San Diego Municipal Code Div. 48 Equal Pay Ordinance

(“Equal Pay Ordinance” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

This Division shall be known as the “Equal Pay Ordinance.” This Division’s purpose is to complement and ensure compliance with non-discrimination laws and the California Equal Pay Act and Fair Pay Act, as codified in California Labor Code section 1197.5. Through the contracting process, the City will use its purchasing power to require businesses to equalize wages between employees who perform equal or substantially similar work, regardless of gender, race, or ethnicity, to the maximum extent permitted by law. (“Title and Purpose” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

For the purposes of this Division, defined terms appear in italics. To the extent that a federal, state, or other law is referenced within this Division, the citation includes and incorporates the law as it may be amended or renumbered in the future. The following definitions apply in this Division: City means the City of San Diego, it’s organizational subdivisions, agencies, offices, commissions, or boards, but does not include independent agencies, such as the Housing Authority and the Retirement Board. Contract means any agreement between the City and another party for the provision of goods, services, consultant services, grants from the City, leases of City property, or construction of public works. Contractor means any person, firm, partnership, corporation, joint venture, or any combination of these, that enters into a contract with the City. Wages means all payments made to, or on behalf of, an employee as remuneration for employment. The term includes all forms of compensation irrespective of the time of payment, whether paid periodically or deferred until a later date, and whether called wages, salary, profit sharing, expense account, monthly minimum, bonus, uniform cleaning allowance, hotel accommodations, use of company car, gasoline allowance, or any other name. Wages also include fringe benefits and are deemed to be remuneration for employment. (“Definitions” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

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San Diego Municipal Code Chapter 2: Government (10-2017)

(a) For all contracts awarded, entered into, or extended on or after January 1, 2018, contractors shall demonstrate compliance with the California Equal Pay Act and Fair Pay Act, codified in California Labor Code section 1197.5, and as may be amended, as provided for in this Division. Nothing herein shall limit any requirements to comply with the California Equal Pay Act and Fair Pay Act. This Division shall apply as follows:

(1) To all work performed by a contractor within the City’s geographic
boundaries;
(2) To all contract related work performed by a contractor within the
State of California’s geographic boundaries; and
(3) To all contract-related work performed by a contractor on any real
property located outside of the City’s geographic boundaries that is
owned by the City or that the City has a right to occupy.
(b) This Division applies to any subcontractor who performs work on behalf of a
contractor to the same extent as it would apply to that contractor.
(c) Any contractor subject to this Division shall require all of its subcontractors
to certify compliance with this Division in its written subcontracts.
(“Applicability of Equal Pay Ordinance” added 9-15-2017 by O-20854 N.S.;
effective 10-15-2017.)

This Division does not apply to: (a) Cooperative procurement contracts, as that term is defined in San Diego Municipal Code Chapter 2, Article 2, Division 30. (b) Sole source contracts, as that term is defined in San Diego Municipal Code Chapter 2, Article 2, Division 30. (c) Contracts awarded, entered into, or extended with a contractor that employs 12 or fewer full-time equivalent employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year. (d) Public works contracts, as that term is defined in San Diego Municipal Code Chapter 2, Article 2, Division 30, of $500,000 or less. (e) Contracts for intellectual property licensing agreements. (f) Contracts where the application of this Division would violate or be inconsistent with the laws, rules, or regulations of federal or state law. (“Exceptions” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

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San Diego Municipal Code Chapter 2: Government (10-2017)

Every contractor must post a notice informing its employees of their rights under this Division in a conspicuous location in the workplace or job site. The notice shall be in a form acceptable to the City Manager. (“Notice and Posting” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

Contractors shall create contemporaneous written records that document wages paid to employees, wage rates, and job classifications. Contractors shall retain these records for a period of at least three years and allow the City reasonable access to the records upon request. A contractor’s failure to create and retain the required contemporaneous written records, or a contractor’s failure to allow the City reasonable access to the required records, shall create a rebuttable presumption that the contractor has violated this section. (Contractor Records” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

Contractors shall certify in writing to the City that they will comply with the requirements of the California Equal Pay Act and Fair Pay Act, as defined in California Labor Code section 1197.5, and as may be amended, for the duration of the applicable contract. (“Certification of Compliance” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

The City Manager may issue a written notice to the contractor if it determines that a violation of this Division exists. The notice shall inform the contractor that it must cure the violation within 30 calendar days. Contractor’s failure to cure the violation shall constitute a material breach of the applicable contract and the City may cancel, terminate, or suspend the contract in whole or in part, in addition to any other remedies or actions provided in the contract or this Code. This provision does not limit any other enforcement authority under the San Diego Municipal Code. (“Violations” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

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(a) The City Manager may develop and implement administrative policies, rules, and regulations to carry out the intent of this Division, including procedures for handling complaints. The City Manager must monitor compliance with this Division. To secure compliance with this Division, the City Manager is authorized to take any appropriate enforcement action pursuant to Chapter 1, Article 2, Division 1 of this Code. (b) The City office or department responsible for enforcing this Division must provide a summary report of its activities related to this Division each year to the City Council as part of the annual budget process. (“Administration” added 9-15-2017 by O-20854 N.S.; effective 10-15-2017.)

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Article 2: Administrative Code