CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to the organization of City government; moving the Office of Labor Standards from a subsidiary unit in the Office for Civil Rights to its own unit in the Executive Department; amending the powers and duties of the Office of Labor Standards; adding Sections 3.15.000, 3.15.002, 3.15.004, 3.15.006, 3.15.008, and 3.15.009 to the Seattle Municipal Code (SMC); amending Sections 6.208.020, 14.16.010, 14.17.010, 14.19.010, 14.20.010, and 14.22.010 of the SMC; renumbering Section 3.14.934 of the SMC as Section 3.15.010; and repealing Section 3.14.945 of the SMC and Sections 3 and 4 of Ordinance 125135.

WHEREAS, in 2014, the Mayor and City Council (“Council”) convened a 16-member Labor Standards Advisory Group to offer recommendations for achieving greater compliance with Seattle’s labor standards; and

WHEREAS, the Labor Standards Advisory Group met for almost six months and unanimously recommended the creation of a centralized entity within The City of Seattle to house, implement, and coordinate all aspects of labor standards education, outreach, and enforcement; and

WHEREAS, in 2014, the Council passed Ordinance 124643 creating the Office of Labor Standards within the Office for Civil Rights; and

WHEREAS, the Office of Labor Standards became the third such agency in the country, following the San Francisco Office of Labor Standards Enforcement and the District of Columbia Department of Employment Services; and

WHEREAS, in December 2015, the Council passed the Wage Theft Prevention and Harmonization Ordinance (Ordinance 124960) to enable the Office of Labor Standards to use ground-breaking enforcement methods and impose significant remedies for non-compliance to better protect workers and deter and penalize bad actors, while leveling the playing field for businesses who are already in compliance; and

WHEREAS, the Office of Labor Standards has developed and employed innovative policy, enforcement, and outreach methods; and national advocacy groups, foundations, and scholars, such as the Center for Law and Social Policy, National Employment Law Project, Surdna Foundation, and Associate Professor Janice Fine at the Rutgers University School of Management and Labor Relations, have heralded the Office of Labor Standards’ leadership and invited staff to national conferences to share strategies and accomplishments; and

WHEREAS, the number of complaints received by the Office of Labor Standards continues to grow, and the need for additional outreach to both workers and businesses becomes more apparent; and

WHEREAS, in 2015 and through August of 2016, the Office of Labor Standards experienced a dramatic increase in investigations, opened 332 and closed 192 investigations, found 171 violations, assessed $341,367 in remedies, added four staff members, and moved into a temporary new office space to accommodate this growth; and

WHEREAS, in 2015, the Office of Labor Standards awarded $1 million in contracts to ten community organizations to raise awareness of labor standards rights among low-wage workers, who disproportionately experience wage violations; and

WHEREAS, in 2016, the Office of Labor Standards awarded $275,000 in contracts with business organizations to raise awareness of labor standards obligations among businesses owned by low-income and historically disenfranchised communities, who typically are not served by traditional outreach methods; and

WHEREAS, in April 2016, the Mayor proposed doubling the funding of the Office of Labor Standards by providing an additional $3.6 million in the 2017 budget; and

WHEREAS, in May 2016, Council passed Resolution 31662, requesting quarterly updates from the Office of Labor Standards on the development of steps necessary to implement directed investigations that are not driven by individual complaints but by strategic enforcement methods that include assessment of data regarding businesses with a high risk of committing a labor standard violation and high numbers of vulnerable workers; and

WHEREAS, in September 2016 the Council passed a fifth labor standard, Secure Scheduling (Ordinance 125135); and

WHEREAS, a free-standing Office of Labor Standards enables a unified approach to a singular mission and creates a distinct, recognizable, and consistent presence in local, state, and national communities; and

WHEREAS, all labor standards ordinances, including the Paid Sick and Safe Time (Chapter 14.16), Fair Chance Employment (Chapter 14.17), Minimum Wage (Chapter 14.19), Wage Theft (14.20), and Secure Scheduling (Chapter 14.22) Ordinances, should reflect the creation of the Office of Labor Standards as a free-standing office whose Director is subject to Council authorization; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 3.14.945 of the Seattle Municipal Code, enacted by Ordinance 124643, is repealed:

(( 3.14.945 Office of Labor Standards

There is established in the Office for Civil Rights an Office of Labor Standards, under the direction of the Mayor. There shall be a Division Director to manage the Office of Labor Standards. The Director of the Office for Civil Rights shall appoint the Division Director subject to the approval of the Mayor. The mission of the Office of Labor Standards is to protect workers’ wages, working conditions, and safety and health, and to end barriers to workplace equity for women, communities of color, immigrants and refugees, and other vulnerable workers. The functions of the Office of Labor Standards are as follows:

A. Promoting labor standards by means of outreach and education and technical assistance and training;

B. Collecting and analyzing data on the city’s work force and workplaces;

C. Administering and enforcing City of Seattle ordinances relating to minimum wage and minimum compensation (Chapter 14.19), paid sick and safe time (Chapter 14.16), use of criminal history in employment decisions (Chapter 14.17), and wage and tip compensation requirements (Chapter 14.20). ))

Section 2. A new Chapter 3.15, which includes Sections 3.15.000, 3.15.002, 3.15.004, 3.15.006, 3.15.008, and 3.15.009, is added to the Seattle Municipal Code as follows:

Chapter 3.15 Executive Department, Continued

3.15.000 Office of Labor Standards created-Functions

There is created within the Executive Department an Office of Labor Standards, under the direction of the Mayor. The mission of the Office of Labor Standards is to advance labor standards through thoughtful community and business engagement, strategic enforcement and innovative policy development, with a commitment to race and social justice. The Office of Labor Standards seeks to promote greater economic opportunity and further the health, safety, and welfare of employees; support employers in their implementation of labor standards requirements; and end barriers to workplace equity for women, communities of color, immigrants and refugees, and other vulnerable workers.

The functions of the Office of Labor Standards are as follows:

A.  Promoting labor standards through outreach, education, technical assistance, and training for employees and employers;

B.  Collecting and analyzing data on labor standards enforcement;

C.  Partnering with community, businesses, and workers for stakeholder input and collaboration;

D.  Developing innovative labor standards policy;

E.  Administering and enforcing City of Seattle ordinances relating to minimum wage and minimum compensation (Chapter 14.19), paid sick and safe time (Chapter 14.16), use of criminal history in employment decisions (Chapter 14.17), wage and tip compensation requirements (Chapter 14.20), secure scheduling (Chapter 14.22), and other labor standards ordinances the City may enact in the future.

3.15.002 Director of the Office of Labor Standards-Appointment and removal

The Director of the Office of Labor Standards shall be appointed by the Mayor, subject to confirmation by a majority vote of all members of the City Council, and may be removed by the Mayor at any time upon filing a statement of reason therefor with the City Council.

3.15.004 Director of the Office of Labor Standards-Duties

The Director of the Office of Labor Standards shall be the head of the Office of Labor Standards, shall be responsible for the administration of the Office, and shall:

A.  Administer and govern the Office of Labor Standards;

B.  Appoint, remove, supervise, and control officers and employees in the Office of Labor Standards in accordance with Civil Service rules and regulations;

C.  Undertake enforcement, policy, and education activities consistent with the mission of the Office of Labor Standards;

D.  Provide staff support for the Labor Standards Advisory Commission;

E.  Administer all ordinances pertaining to the Office of Labor Standards and take appropriate remedial action where necessary;

F.  Manage the preparation of the proposed annual budget of the Office of Labor Standards, authorize necessary expenditures, and supervise the maintenance of adequate accounting systems;

G.  After identifying priority issue areas, develop policies and programs, and seek additional funding sources in those areas that seek to advance the mission of the Office of Labor Standards;

H.  Make periodic reports and recommendations to the Mayor and City Council concerning the operations of the Office of Labor Standards, including labor standards enforcement, policy, and outreach and education activities;

I.  Partner with City departments to advance the mission of the Office of Labor Standards for employees of the City, contractors, subcontractors, and the community; and

J.  Exercise such other and further powers and duties as shall be prescribed by ordinance.

3.15.006 Adoption of rules

The Director of the Office of Labor Standards may adopt, promulgate, amend, and rescind rules and regulations in accordance with Chapter 3.02 as deemed necessary to carry out the functions of the Department.

3.15.008 Grants and donations-Information and education projects-Account in trust fund

  A. The Director of the Office of Labor Standards is authorized from time to time for and on behalf of The City of Seattle to solicit, apply for, accept and expend donations, grants and other funds and in-kind services or materials from individuals, corporations and associations, foundations and nonprofit organizations, other governments, and the public-at-large in order to produce, provide or disseminate public information and educational or advocacy materials, projects, or programs on issues relating to the enforcement and administration of the ordinances that the Office of Labor Standards administers, and to provide an acknowledgement in any of its publications to those whose assistance enabled its preparation or distribution.

  B. All donations, grants or other funds received shall be deposited into the "OLS Public Information and Educational Materials/Projects" Account, which is hereby created, in the General Donation and Gift Trust Fund. The account shall also be credited with a pro rata share of the earnings of investment of Fund balances, refunds due on expenditures from the account, and other payments that the Director and the Director of Finance and Administrative Services determine to be due. Disbursements shall be made in accordance with Section 3.15.009.

3.15.009 Appropriations and expenditures-OLS Public Information and Educational Materials Account

Effective upon their deposit, the Director of the Office of Labor Standards is authorized to submit vouchers to the Director of Finance and Administrative Services for expenditure of the funds in the OLS Public Information and Educational Materials/Projects Account established by Section 3.15.008, as the Director deems appropriate for producing, providing, or disseminating public information and educational or advocacy materials, projects or programs relating to the administrative and enforcement duties of the Office of Labor Standards. All necessary appropriations therefor are hereby made and authorized.

Section 3. Section 3.14.934 of the Seattle Municipal Code, last amended by Ordinance 125017 is renumbered 3.15.010 and further amended to read as follows:

3.15.010 Labor Standards Advisory Commission

There is established a Labor Standards Advisory Commission , which shall advise the Office of Labor Standards, Mayor, City Council, and other City departments with respect to matters affecting labor standards generally and wages, working conditions, safety, and health of workers specifically. The Commission will provide input and feedback to the (( Division )) Director of the Office of Labor Standards on the implementation of labor standards ordinances. The Commission will recommend efforts to achieve workplace equity for women, communities of color, immigrants and refugees, and other vulnerable workers. It will report on an annual basis to the Mayor and the City Council. (( It will report on an annual basis to the Mayor and the City Council. )) Its membership shall be constituted of 15 members, whose positions shall be numbered one to 15; positions one through seven shall be appointed by the Mayor (( ; )) , positions eight through 14 shall by appointed by the City Council (( ; )) , and position 15 shall be appointed by the Commission as constituted. All appointments shall be subject to confirmation by a majority vote of the City Council. The initial terms of odd-numbered positions shall be one year and the initial terms of even-numbered positions shall be two years. All subsequent terms shall be for two years. Commission members may serve up to two consecutive terms. Any vacancy in an unexpired term shall be filled in the same manner as the original appointment. A member whose term is ending may continue on an interim basis as a member with voting rights until such time as a successor for that position has been appointed and confirmed by the City Council. The appointing authority may remove any member who is absent from two or more consecutive meetings without cause.

The membership shall reflect Seattle’s workforce and businesses and include employees, employers, and representatives from the community with a demonstrated concern and background in labor standards. The Labor Standards Advisory Commission shall organize itself and adopt such rules and administrative procedures for its own governance, consistent with City Charter and ordinances, as are necessary for its functions and responsibilities.

  Section 4. Subsection 6.208.020.A of the Seattle Municipal Code, which section was enacted by Ordinance 124963, is amended as follows:

6.208.020 Denial, revocation of, or refusal to renew business license

A.  In addition to any other powers and authority provided under this Title 6, the Director, or the Director’s designee, has the power and authority to deny, revoke, or refuse to renew any business license issued under the provisions of this Chapter 6.208. The Director, or the Director’s designee, shall notify such applicant or licensee in writing by mail of the denial, revocation of, or refusal to renew (( , )) the license and on what grounds such a decision was based. The Director may deny, revoke , or refuse to renew any license issued under this Chapter 6.208 on one or more of the following grounds:

1.  The license was procured by fraud or false representation of fact.

2.  The licensee has failed to comply with any provisions of this Chapter 6.208.

3.  The licensee has failed to comply with any provisions of Chapters 5.32, 5.35, 5.40, 5.45, 5.46, 5.48, 5.50, or 5.52.

4.  The licensee is in default in any payment of any license fee or tax under Title 5 or Title 6.

5.  The property at which the business is located has been determined by a court to be a chronic nuisance property as provided in Chapter 10.09.

6.  The applicant or licensee has been convicted of theft under subsection 12A.08.060.A.4 within the last ten years.

7.  The applicant or licensee is a person subject within the last ten years to a court order entering final judgment for violations of chapters 49.46, 49.48, or 49.52 RCW, or 29 U.S.C. 206 or 29 U.S.C. 207, and the judgment was not satisfied within 30 days of the later of either:

a.  the expiration of the time for filing an appeal from the final judgment order under the court rules in effect at the time of the final judgment order; or

b.  if a timely appeal is made, the date of the final resolution of that appeal and any subsequent appeals resulting in final judicial affirmation of the findings of violations of chapters 49.46, 49.48, or 49.52 RCW, or 29 U.S.C. 206 or 29 U.S.C. 207.

8.  The applicant or licensee is a person subject within the last ten years to a final and binding citation and notice of assessment from the Washington Department of Labor and Industries for violations of chapters 49.46, 49.48, or 49.52 RCW, and the citation amount and penalties assessed therewith were not satisfied within 30 days of the date the citation became final and binding.

9.  Pursuant to subsections 14.16.100.A.4, 14.17.075.A, 14.19.100.A.4, (( and )) 14.20.080.A.4 , and 14.22.115.A.4, the applicant or licensee has failed to comply , within 30 days of service of any settlement agreement, with any final order issued by the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) , or any final order issued by the Hearing Examiner under Chapters 14.16, 14.17, 14.19, (( and )) 14.20, and 14.22, for which all appeal rights have been exhausted, and the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) has requested that the Director deny, refuse to renew, or revoke any business license held or requested by the applicant or licensee. The denial, refusal to renew, or revocation shall remain in effect until such time as the violation(s) under Chapters 14.16, 14.17, 14.19, (( and )) 14.20 , and 14.22 are remedied.

10.  The business is one that requires an additional license under this Title 6 and the business does not hold that license.

11.  The business has been determined under a separate enforcement process to be operating in violation of law.

* * *

  Section 5. Section 14.16.010 of the Seattle Municipal Code, last amended by Ordinance 124960, is amended as follows:

14.16.010 Definitions

For purposes of this Chapter 14.16:

“Adverse action” means denying a job or promotion, demoting, terminating, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, engaging in unfair immigration-related practices, filing a false report with a government agency, changing an employee’s status to nonemployee, or otherwise discriminating against any person for any reason prohibited by Section 14.16.055. “Adverse action” for an employee may involve any aspect of employment, including pay, work hours, responsibilities, or other material change in the terms and condition of employment.

“Agency” means the Office (( for Civil Rights )) of Labor Standards and any division therein.

“Aggrieved party” means an employee or other person who suffers tangible or intangible harm due to an employer or other person’s violation of this Chapter 14.16.

“Benefit year” means any fixed, consecutive 12-month period of time that is normally used by an employer for calculating wages and benefits, including: January 1 through December 31; a tax year, fiscal year, or contract year; or the year running from an employee’s one-year anniversary date of employment. An employer must provide written notice of the employer’s choice of benefit year in the employer’s policy and procedure for meeting the paid sick and paid safe time requirements of this Chapter 14.16, pursuant to subsection 14.16.045.C. If an employer transitions from one type of benefit year to another, the employer must ensure that the transition process maintains the accrual, use , and carry-over of paid sick and paid safe time hours that are required by this Chapter 14.16.

“Business” and “engaging in business” (( has )) have the same meanings as in Chapter 5.30.

“City” means (( the )) The City of Seattle.

“City department” means any agency, office, board, or commission of the City, or any Department employee acting on its behalf, but “City department” does not mean a public corporation chartered under Ordinance 103387 as amended, or its successor ordinances, or any contractor, consultant, concessionaire, or lessee.

“Director” means the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) or the (( Division )) Director’s designee.

* * *

  Section 6. Section 14.17.010 of the Seattle Municipal Code, last amended by Ordinance 124960, is amended as follows:

14.17.010 Definitions

For purposes of this Chapter 14.17:

“Adverse action” means denying a job or promotion, demoting, terminating, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, engaging in unfair immigration-related practices, filing a false report with a government agency, changing an employee’s status to a nonemployee, or otherwise discriminating against any person for any reason prohibited by Section 14.17.030. “Adverse action” for an employee may involve any aspect of employment, including pay, work hours, responsibilities, or other material change in the terms and condition of employment.

“Agency” means the Office (( for Civil Rights )) of Labor Standards and any division therein.

“Aggrieved party” means an employee or other person who suffers tangible or intangible harm due to an employer or other person’s violation of this Chapter 14.17.

“Arrest record” means information indicating that a person has been apprehended, detained, taken into custody, held for investigation, or restrained by a law enforcement agency or military authority due to an accusation or suspicion that the person committed a crime.

“City” means (( the )) The City of Seattle.

“Conviction Record” and “Criminal History Record Information” are meant to be consistent with chapter 10.97 RCW and (( means )) mean information regarding a final criminal adjudication or other criminal disposition adverse to the subject, including a verdict of guilty, a finding of guilty, or a plea of guilty or nolo contendere. A criminal conviction record does not include any prior conviction that has been the subject of an expungement, vacation of conviction, sealing of the court file, pardon, annulment, certificate of rehabilitation, or other equivalent procedure based on a finding of the rehabilitation of the person convicted, or a prior conviction that has been the subject of a pardon, annulment, or other equivalent procedure based on a finding of innocence. It does include convictions for offenses for which the defendant received a deferred or suspended sentence, unless the adverse disposition has been vacated or expunged.

“Criminal background check” means requesting or attempting to obtain, directly or through an agent, an individual’s Conviction Record or Criminal History Record Information from the Washington State Patrol or any other source that compiles and maintains such records or information.

“Director” means the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) or the (( Division )) Director’s designee.

* * *

Section 7. Section 14.19.010 of the Seattle Municipal Code, last amended by Ordinance 124960, is amended as follows:

14.19.010 Definitions

For purposes of this Chapter 14.19:

“Actuarial value” means the percentage of total average costs for covered benefits that a health benefits package will cover;

“Adverse action” means denying a job or promotion, demoting, terminating, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, engaging in unfair immigration-related practices, filing a false report with a government agency, changing an employee’s status to a nonemployee, or otherwise discriminating against any person for any reason prohibited by Section 14.19.055. “Adverse action” for an employee may involve any aspect of employment, including pay, work hours, responsibilities, or other material change in the terms and condition of employment;

“Agency” means the Office (( for Civil Rights )) of Labor Standards and any division therein;

“Aggrieved party” means an employee or other person who suffers tangible or intangible harm due to an employer or other person’s violation of this Chapter 14.19;

“Bonuses” means non-discretionary payments in addition to hourly, salary, commission, or piece-rate payments paid under an agreement between the employer and employee;

“Business” and “engaging in business” have the same meanings as in Chapter 5.30;

“City” means (( the )) The City of Seattle;

“Commissions” means a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services;

“Director” means the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) or the (( Division )) Director’s designee;

* * *

  Section 8. Section 14.20.010 of the Seattle Municipal Code, last amended by Ordinance 124960, is amended as follows:

14.20.010 Definitions

For purposes of this Chapter 14.20:

“Adverse action” means denying a job or promotion, demoting, terminating, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, engaging in unfair immigration-related practices, filing a false report with a government agency, changing an employee’s status to a nonemployee, or otherwise discriminating against any person for any reason prohibited by Section 14.20.035. “Adverse action” for an employee may involve any aspect of employment, including pay, work hours, responsibilities, or other material change in the terms and condition of employment;

“Agency” means the Office (( for Civil Rights )) of Labor Standards and any division therein;

“Aggrieved party” means an employee or other person who suffers tangible or intangible harm due to an employer or other person’s violation of this Chapter 14.20;

“City” means (( the )) The City of Seattle;

“Compensation” means payment owed to an employee by reason of employment including, but not limited to, salaries, wages, tips, overtime, commissions, piece rate, bonuses, rest breaks, promised or legislatively (( - )) required paid leave, and reimbursement for employer expenses. For reimbursement for employer expenses, an employer shall indemnify the employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of the employee’s duties, or of the employee’s obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful;

“Director” means the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) or the (( Division )) Director’s designee;

* * *

  Section 9. Section 14.22.010 of the Seattle Municipal Code, enacted by Ordinance 125135, is amended as follows:

14.22.010 Definitions

For purposes of this Chapter 14.22:

“Adverse action” means denying a job or promotion, demoting, terminating, failing to rehire after a seasonal interruption of employment, threatening, penalizing, engaging in unfair immigration-related practices, filing a false report with a government agency, changing an employee’s status to a nonemployee, or otherwise discriminating against any person for any reason prohibited by Section (( 14.22.035 )) 14.22.070 . “Adverse action” for an employee may involve any aspect of employment, including pay, work hours, responsibilities, or other material change in the terms and condition of employment.

“Agency” means the Office (( for Civil Rights )) of Labor Standards and any division therein.

“Aggrieved party” means the employee or other person who suffers tangible or intangible harm due to the employer or other person’s violation of this Chapter 14.22.

“At time of hire” means the period after offer and acceptance of employment, and on or before the commencement of employment.

“Bona fide business reason” means a significant and identifiable burden of additional costs to the employer or a significant detrimental effect on the employer’s ability to meet organizational demands, including:

1.  A significant inability of the employer, despite best efforts, to reorganize work among existing employees;

2.  A significant detrimental effect on business performance; or

3.  A significant insufficiency of work during the periods the employee proposes to work.

“City” means (( the )) The City of Seattle.

“Career-related educational or training program” means :

1.  An educational or training program;

2.  A pre-apprenticeship or apprenticeship program; or

3.  A program of study offered by a public, private, or nonprofit career and technical education school, institution of higher education, or other entity that provides academic education, career and technical education, or training, including but not limited to remedial education or English as a second language, as appropriate.

“Caregiver” means an employee who has the responsibility of providing :

1.  Ongoing care or education, including responsibility for securing the ongoing care or education of a child;

2.  Ongoing care, including the responsibility for securing the ongoing care of :

a.  An individual with a serious health condition who is in a family relationship with the employee; or

b.  A parent of the individual.

“Child” means a biological, adopted, or foster child, a stepchild, a legal ward, or a child of an individual standing in loco parentis , who is:

1.  Under 18 years of age; or

2.  18 years of age or older, and incapable of self-care because of a mental or physical disability.

“Director” means the (( Division )) Director of the Office of Labor Standards (( within the Office for Civil Rights )) or the (( Division )) Director’s designee.

* * *

Section 10. Sections 3 and 4 of Ordinance 125135 are repealed.

Section 11. This ordinance shall take effect on January 1, 2017.

Passed by the City Council the ________ day of _________________________, 2016, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2016.

____________________________________

President ____________ of the City Council

Approved by me this ________ day of _________________________, 2016.

____________________________________

Edward B. Murray, Mayor

Filed by me this ________ day of _________________________, 2016.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)