Chapter 3.20 — LIVING WAGE REQUIREMENTS FOR SERVICE CONTRACTS

Editor's Note: Prior ordinance history – Parts of Ordinance No. 85-21 were previously codified in this chapter, and were not specifically repealed by the adoption of Ordinance No. 97-505.

This chapter shall be known as the "Living Wage Ordinance" of the city. (Prior code § 2715; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

This chapter is enacted for the purpose of improving the quantity and quality of services received by the city from its service contractors. It is also the purpose of this chapter to promote an economic environment that protects public resources devoted to social support services. (Prior code § 2716; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

Wherever they appear in this chapter, the following defined terms shall have the meanings provided in this section, unless it is apparent from their context that a different meaning is intended:

"City Manager" means the City Manager of the City of West Hollywood or the designee thereof.

"Contractor" means any person that enters into a service contract with the city.

"Covered grant" means any discrete financial assistance awarded by the city that is over one hundred fifty thousand ($150,000.00) per year, unless the grant-funding agency indicates that this chapter should not apply or there is a court order finding that this chapter should not apply. "Covered grant" does not include a pass through grant, i.e. a grant received by the city to transfer directly to a secondary recipient.

"Employee" means any person that both: (A) is employed by an employer or a temporary employment agency; and (B) expends any of their time in the performance of work related to a service contract. "Employee" shall not include managerial, supervisory, and confidential personnel. "Employee" also shall not include persons required to possess an occupational license.

"Employer" means any contractor or subcontractor that enters into a service contract with the city unless exempted under this chapter.

"Person" means any individual, partnership, copartnership, firm, association, joint stock company, corporation, or combination of the above in whatever form or character.

"Recipient" means any person that is awarded a covered grant by the city.

"Service contract" means a contract that: (A) is awarded to a contractor by the city primarily for the furnishing of services to, or for, the city; (B) involves an expenditure in excess of $25,000; and (C) has a term of at least three months. "Service contract" includes a contract where the city pays a contractor but is ultimately reimbursed by a third party. "Service contract" does not

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City of West Hollywood, CA § 3.20.030

WEST HOLLYWOOD CODE

§ 3.20.040

include a contract where the contractor gets paid directly by third parties, rather than by the city.

"Subcontractor" means any person that enters into a contract with a contractor to assist the contractor in the performance of a service contract. "Subcontractor" shall not include any person that is an employee of a contractor.

"Supported employment employer" means a non-profit corporation that provides supported employment jobs for individuals with most significant disabilities in an integrated employment setting, and that has been certified by the city as a supported employment employer.

"Supported employment job" means wage-paying, subsidized employment by a non-profit corporation that combines actual work, skill development, and supportive services to help participants overcome barriers to employment.

"Supportive services" includes, but is not limited to, counseling services, individual case management, pre-employment job readiness training, daily monitoring of participants while on the job, provision of unsubsidized competitive employment opportunities, and assistance in applying for, obtaining, and maintaining unsubsidized competitive employment.

"Temporary employment agency" means a contractor that, on a temporary basis, provides the city with one or more employees that work under the city's direction.

"Transitional employer" means a non-profit corporation that provides transitional jobs for the long-term unemployed, and that has been certified by the city as a transitional employer.

"Transitional job" means short-term, wage-paying, subsidized employment in a non-profit corporation that combines actual work, skill development, and supportive services to help participants overcome barriers to employment and transition to unsubsidized competitive employment.

(Prior code § 2717; Ord. 97-505 § 2, 1997; Ord. 04-693 § 1, 2004; Ord. 22-1179 § 1, 2022)

• a. Wages. On July 1, 2022, the established living wage rate in West Hollywood is $19.35 per hour. Employers shall pay employees a wage of no less than the living wage established pursuant to this section for all hours that the employee works, regardless of whether the hours worked are directly related to work on a service contract or covered grant except as set forth in Section 3.20.080(b).

• b. Compensated Time Off. Employers shall provide employees at least ninety-six compensated hours off per year for sick leave, vacation, or personal necessity at the employee's request. The provisions regarding compensated time off set forth in Municipal Code Section 5.130.030 shall apply to this chapter.

• c. Uncompensated Time Off. Employers shall provide employees at least eighty uncompensated hours off per year for sick leave for the illness of the employee or their immediate family where the employee has exhausted their compensated days off for that year. The provisions regarding uncompensated time off set forth in Municipal Code Section 5.130.030 shall apply to this chapter.

• d. Living Wage Rates Adjustments. The living wage rate shall be increased annually each July 1, beginning July 1, 2023, based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers (CPI-W), or its successor index, for the Los Angeles metropolitan area, as published by the U.S. Bureau of Labor Statistics or its successor

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City of West Hollywood, CA

REVENUE AND FINANCE

§ 3.20.040

§ 3.20.085

agency. The rate will be determined by the annual average of the twelve-month percent change for the prior year and will be posted by April 1 of each year.

• e. Records. Every employer shall retain payroll records pertaining to employees for no less than three years demonstrating compliance with this chapter.

• (Prior code § 2718; Ord. 97-505 § 2, 1997; Ord. 04-693 § 2, 2004; Ord. 11-868 § 1, 2011; Ord. 22-1179 § 1, 2022; Ord. 24-14, 5/20/2024)

Employers shall inform employees of their possible right to the earned income tax credit under federal and state law.

(Prior code § 2719; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

All service contracts shall provide that violation of this chapter shall entitle the city to terminate the contract and otherwise pursue legal remedies that may be available. (Prior code § 2720; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

Recipients of covered grants shall comply with the requirements for employers that are set forth in this chapter.

(Prior code § 2721; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

• a. General. Except as otherwise provided herein, the provisions of this chapter shall apply to: (1) employers and temporary employment agencies with whom the city consummates a service contract or an amendment to a service contract; and (2) recipients to whom the city awards a covered grant.

• b. Employees with Different Pay Rates. For employees who work on a service contract or covered grant that are paid different rates for different projects or services, the employer may pay the living wage rate for only the hours that the employee works in support of the service contract.

• c. Waiver Authorization. The City Manager may issue a waiver of the requirements of this chapter to any person submitting a bid for a service contract if the City Manager determines that such waiver is necessary to allow the person to compete fairly in the bidding process.

• (Prior code § 2722; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

The requirements of this chapter shall not apply to:

• a. Service contracts with government agencies, including federal agencies, state agencies, cities, counties, school districts, and all other public entities.

• b. Service Contracts with Supported Employment Employers. The City Manager or designee may establish a procedure to determine whether an employer may be certified as a

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City of West Hollywood, CA § 3.20.085

WEST HOLLYWOOD CODE

§ 3.20.100

supported employment employer.

• c. Service contracts where an employee is covered under the prevailing wage requirements of the California Labor Code.

• d. Any person that has been issued a waiver pursuant to Section 3.20.080(b).

• e. Any person that has been awarded a grant by the city that is not a covered grant. (Ord. 22-1179 § 1, 2022)

Transitional employers may pay each employee in a transitional job an hourly wage that is below the living wage set forth under this chapter during the first eighteen months of the employee's work in the transitional job. The City Manager or designee may establish a procedure to determine whether an employer may be certified as a transitional employer. (Ord. 22-1179 § 1, 2022)

The City Manager or designee shall be responsible for implementing the provisions of this chapter, monitoring compliance, investigating claimed violations and evaluating as necessary this chapter's operation and effectiveness.

(Prior code § 2723; Ord. 97-505 § 2, 1997; Ord. 04-693 § 3, 2004; Ord. 22-1179 § 1, 2022)

The provisions of this chapter, or any part thereof, which are applicable to an employer subject to this chapter, may be waived through a bona fide collective bargaining agreement to which the employer is a party, but only if the waiver is explicitly set forth in such agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute or be permitted as a waiver of all or any part of the provisions of this chapter. The waiver shall be submitted in writing to the City Manager, or designee.

(Ord. 04-693 § 4, 2004; Ord. 22-1179 § 1, 2022)

Except for bona fide collective bargaining agreements, any waiver by an employee of any provisions of this chapter shall be deemed contrary to public policy, a violation of the service contract, and shall be void and unenforceable. (Ord. 22-1179 § 1, 2022)

The City Manager or designee is authorized to adopt administrative regulations that are consistent with the provisions of this chapter. Violations of the administrative regulations adopted pursuant to this section shall constitute violations of this chapter and shall subject the violator to the penalties set forth in this chapter. (Ord. 22-1179 § 1, 2022)

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City of West Hollywood, CA § 3.20.100

REVENUE AND FINANCE

§ 3.20.110

• a. Any aggrieved person may enforce the provisions of this chapter by means of a civil action.

• b. Any person who violates the provisions of this chapter or who aids in the violation of any provisions of this chapter shall be liable for, and the court shall award to the individual whose rights are violated, the following: actual damages; costs; attorney's fees; and not less than $250 but not more than $10,000 in addition thereto. In addition, the court may award punitive damages in a proper case.

• c. Actions to enforce the provisions of this chapter must be filed within one year of the alleged violation.

• d. Nothing in this chapter shall preclude any aggrieved person from seeking any other remedy provided by law.

• e. Nothing in this chapter shall be construed to limit any aggrieved person's right to bring legal action for violation of other minimum compensation laws.

• (Prior code § 2724; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

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

(Prior code § 2725; Ord. 97-505 § 2, 1997; Ord. 22-1179 § 1, 2022)

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City of West Hollywood, CA § 3.24.010

REVENUE AND FINANCE

§ 3.24.050