Resolution _________________

A RESOLUTION requesting that the Department of Finance and Administrative Services work with the City Council and other appropriate City departments and stakeholders to strengthen implementation of any local minimum wage ordinance.

WHEREAS, across the nation, low-wage workers have stepped forward to highlight their struggle to support themselves and their families; and

WHEREAS, Seattle workers and their advocates are leading the national dialogue about economic justice and the role of government in ensuring our communities have true opportunities for advancement out of poverty; and

WHEREAS, once an individual begins working, it can be difficult to go back to school or to start building the skills that will lead to additional, higher paid employment opportunities; and

WHEREAS, under the leadership of Mayor Ed Murray, an Income Inequality Advisory Committee (IIAC) was formed and charged with delivering a set of recommendations for increasing the minimum wage in Seattle, recognizing that Seattle businesses are of a diverse size and nature and operate under many different business models; and

WHEREAS, IIAC consisted of representatives from Seattle's employer, labor, and non-profit communities; and

WHEREAS, the City Council established a Select Committee on Minimum Wage and Income Inequality (MWII Committee) composed of all nine Councilmembers; and

WHEREAS, the IIAC and MWII Committee have conducted extensive outreach with employees and employers through public hearings, small stakeholder group meetings, and individual meetings with Councilmembers; and

WHEREAS, Seattle plans to join nine other local jurisdictions that have chosen to enact a local minimum wage; and

WHEREAS, the minimum wage policy goals must include support for the growth of all small businesses and recognition that smaller businesses face unique challenges in implementing a higher minimum wage; and

WHEREAS, in order to be effective a local minimum wage must be understood by both employees and employers; and

WHEREAS, Seattle invests significantly in worker training and support intended to boost the chances low-skilled, low experience workers will get a job and, ultimately, a career; and

WHEREAS, the City has convened an advisory committee to consider ways the City can increase compliance with and strengthen the enforcement of City labor standards;

NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section 1. In order to strengthen the implementation of the local minimum wage ordinance and consider supplementing its provisions, Council requests the following:

1. Multilingual Mobile Application. The Council requests that the Department of Finance, Information Technology and other appropriate City departments develop and implement a multilingual mobile application that will allow employees to: 1) determine the minimum wage and minimum compensation they are entitled to be paid each year, and the amount of health care benefits or tips that may be counted as part of the required minimum compensation; and 2) allow employees to file a wage-theft inquiry or complaint directly with the City on the mobile application. Work on the mobile application should begin immediately after passage of a local minimum wage act. A progress report to Council should be submitted no later than September 8, 2014.

2. Multilingual Website. The Council requests that the Department of Finance, Information Technology and other appropriate City departments develop and implement a multilingual user-friendly website where employers can: 1) determine the minimum wage and minimum compensation they are required to pay their employees each year, and the amount of health care benefits or tips that may be counted as part of the required minimum compensation; and 2) determine all applicable employer requirements under the ordinance. Work on the website should begin immediately after passage of a local minimum wage act. A progress report to Council should be submitted no later than September 8, 2014.

3. Evaluation of the Local Minimum Wage Ordinance on Businesses and Workers. Council requests that the City Auditor contract with academic researchers who have a proven track record of rigorous analysis of the impacts of minimum wage laws to conduct an evaluation of the economic impacts of the local minimum wage in 2017 and 2019, after two and four years of implementation. The evaluation should include an assessment of the impact of the legislation on: employment among different classes of workers; rates of business openings and closures; prices; business profits; compliance rates; whether other worker benefits have reduced or remained unaffected; consumer spending; worker turnover and productivity; demand for state and local public assistance; purchasing power of employees covered by the law; gender and racial income disparities; and the economic security of immigrant and refugee workers. The evaluation may require baseline data collection in 2015. The review should pay particular attention to the immigrant-owned businesses and small manufacturers, employer groups that have argued that the minimum wage change in Seattle will affect them differently from other businesses. It should also pay particular attention to the frequency of non-compliance through a review of formal complaints to the City and an analysis of other relevant data sources that could show the frequency of unreported non-compliance. The review should include analysis of the available empirical data sets, such as from the United States Bureau of Labor Statistics or Washington State Labor & Industries, and interviews with employers and employees and other stakeholders when appropriate. The Council will consider the funding of this evaluation as part of the 2015 budget process.

4. Support for Education and Career Ladders. Council requests that the Department of Finance and Administrative Services work with the City Council, and other appropriate City departments to establish an interdepartmental team (IDT) of City staff to determine ways the City can: 1) assist low wage workers with the identification of pathways, opportunities and financial aid to continue their education and skill training in ways that can broaden their employment opportunities; and 2) explore mechanisms to assist employers who support their employees through continuing education and job skills training. The options the IDT should explore include expanding the definition of minimum compensation to include credit for employer assistance in employee classes, and vocational training. A workplan and anticipated schedule for this review and evaluation should be submitted to the Mayor and Council no later than September 8, 2014.

5. Minimum Wage Commission: Council recommends the City establish a Minimum Wage Commission (MWC) consisting of 15 members that will remain in existence for 5 years after the effective date of this ordinance. . The MWC shall be appointed by the Mayor and Council, subject to confirmation by a majority vote of all members of the City Council. The Commission shall have balanced representation of one-third labor, one-third business, and one-third community representatives. Representation on the committee should be diverse, including but not limited to ethnic minority owned businesses, women owned businesses, low wage workers, representatives of immigrant and refugee communities, and labor and business representatives from a variety of industries. It is anticipated that the MWC will create an important opportunity for the community to review the implementation of the new Local Minimum Wage Law. Subsequent legislation will be required to create the MWC and establish functions and prescribe duties.

6. City Employees and Contractors. Council requests that the Executive return with a plan for how the City will meet its obligations under the new minimum wage schedule. This plan should indicate how the City's own low-wage employees will advance and any steps required to meet revised wage obligations. The plan should also address steps the City should take to ensure human services providers and others with City contracts will be able to meet policy and service objectives while also meeting the new wage schedules.

Adopted by the City Council the ____ day of ____________________, 2014, and signed by me in open session in authentication of its adoption this________ day

of ______________________, 2014.

_________________________________

President ___________of the City Council

THE MAYOR CONCURRING:

_________________________________

Edward B. Murray, Mayor

Filed by me this ____ day of ________________________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Bruce Harrell/pml/de RES June 2, 2014 Version #6