Ventura County Municipal Code Ch. 9.5 "Living Wage" Ordinance

Footnotes:

--- (11) ---

Editor's note— Ord. No. 4464(Revised), § 1, adopted June 24, 2016, repealed the former Ch. 9.5, §§ 4950—4967, and enacted a new Ch. 9.5 as set out herein. The former Ch. 9.5 pertained to similar subject matter and derived from Ord. No. 4464, § 1, adopted June 24, 2014.

This Chapter shall be known as the County of Ventura "Living Wage Ordinance."

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

The Board of Supervisors finds that the County of Ventura is the principal provider of social and health services within the County, especially to persons who are compelled by economic constraints to turn to the County for such services. Employers' failure to pay a living wage to their employees may cause individuals to use such services, thereby placing a burden on the County's limited resources. To alleviate the strain on County services and to help promote within the region an acceptable living standard for working residents Ventura County is instituting a living wage policy as described herein.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

Whenever they appear in this Chapter, the following terms shall have the meanings provided in this Section, unless it is apparent from the context that a different meaning is intended:

(a) "Awarding authority" means the County department, officer or agency that awards or is otherwise responsible for the administration of a service contract.

(b) "County" means the County of Ventura, any county officer or body, any county department or agency head, and any County employee authorized by the Board of Supervisors to enter into a contract with an employer.

(c) "Contractor" means a person or entity that enters into a "service contract" with the County.

(d) "Employee" means an individual, other than a managerial, supervisory or confidential employee, who is permanently or temporarily employed by a County contractor or subcontractor and who expends at least four (4) hours per week performing services during any applicable pay period on work funded (in whole or in part) pursuant to a service contract as defined under this Chapter. Employee does not include an individual who is (1) under the age of twenty-one (21) and a worker classified as a student trainee or intern (2) nor does it include anyone, regardless of age, who is providing services to earn academic credit or as part of a formal time specific training program. Employee also does not include a person providing volunteer services.

(e) "Subcontractor" means any person or entity, other than an employee, that enters into a contract with a contractor to assist the contractor in the performance of a "service contract." The term "subcontractor" specifically includes personnel leasing agencies, temporary employee agencies, and other persons or entities, other than an employee, who supply personnel to a contractor for the purpose of performing the services covered by a "service contract."

(f) "Service contract" means a contract for "services" entered or to be entered into by the County with another person or entity that: (1) involves an expenditure in excess of twenty-five thousand ($25,000.00) dollars, within a twelve (12) month period; and (2) has a term of at least three (3) months. Where the same person or entity has or will have two (2) or more contracts with the County that would qualify as service contracts under this definition except that one (1) or more of the contracts does not involve an expenditure in excess of twenty-five thousand ($25,000.00) dollars within a twelve (12) month period, if the contracts taken cumulatively will involve such an expenditure, each such contract shall be deemed a "service contract."

A "service contract" specifically does not include:

(1) A contract subject to federal or State laws or regulations that would preclude application of the living wage requirement otherwise applicable pursuant to this Chapter;

(2) A contract between the County and another governmental entity;

(3) A contract between the County and a financial or banking institution for financial or banking services;

(4) A contract for professional services requiring specialized skills or licensure, including but not limited to experts, consultants, auditors, engineers, attorneys, and banking representatives;

(5) A contract with a non-profit corporation qualifying under Internal Revenue Code section 501(c)(3).

(g) "Services" means labor intensive services which, normally depend upon employees with skill levels that are compensated in the market below the level of the living age set forth in this Chapter. Such services are characterized by, but not limited to, the following service categories.

(1) Automotive repairs and maintenance;

(2) Food services;

(3) Janitorial and custodial services;

(4) Landscaping;

(5) Laundry services;

(6) Office and clerical services, courier services, and mail delivery;

(7) Maintenance of real and personal property owned by the County;

(8) Pest control;

(9) Towing;

(10) Street sweeping;

(11) Hauling of waste or recyclable materials;

(12) Security; or

(13) Temporary services.

"Services" specifically does not include the provision of goods or products or a lease or concession agreement for property or operations in connection with such a contract, lease or concession agreement.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

(a) Contractors and subcontractors providing services to the County pursuant to a service contract shall pay employees providing services pursuant to the service contract a wage of no less than the living wage set forth in this Chapter.

(b) The requirements of this Section apply to subcontractors of a service contract contractor if the subcontractor employees are engaged in County funded services.

(c) The County Purchasing Agent and all County departments and agencies are directed to incorporate appropriate language into all relevant bid documents, requests for proposals and similar materials relating to "service contracts," and into all purchase order and other service contracts, issued, renewed, or extended on or after the effective date of this Chapter, requiring the contractor and any subcontractors to comply with the requirements of this Chapter.

(d) Annually, each awarding authority within the County is directed to submit information to the County Purchasing Agent regarding the status of service contracts within its purview. Commencing February 2002, and during each subsequent February, the Purchasing Agency will prepare and submit a report to the Chief Administrative Office listing those contracts which require payment of a living wage rate pursuant to this Chapter. In order to assess the impact of this Chapter the report will include information on the number of employees affected, whether affected employees received health benefits and the cost attributable to the required wage increase. The report will also list any contract which would have been subject to this Chapter, but which was granted a waiver, the reason for waiver and finally a projection of what contractual services are being renewed or let in the coming fiscal year which may be subject to the living wage and a projection of increased cost attributable to the living wage.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

(a) Contractors and subcontractors shall pay employees a living wage for services financed by County funds. As used in this Section, the "living wage" means no less than ten dollars and fifty cents ($10.50) per hour with health benefits, otherwise no less than twelve dollars and fifty cents ($12.50) per hour.

(b) The living wage rate set forth in subdivision (a) shall be automatically reviewed for ensuring fiscal years in proportion to the increase in the Consumer Price Index-W (Urban Wage Earners and Clerical Workers not seasonally adjusted for the U.S. city average) for the preceding calendar year or years, utilizing 2014 as the base year. Commencing in January 2015, and annually in January thereafter, the County Executive Office will calculate the percentage increases and give official notice to the Board of the percentage increase and the corresponding monetary increase when applied to the lower living wage rate. Whenever the increase (or cumulative yearly increases) in the CPI-W indicates that an adjustment of approximately fifty cents ($0.50) or more, rounding down, is in order, the applicable living wage rates shall be automatically adjusted by fifty cents ($0.50) unless the County Executive Officer reports to the Board of Supervisors that he/she believes such an increase would unduly burden the County budget. Upon such a report, any increase will require the review and approval of the Board of Supervisors to take effect. The specified rates shall then apply with respect to new service contracts or service contracts that are renewed on or after the first day of that new fiscal year. Pursuant to the Board's direction the County Executive Office will notify the public, all awarding authorities and affected contractors of the living wage rates that will be applicable for the ensuing fiscal year. Affected contractors shall provide written notification of the rate adjustments to each of their affected subcontractors and employees, and affected contractors and subcontractors shall make payroll adjustments as necessary to implement the adjusted rates.

(c) Health benefits required by this Section shall consist of the payment of at least two dollars ($2.00) per hour towards the provision of health care benefits for the employee and his/her dependents. The contractor or subcontractor must provide written proof of the provision of such benefits to the County Purchasing Agent or other awarding authority during the procurement or contracting process.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

A contractor or subcontractor shall provide compensated time off to regular employees who have successfully completed probation. The length of probation shall be the same as that applied to other employees except in no instance shall it exceed six (6) months. Full time employees shall accrue one (1) compensated day off per month of full time employment. Part-time employees shall 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 employment or consistent with written company policy regarding probationary periods. Paid holidays, consistent with established employer policy, may be counted toward provision of the required twelve (12) compensated days off.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

(a) Small Employer Exemption. A contractor or subcontractor shall be deemed exempt from this Chapter if it employs no more than the equivalent of five (5) full time persons for each working day in each of twenty (20) or more calendar days in the current or preceding calendar year.

(b) Government Entities. This Chapter shall not apply to contracts with governmental agencies, including, without limitation, cities, counties and state agencies.

(c) Collective Bargaining. To the extent that any collective bargaining agreement applies to an employee who would otherwise be entitled to be paid a living wage pursuant to this Chapter, this Chapter shall not apply.

(d) Board and Care Services. This Chapter shall not apply to any employee providing board and care services pursuant to a contract with the County.

(e) Printing/Copying Services. This Chapter shall not apply to any employee providing printing/copying services pursuant to a contract with the County.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

A bid documents and service contracts for services, as defined in Section 4952(f), are to contain the following paragraph or substantially similar language:

"This contract is subject to the County of Ventura Living Wage Ordinance. The Ordinance requires the payment of a living wage and accompanying paid time off to all covered employees engaged in providing services pursuant to a service contract as defined in Section 4952(f). Misrepresentation during the procurement or contracting process in order to secure the contract will disqualify a bidder or contractor from further consideration in the procurement or contracting process. Failure to comply once a contract has been awarded will constitute a material breach of the contract and may result, among other things, in the suspension or termination of the affected contract and debarment from future County contracting opportunities for a period not to exceed three (3) years."

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

(a) During the term of a service contract, the contractor and any subcontractor shall certify to the County and maintain documentation demonstrating that each employee employed the requisite amount of time under this Chapter on County financed activities is (1) being compensated at the living wage rate while working in connection with services provided pursuant to the service contract and, (2) for those employees being compensated at the lower rate with health benefits specified in Section 4954, documentation must be maintained demonstrating that each such employee was provided health benefits. Such documentation must be retained for at least two (2) years following completion or termination of the contract. County representative shall be permitted to review and make copies of such documentation at all reasonable times during performance or following completion or termination of the service contract.

(b) Contractors and any known subcontractors must demonstrate during the procurement or contracting process and for the duration of the service contract the financial ability to pay a living wage.

(c) Contractors shall furnish to County with each invoice for services rendered a certification(s), under penalty of perjury, by contractor that the contractor and any subcontractor are in full compliance with the provision of the County of Ventura "Living Wage Ordinance." The certification shall be in substantially the following language.

"I hereby certify under penalty of perjury, under the laws of the State of California, which the services invoiced have been rendered and that contractor and any subcontractor(s) are in full compliance with the provisions of the County of Ventura "Living Wage Ordinance."

(d) Contractors and subcontractors must provide written notice to each covered employee who is engaged in work pursuant to a service contract. The notice shall specify the living wage rate, minimum health benefit, if applicable, and compensated time off as well as notice that an employee has grievance rights if he/she believes his/her rights under the Living Wage Ordinance are being violated. A copy of the notice must be made available to all covered employees, must be posted prominently in languages spoken by a large percentage of the workforce, and a copy must be submitted to the awarding agency.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

Responsibility for administration of this Chapter will be shared among awarded authorities, the County Purchasing Agent, and County Executive Office as described under Sections 4953, 4954 and 4958. The County Executive Office will be responsible for general oversight of this Chapter and for developing an administrative procedures manual detailing how this Chapter is to be applied, and describing complaint and appeal processes for determining compliance with this Chapter.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

If a contractor violates any provision of this Chapter, the awarding agency may initiate, and the County may take one (1) or more of the following actions:

(1) Suspend or terminate the contract;

(2) Require the contractor to pay any amounts underpaid in violation of this Chapter as a condition of avoiding suspension or termination;

(3) Recommend to the Board of Supervisors that a contractor or subcontractor be barred from award of future County contracts or subcontractors for a period of time consistent with the seriousness of the violation, not to exceed three (3) years.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

An employer shall not use any consideration received under a service contract to hinder, or to further, organization of, or collective bargaining activities by or on behalf of an employer's employees, except that this restriction shall not apply to any expenditure made in the course of good faith collective bargaining, or to any expenditure pursuant to obligations incurred under a collective bargaining agreement, or which would otherwise be permitted under the provisions of the National Labor Relations Act.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

An employee who believes his/her rights have been violated under this Chapter may file a grievance with the County Executive Office within one (1) year of the alleged violation. Grievances are to be reviewed within a sixty-day period. If the complaint is substantiated then a number of administrative remedies may be applied including:

(a) Restitution of the difference in wages paid and the appropriate living wage rate may be required for complainant and all co-workers similarly affected;

(b) Suspension or termination of existing contract; and/or

(c) Debarment for a period of years.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

No employer shall take an adverse action causing a loss of any benefit of employment, of any contract benefit or any statutory benefit to any employee, who has reported a violation or perceived violation of this Chapter to the Board of Supervisors, the County Executive Officer, an awarding authority, or the Purchasing Agent.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

This Chapter shall not be construed to limit any employee's rights to bring any legal action for violation of his/her rights under the Chapter. An employee may bring an action against a contractor or subcontractor in the courts of the State of California for damages caused by an employer's violation of this Chapter.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

Notwithstanding any provision of this Code or any other ordinance to the contrary, no criminal penalties shall attach for any violation of this Chapter.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

This Chapter shall apply only to new contracts or contract extensions or renewals made after the effective date of this Chapter that are for a term or extended term beginning on or after July 1, 2001.

(Ord. No. 4464(Rev.), § 1, 6-24-2016)

This Chapter shall apply only to new contracts or contract extensions or renewals made after the effective date of this Chapter that are for a term or extended term beginning on or after July 1, 2001.

(Ord. No. 4464, § 1, 6-24-2014)