§ 50-3. Living wage.

(a)

Wages. An employer shall pay an hourly wage to each of its employees of twelve dollars nineteen cents ($12.19) per hour if the employer provides health benefits as defined herein or fourteen dollars forty cents ($14.40) per hour if the employer does not provide health benefits. An employer of an employee that customarily and regularly receives more than thirty dollars ($30.00) per month in tips may use that employee's tips as a credit against the employer's living wage obligation to the employee ("tip credit"), up to the maximum tip credit that the employer can claim at that time under the Fair Labor Standard Act (FLSA). Only tips actually received by the employee may be counted in determining whether the employee is a tipped employee and in applying the tip credit. The living wage rates set forth herein are subject to annual adjustment under paragraph (d).

A contractor shall be obligated to pay an hourly living wage to employees paid under any service contract that is executed, extended, or renewed on or subsequent to the effective date of this chapter.

(b)

Health benefits. An employer who pays the lower living wage rate of twelve dollars nineteen cents ($12.19) per hour shall provide health benefits as defined in section 50-2(h) to each of its employees and their dependents. In order to be applicable, the lower living wage rate shall only apply in the case of an employee who actually receives health care benefits as defined in section 50-2(h) and not in the case when said health benefits are just made available to the employee. If the employer is providing employee health benefits less than those specified in the definition in section 50-2(h), such employer shall be required to pay the living wage rate of fourteen dollars forty cents ($14.40) per hour unless the employee health benefits are increased to meet such definition.

(c)

Proof of health benefits. In order to qualify for the wage rate of an employer providing health care benefits under paragraph (a), an employer shall furnish proof of health care coverage and payment thereof satisfactory to an appropriate agency or department designated by the city. Such proof shall be provided by an employer not later than thirty (30) days after execution of the service contract. That proof must include a sworn statement from the employer or its carrier on behalf of the employer regarding the availability of employee health care coverage. The designated city agency or department shall make this documentation available to the mayor, common councilors, members of the living wage advisory committee, or other appropriate agencies of the city upon request.

(d)

Rate adjustment. The wage rates under paragraph (a) of this section shall be adjusted annually where required under this paragraph effective April 1st of each year following the effective date of this chapter. The percentage used to calculate the adjustment of the wage rates shall be the percentage change in the Consumer Price Index ("CPI") for All Urban Consumers (Northeast Urban) All Items for the immediately preceding calendar year (January through December) from the end of the next previous calendar year (i.e., April 1, 2006 adjustment will be based on the percentage increase, if any, of the CPI for All Urban Consumers (Northeast Urban) All Items Annual 2005 from the CPI for All Urban Consumers (Northeast Urban) All Items Annual 2004). In no event shall the wage rates be adjusted downward. In the event the CPI change is either negative or there is no change, the annual wage rates for the previous year shall remain in effect.

(e)

Notice of rate adjustments. The city shall publish an annual notice announcing the annual rates as soon as it has received the applicable Consumer Price Index. This notice shall be provided promptly to all agencies, contractors and subcontractors affected by this chapter and shall specify the rates to become effective on April 1.

(f)

Reduction in wages or hours. Nothing in this section or chapter shall require or authorize an employer to reduce the wages or hours of any employee in order for that employer to come into compliance. This section shall not be construed so as to reduce wages established under any collective bargaining agreement or applicable prevailing wage law.

(g)

Changes in job titles or job functions. An employer shall not violate the intent of this chapter by changing an employee's job title or making a non-substantial alteration in job functions or responsibilities solely to avoid the payment of a living wage.

(h)

Compensated days off. An employer shall provide to each employee twelve (12) compensated days off per year. Part-time employees shall accrue compensated days off on a pro-rated basis. An employee shall be eligible to use such accrued days off after the first six (6) months of employment or consistent with employer policy, whichever is sooner. Employers may count paid holidays and any combination of paid sick or family leave, vacation, or personal days toward provision of the twelve (12) days off.

(Gen. Ord. No. 37-2012, 12-17-12)