar weeks in the current or preceding calendar year.

(a) No employer shall retaliate or discriminate against an employee in his or her terms and conditions of employment by reason of the person’s status as an employee protected by the requirements of this Chapter.
(b) No employer shall retaliate or discriminate against a person in his or her terms and conditions of employment by reason of the person reporting a violation of this Chapter or for prosecuting an action for enforcement of this Chapter.

(a) An employee who alleges violation of any provision of the requirements of this Chapter may report such acts to the City. The City Manager may establish a procedure for receiving an investigating such complaints and take appropriate enforcement action.
(b) Any complaints received shall be treated as confidential matters, to the extent permitted by law. Any complaints received and all investigation documents related thereto shall be deemed exempt from disclosure pursuant to California Government Codes Sections 6254 and 6255.

(a) An employee claiming violation of this Chapter may bring an action in the Superior Court of the State of California, as appropriate, against an employer and obtain the following remedies:
(1) Back pay for each day during which the employer failed to pay the compensation required by this Chapter;
(2) Reinstatement, compensatory damages and punitive damages;
(3) Reasonable attorney’s fees and costs.
(b) Notwithstanding any provision of this Chapter or any ordinances to the contrary, no criminal penalties shall attach for any violation of this Article.
(c) No remedy set forth in this Chapter is intended to be exclusive or a prerequisite for asserting a claim for relief to enforce any rights hereunder in a court of law. This Chapter shall not be construed to limit an employee’s right to bring a common law cause of action for wrongful termination.
(d) Nothing in this Chapter shall be interpreted to authorize a right of action against the City.
(Source: Ordinance No. 29-01 N.S.)