HomeMy WebLinkAboutCommittee of the Whole - 06 May 2024 - Agenda - Pdf
CITY OF RENTON
AGENDA - Committee of the Whole Meeting
6:00 PM - Monday, May 6, 2024
7th Floor Conferencing Center
1. RMC 5-28 UPDATE
a) Presentation
b) DRAFT Administrative Rule
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Citizen-led Initiative 23-02
Set a minimum wage of $20.29 to
be increased annually by inflation
and phased in for smaller
employers
Requires offering additional hours
to employees prior to hiring or
contracting new positions
Creates rights and penalties for
retaliation
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Summary of Steps Taken to Date:
City website to include:
•Summary of initiative
•Designated email for businesses community to ask questions/provide comments
•List of frequently asked questions
Notice to businesses
•Mailed informational letter to all licensed businesses
•Sent informational email to city businesses that opted in for Gov Delivery.
Codified Renton Municipal Code 5.28
Rule Making
•Draft will be available on website for feedback (translations available)
Annual certification process
•Update online business license renewal portal and paper form
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3 Planned Community Outreach/Feedback
On-line Feedback Survey
•Available on city website
•Notifications will be sent to businesses and "Raise the Wage Renton" requesting feedback of draft
rules
•Information will be shared in “This Week in Renton” community newsletter asking for feedback to all of
community
•Coordination with Chamber of Commerce
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4 Questions/Feedback Received to Date
Covered employer
•Employer size
•Franchise size
•Telework employees
•Out of city businesses working in
Renton
Offering additional hours of work to
part-time employees
Effective date
Exemptions
Businesses will need to increase prices to afford
increased wages
Concerns on how this has impacted other businesses
in neighboring cities with the same regulations
The ability to continue operations in Renton due to
higher costs
Smaller businesses in Renton commented they may
see higher turnover and lose employees to a covered
employer in Renton paying the higher wage
Frustration around imposed ordinance on owners with
no voice
Concerns/CommentsQuestions
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5 City Limitations on Resolving Ambiguities and Concerns
Citizen passed ordinances may only be amended or repealed through a public vote
City's administrative rule making authority is limited to how it enforces/implements the ordinance
The ordinance is designed to be primarily enforced through private legal action with judges, not
the City, interpreting ambiguities
Because the City lacks authority to revise the ordinance or bind courts to how it believes the
ordinance should be interpreted,employers and employees will be left with uncertainty as to
how the ordinance will apply to them until it is applied by the courts.
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2/23/2024
Certification
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6 Timeline of Implementation
March 2024
Notice to
Businesses
07/01/2024
Effective date of
increased wages
April 2024
Rule Making
May 2024
Outreach
June 2024
Finalize rules
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7 City Internal Impact
City hiring process changes
•Increased wages/benefits
o Supplemental (part-time summer staff)
o Regular staff
•Additional budget will be needed
•Develop process for offering additional hours
Additional administrative costs to the city
•Additional Staffing
o Up to 5 positions
•Software updates
o Online business license renewal portal
o Tax and Licensing system of record AG
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Questions?
Fred Hall – Tax & License Manager
FHALL@RENTONWA.GOV
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CITY OF RENTON
Administrative Rule
2024-1
IMPLEMENTATION OF CITIZEN-LED RENTON LABOR STANDARDS ADOPTED BY CHAPTER 5-28 RMC
CHAPTER 1: PURPOSE AND CONSTRUCTION
The purpose of this rule is to implement the citizen-led Initiative Measure 23-02 approved by voters in
February 2023, which is codified within Chapter 5-28 and Section 5-5-4 of the Renton Municipal Code
(collectively, “the Ordinance"). Employers should consult and be familiar with the Ordinance to ensure
their compliance. This rule is not intended to replace or modify the Ordinance, but only clarify critical
terminology and address procedural requirements contemplated by the Ordinance. The clarifications
provided by this rule will apply as to City initiated enforcement of the Ordinance, but Employers should
be aware that courts enforcing the Ordinance in actions brought by employees may not defer to these
rules and could interpret the applicability of the Ordinance differently than provided herein.
Accordingly, employers are cautioned to seek their own legal counsel as to interpretation of the
Ordinance.
CHAPTER 2: TERMINOLOGY
As used in the Ordinance with respect to covered employers, “gross revenue” means revenue
generated from sales made, services performed, and other business activities that occur within the
Renton city limits.
CHAPTER 3: RULES AND PROCEDURES
3-1 Establishment of Minimum Wage Rates
The City’s Finance Department will establish and publish the applicable hourly minimum wage rate for the
following year by October 15 of each year on its website, file a copy with the City Clerk, and notify the
Washington State Department of Labor & Industries.
3-2 Employer Certification of Compliance
Employers are required to certify compliance with the Ordinance at the time of submitting their
annual Renton business license renewal application. Failure to certify compliance may result in
denial or revocation of an employer’s business license.
Effective Date
Kari Roller, Finance Administrator
AGENDA ITEM #1. b)