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HomeMy WebLinkAboutCommittee of the Whole - 15 Jul 2024 - Agenda - Pdf CITY OF RENTON AGENDA - Committee of the Whole Meeting 5:45 PM - Monday, July 15, 2024 7th Floor Council Chambers/Videoconference 1. LABOR STANDARDS DISCUSSION a) Presentation b) DRAFT Ordinance If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/86753290028?pwd=M2pOc09HWWNrY05uVnlIWnpGS1E4UT09 Zoom Meeting ID: 867 5329 0028, Passcode: 881839 You can call through Zoom at (253) 215-8782 and use the Meeting ID. City of Renton Labor Standards Discussion JULY 15, 2024 AG E N D A I T E M # 1 . a ) City Council referred to Administration to bring forward potential changes to: Remove nonwage related labor standards Clarify wage requirements and exemptions AG E N D A I T E M # 1 . a ) Areas of Focus Clarifying Covered Employers Aligning Nonwage Requirements with State Law Clarifying Renton Wage Calculation AG E N D A I T E M # 1 . a ) Feedback Received Size of Business ◦Small businesses defined elsewhere to be 50 or less employees ◦Franchisees should be based on number employees Nonwage related labor standards ◦Confusing/contradictory with state laws ◦Cumbersome/expensive Businesses are concerned about additional increased costs ◦May have to close or move business ◦Not including tips in increased minimum wage Without the full initiative text on the ballot, voters didn’t realize the initiative included other requirements other than the minimum wage. AG E N D A I T E M # 1 . a ) Suggested Changes AG E N D A I T E M # 1 . a ) Adjust Definition of Size of Business Small Employer: 50 or less employees Medium Employer: 51-499 employees Large Employer: Over 500 employees Franchisees categorized by its number of employees AG E N D A I T E M # 1 . a ) Minimum Wage Rate No Change to Rate State minimum wage + $4.00 Tips will be included in the City’s higher minimum wage AG E N D A I T E M # 1 . a ) Nonwage Related Standards Remove restrictions on hiring additional employees and contractors Follow state enforcement laws AG E N D A I T E M # 1 . a ) Next Steps 1 Approve Committee Report Request staff to finalize legislation that would send proposed changes to the November general election and authorize the administration to solicit pro/con committee members 2 Staff will finalize legislation Any changes needed to the current draft legislation would need to be communicated by July 22nd council meeting 3 Legislation proposed by August 5th The legislation will be presented to Council for adoption by the August 5th council meeting 4 November General Election If the legislation is passed, the proposed legislation will be submitted to King County to place on the ballot for the November general election AG E N D A I T E M # 1 . a ) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, REPEALING INITIATIVE NO. 23-02 AND ADOPTING A NEW MINIMUM WAGE WITHIN CHAPTER 5-28 OF THE RENTON MUNICIPAL CODE, AUTHORIZING CORRECTIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. Initiative Measure No. 23-02, which is codified as Chapter 5-28 of the Renton Municipal Code and Section 5-5-4, is repealed in its entirety and replaced with a new Chapter 5-28 of the Renton Municipal Code to read as follows: CHAPTER 28 RENTON MINIMUM WAGE 5-28-1: Minimum Wage for Hours Worked in Renton 5-28-2: Exceptions 5-28-3: Definitions 5-28-4: Enforcement 5-28-5: Future Law Changes 5-28-6: Rulemaking 5-28-1 MINIMUM WAGE FOR HOURS WORKED IN RENTON: A. Starting January 1, 2025, every employer shall pay its employees wages for all hours worked within the City at a rate of not less than $4 per hour more than the state-wide minimum wage established pursuant to RCW 49.46.020, and adjusted as the state minimum wage is adjusted annually for inflation. B. For purposes of this Section, tips earned by employees within a work shift or day of work may be counted towards the City’s minimum wage for that work shift or day of work. However, this Section does not authorize an employer to pay AGENDA ITEM #1. b) ORDINANCE NO. _______ 2 employees an amount less than would otherwise be required by Chapter 49.46 RCW or other applicable law. 5-28-2 EXCEPTIONS: A. Small employers are exempt from the requirements of RMC 5-28-1. B. Medium employers are permitted to pay two dollars $2 less per hour than required by RMC 5-28-1 within the 2025 calendar year and one dollar ($1) less per hour than required by RMC 5-28-1 within the 2026 calendar year. C. Employees who are exempt or excepted from payment of the regular statewide minimum wage established by RCW 49.46.020 are exempt from the wage requirements of RMC 5-28-1. 5-28-3 DEFINITIONS: For the purposes of this chapter, the below terms shall have the following meanings: A. “City” means the City of Renton. B. “Employee” is defined as set forth in RCW 49.46.010, but is limited to only apply to those employees who have reached eighteen years of age. C. “Employer” is defined as set forth in RCW 49.46.010. D. “Hours worked within the City” is to be interpreted according to its ordinary meaning, including all hours worked within the geographic boundaries of the City, excluding time spent in the City for the purpose of traveling through the City from a point of origin outside the City to a destination outside the City, with AGENDA ITEM #1. b) ORDINANCE NO. _______ 3 no employment-related or commercial stops in the City except for refueling or the employee’s personal meals or errands. E. “Small Employer” is defined to include any employer who employs 50 or less employees worldwide. F. “Medium Employer” is defined to include any employer who employs between 51 and 499 employees worldwide. G. “Tips” means a verifiable sum to be presented by a customer as a gift or gratuity in recognition of some service performed for the customer by the employee receiving the tip. H. “Wage” is defined as set forth in RCW 49.46.010. 5-28-4 ENFORCEMENT: Enforcement of violations of the minimum wage required by RMC 5-28-1 shall be pursuant to all applicable state laws providing the enforcement of wages including, but not limited to, provisions for penalties, attorneys’ fees, and interest. 5-28-5 FUTURE LAW CHANGES: A. The City minimum wage adopted by RMC 5-28-1 shall be based upon the minimum wage formula, including annual adjustments, adopted within RCW 49.46.020 as it exists as of July 1, 2024. If amendments are made to RCW 49.46.020 that change the state minimum wage, the City’s Finance Department shall calculate and update the wage annually as though the state law had not changed. B. The City Council is authorized to amend or recodify this Chapter, without voter approval, to increase employee protections, add enforcement authority and/or reporting AGENDA ITEM #1. b) ORDINANCE NO. _______ 4 requirements, expand coverage to additional employees, clarify ambiguities, avoid conflict with state or federal laws, or add exemptions for provisions found to be unduly burdensome on employers. Any other amendments that result in a decrease in the minimum wage for non-exempted employees require voter approval. 5-28-6 RULEMAKING: The Administrator may adopt rules or procedures to determine applicability of exemptions, and otherwise implement, interpret, or enforce this Chapter. SECTION II. Upon approval of the City Attorney, the City Clerk is authorized to direct the codifier to make necessary corrections to this ordinance, including the corrections of scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering and references. The City Clerk is further authorized to direct the codifier to update any chapter, section, or subsection titles in the Renton Municipal Code affected by this ordinance. SECTION III. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. SECTION IV. This ordinance shall be in full force upon King County’s certification of election results with passage through a majority vote of Renton voters. Date of Publication: 24BMO001 AGENDA ITEM #1. b)