Amending the Pittsburgh Code, Title I--Administrative, Chapter 161--Contracts, adding section 161.33--Pittsburgh Living Wage, requiring employers who receive city contracts and/or city assistance to pay employees a minimum living wage, creating the City Assistance Advisory Committee, providing for enforcement, due process, and penalties for violations.
Whereas, the City of Pittsburgh provides grants, loans, tax incentives, contracts and other forms of taxpayer assistance, such as tax increment financing, to non-public entities that result in the creation, or maintenance of a wide variety of employment opportunities; and
Whereas, the City of Pittsburgh has limited taxpayer resources to expand; and
Whereas, the use of taxpayer dollars to promote the retention and creation of jobs will increase consumer income, decrease levels of poverty, invigorate neighborhood businesses and reduce the need for taxpayer-funded social programs in other areas; and
Whereas, the City of Pittsburgh’s payment of prevailing wage rates for City public works projects has been tremendously beneficial for Pittsburgh workers and their families, Pittsburgh neighborhoods, and the area economy;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PITTSBURGH:
That the City Code of Pittsburgh is hereby amended by adding a Section 161.33, Title I--Administrative, Chapter 161--Contracts, adding Section 161.33--Pittsburgh Living Wage, as follows:
Section 1. Title and Purpose
(a) Pittsburgh Living Wage Ordinance--This Chapter shall be known as the "Pittsburgh Living Wage Ordinance."
(b) The purpose of this Ordinance is to assure that employees of the City contractors, subcontractors and beneficiaries of tax, loan, grant and subsidy assistance or abatements provided by the City earn an hourly wage that is sufficient for a family four to live at or above the federal poverty level. This Ordinance is also designed to maximize access for low and moderate income Pittsburgh residents to the jobs that are created, maintained, or subsidized through City assistance.
Section 2. Definitions
For the purpose of this Ordinance, the following terms are defined as follows:
(a) "Applicable Department"--Office of the Controller of the City of Pittsburgh
(b) "Assistance"--shall include:
(1) any grant, loan, tax incentive, bond financing, subsidy, or other form of assistance valued annually at least $100,000 that a for-profit employer of at least 25 employees or any non-profit employer of at least 100 employees has realized within any 12 month period, by or through the authority or approval of the City of Pittsburgh, including, but not limited to, 121A tax agreements, industrial development bonds, Community Development Block Grant (CDBG) loans and Enterprise Zone designations awarded after the effective date of this chapter;
(2) any contracts or subcontracts with the City of Pittsburgh whose aggregate value for the previous twelve months is equal to or greater than $100,000 that is made with
(a) a for-profit employer of at least 25 employees, or
(b) a non-profit employer of at least 100 employees
to provide goods and services, awarded, renegotiated or renewed after the effective date of this chapter;
(3) any contractor or subcontractor of a Beneficiary, provided that the contract is awarded, renegotiated, or renewed after the effective date of this Chapter provided further that the annual value of such contract or subcontract exceeds $25,000 and be awarded to a for-profit employer of more than 25 employees or a non-profit employer of more than 100 employees;
(4) any leaseholder or renter of a Beneficiary, provided that the lease or rental agreement was signed or reached after the effective date of this Chapter provided further that the leaseholder or renter be a for-profit employer of at least 25 employees or a non-profit employer of at least 100 employees and occupy at least 25 percent of the gross square footage of the project.
(c) "Beneficiary" means any person that is a recipient of "Assistance".
(d) "City Assistance Advisory Committee" has the meaning stated in Section 6.
(e) "Covered Employer" means a Beneficiary of or an applicant for Assistance that has not been granted an exception from this Ordinance.
(f) "Covered Employee" means a person employed by a "Covered Employer" on a project receiving Assistance who is not employed in public construction work that is subject to the provisions of state law pertaining to wage rates for public works.
(g) "Living Wage" is defined in Section 3.
(h) "Person" means one or more of the following or their agents, employees, servants, representatives, and legal representatives: individuals, corporations, partnerships, joint ventures, associations, labor organizations, educational institutions, mutual companies, joint stock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, receivers, fiduciaries, and all other entities recognized at law by this commonwealth.
Section 3. Living Wage
(a) Applicability.--Covered Employers shall pay no less than the Living Wage to their employees.
(b) Amount of Wage.--The Living Wage shall be calculated on an hourly basis and shall be not less than $7.71 from July 1, 1997 subject to adjustment. The Living Wage shall be upwardly adjusted each year no later than March first either (1) to the sum equal to the United States poverty income guidelines for a family of four based on and hourly paid for forty hours of work, fifty weeks a year, or (2) in proportion to the increase at the immediately proceeding December 31 over the year earlier level of the Annual Average Consumer Price Index for All Urban Consumers (CPI) Pittsburgh SMSA as published by the Bureau of Labor Statistics, United States Department of Labor applied to $7.71, whichever produces the highest level.
(c) Assistance to Employees Paying Less Than Living Wage Barred.--Prior to entering in any agreement between the City and an employee for any for of Assistance, a Covered Employer must certify for the Applicable Department that it is paying each of its Covered Employees no less than the Living Wage.
(d) Maintenance of Payroll Records.--Each Covered Employer shall maintain payrolls for all Covered Employees and basic records related thereto and shall preserve them for a period of three years. The records shall contain the name and address of each employee, the job title and classification, the number of hours worked each day, the gross wages, deductions made, actual wages paid, a copy of the social security returns, and evidence of payment thereof, a record of fringe benefit payments including contributions to approved plans, funds or programs and/or additional cash payments, and such other data as may be required by the Applicable Department from time to time.
(e) Living Wage Compliance, Enforcement, and Penalties.--It shall be the responsibility of the Applicable Department to examine promptly all payrolls for compliance.
(f) Applicable Department Duties.--This Applicable Department shall cause investigations to be made as may be necessary to determine whether there has been compliance with the provisions of this heading.
(g) Covered Employer to Cooperate.--The Covered Employer shall permit City representatives to observe work being performed upon the work site, to interview employees and to examine the books and records relating to the payrolls being investigated to determine the correctness of classifications and any payment of wages.
Section 4. Community Jobs.
(a) Definitions. For the purposes of this section, all the definitions under Section 2 shall carry the same meaning. In addition, the term:
(1) "One Stop Career Center"--those facilities established by the federal and state government, within the City of Pittsburgh to provide employment referral and job readiness services to individuals seeking work.
(2) "Community Based Hiring Hall"--means any organized job registry and referral service operated by a non-profit organization or union provided that the non-profit organizations has the following:
(i) an established community membership base and a record of conducting outreach in low and moderate income Pittsburgh communities;
(ii) a computerized skill bank were individuals may register for employment and training opportunities;
(iii) an established process whereby an employer can post job openings, and where referrals can begin within 48 hours of such posting
(iv) a governing board comprised of a majority of low- and moderate-income Pittsburgh residents; or the majority of services provided by the entity are furnished to low- and moderate-income Pittsburgh residents
(v) a proven track record of non-discriminatory job placement with respect to race, color, religion, ancestry, national origin, place of birth, sex, sexual orientation, familial status, age, nonjob related handicap or disability in employment;
(vi) is certified as meeting requirements (1) through (v) by the Department of Personnel and Civil Service.
(3) "Employment Agreement"--means a written agreement between the City of Pittsburgh and any proposed or current Beneficiary that is negotiated before and assistance is approved. The Employment Agreement shall be limited to non-construction work and shall contain the following elements:
(i) one or more signed First Source Hiring Agreements between the Beneficiary and one or more Pittsburgh One Stop Career Centers or certified Community Based Hiring Halls;
(ii) a signed affidavit from the President or Chief Operating Officer of the Covered Employer certifying whether one of the approved One Stop Career Centers or Community-Based Hiring Halls was interested in a First Souse Hiring Agreement;
(4) "First Source Hiring Agreement"--means a signed agreement between a proposed or current Beneficiary and a One Stop Career Center and/or Community Based Hiring Hall. The First Source Agreement shall stipulate that (1) the Beneficiary shall employ qualified individuals referred by One Stop Career Centers and/or Community-Based Hiring Halls; (2) that One Stop Career Centers and Community-Based Hiring Halls shall maintain a database of job opportunities subject to the Pittsburgh Living Wage Ordinance and shall provide information on such job opportunities to all Pittsburgh residents who receive services and that the Covered Employer commits to non-discrimination on the basis of race, color, religion, ancestry, national origin, place of birth, sex, sexual orientation, familial status, age, nonjob related handicap or disability in employment.
(5) "Low and moderate income"--means persons with incomes that are less than 80 percent of median income for the Pittsburgh Standard Metropolitan Statistical Area.
(b) Construction, Prevailing Wage and Union Jobs Exemption--Nothing in this section shall apply to jobs in public construction work that is subject to state law pertaining to wage rates or covered by prevailing wage agreements or collective bargaining agreements.
(c) Protection of Union Jobs--In no instance shall a Covered Employer employ individuals where such employment results in the displacement of employees covered by a collective bargaining agreement.
(d) Employment Agreement for Assistance--At least 10 working days in advance of the City’s decision on an award of Assistance, any person seeking an award of Assistance shall submit to the Office of the City Controller a confidential notice packet for their application for assistance which shall include the following:
(1) the number of the Assistance program and project as well as the names, addresses, and phone number of each project;
(2) the name, address, and phone number of a local contact person for the Covered Employee;
(3) a workforce profile of the prospective Beneficiary, including, but not limited to, number of employees who are employed within the City of Pittsburgh;
(4) a written summary of past efforts to hire low and moderate-income residents of Pittsburgh;
(5) a statement of projected employment needs under the anticipated award;
(6) a written commitment to pay all Covered Employees a living wage, unless otherwise provided;
(7) a statement of the projected wage levels for all Covered Employees in each of the five subsequent years;
(8) a written plan for the training of low and moderate income Pittsburgh residents for skilled positions, including signed agreements from any third parties to be responsible for training;
(9) numerical goals for filling new hire positions with low- and moderate-income Pittsburgh residents;
(10) the total cost to the City of the Assistance, including both expenditures by the city, as well as revenue not collected as a result of the Assistance;
(11) the net increase or decrease in jobs by job classification that will result from the Assistance
(e) Reports Required of Covered Employers--Covered Employers shall provide quarterly reports to the City of their employment activities, including the race, gender, zip code and wage rate of Covered Employees hired and laid off and the result of the Covered Employer’s use of referrals from One Stop Career Centers and Community-Based Hiring Halls, including the number referred and the number of referrals hired;
(f) Complaint Procedures--A complaint of non-compliance with this Chapter may be filed with the Applicable Department, which shall provide a copy of the complaint to the City Assistance Advisory Committee and to each Beneficiary involved within five business days.
(g) Hearings--The City Assistance Advisory Committee shall determine the need for a public hearing on the complaint. If a hearing is deemed necessary, it shall be scheduled and conducted by the Applicable Department, with 30 days notice of the hearing provided to the City Solicitor, the Covered Employer, the complaining party or parties, the One Stop Career Center or Centers or Community Based Hiring Halls with whom the Covered Employer has a First Source Hiring Agreement and the City Assistance Advisory Committee.
(h) Review and Investigations--The Applicable Department shall review and investigate the charges, including any finding from the hearing. It shall make a decision of compliance or noncompliance.
(I) Notice of Corrective Action--Upon finding by the Applicable Department of non-compliance, the Corporation Counsel shall issue a corrective action citation specifying all areas of non-compliance and deadlines for resolutions of the identified violations.
(j) Failure to Comply with Notice--If a Covered Employer has failed to comply for more than 90 days after the corrective action citation is issued, the Applicable Department shall schedule a special compliance hearing within 20 business days after the initial 90 days have elapsed. Ten days notice of this hearing must be sent to the same parties as were put on notice of the first hearing.
(k) Failure to Remedy--A finding of failure to remedy by the Hearing Officer shall result in a recommendation to the City Assistance Advisory Committee for the imposition of sanctions. This recommendation may include any or all of the following sanctions which the Committee may impose:
(1) fines up to $500 per day for each violation;
(2) the filing of a complaint with the pertinent federal agency;
(3) termination of on-going assistance;
(4) temporary or permanent department or denial of any future opportunities for said Beneficiary to receive City Assistance
Section 5. Citizen Participation
(a) Composition. The City Assistance Advisory Committee shall be comprised of seven members:
(1) Two members of the Committee shall be appointed by City Council
(2) Five appointees by the Mayor of Pittsburgh, including one recommended from Community-Based organizations operating solely within the City of Pittsburgh; one recommended from the Greater Pittsburgh Chamber of Commerce; one recommended by the Allegheny County Labor Council, and one from a neighborhood-based Chamber of Commerce or Merchants Association.
(b) Members of this committee shall serve a three-year term.
(c) Purpose--The purpose of the City Assistance Advisory Committee shall be to review the effectiveness of this Ordinance at creating and retaining living wage jobs in Pittsburgh, and in securing access to living wage jobs for low- and moderate-income Pittsburghers.
(d) Meetings--The City Assistance Advisory Committee shall meet quarterly and in special session as required. All meetings of the City Assistance Advisory Committee shall be open to the public. All meetings will allow for public testimony on the uses of the City Assistance generally, and on specific instances of Assistance or proposed assistance as received or sought by individual enterprises.
Section 6. City Assistance Reports
(a) Each applicable Department shall file a City Assistance Report with the City Controller, and submit said report to the City Council, the Corporation Counsel, City Assistance Advisory Committee and each One Stop Career Center within ten (10) working days following each calendar year.
(b) The report shall include, for each Assistance package or contract approved during the proceeding quarter:
(1) the name of the Assistance program and project as well as the names, addresses and home numbers of each project;
(2) the name, address, and phone number of a local contact person for the Covered Employer;
(3) the total cost to the City of Assistance provided to each Beneficiary, including both expenditures by the City as well as revenue not collected as a result of the Assistance;
(4) the net increases or decreases in jobs within the City of Pittsburgh by job classification.
Section 7. Exceptions.
(a) The City Controller may request that City Council grant a partial or whole exception to the requirements of this Chapter.
(b) Grounds for Granting Exceptions:
(1) General Exception. Exceptions may be granted where application of this Chapter to a particular form of Assistance is found by the City Controller to violate a specific state or federal statutory, regulatory or constitutional provision or provisions and City Council approves the exception on that basis.
(2) Youth Employment Exception. A beneficiary who is an organization who regularly employs individuals under the age of 21 in a summer youth program, school-to-work program or other related seasonal or part-time work. The exception shall only apply to these employees.
(3) Hardship Exception. The City Assistance Advisory Committee shall monitor, and as necessary, recommend, individual or group exceptions necessary in cases in which compliance with this chapter would cause an economic hardship. Such exceptions shall be subject to City Council and Mayoral approval.
(c) Procedures--A City Controller exception request shall be submitted directly to the City Assistance Advisory Committee.
(d) Contents--All general exceptions requests shall include the following:
(1) the nature of the Assistance to which this Chapter applies;
(2) the specific or official name of the Assistance and Assistance Program, the statutory or regulatory authority for the granting of the Assistance, and a copy of that authority;
(3) the conflicting statutory, regulatory or constitutional provision or provisions that makes compliance with this Chapter unlawful and a copy of each such provision;
(4) a factual explication and legal analysis of how compliance with this Chapter would violate the cited provision or provisions and the legal consequences that would attach if this violation were to occur;
(e) All hardship exception requests shall include the following:
(1) the nature of the Assistance to which this Chapter applies;
(2) the specific or official name of the Assistance and Assistance Program, the statutory or regulatory authority for the granting of the Assistance, a copy of the authority;
(3) the lower wage paid by the Beneficiary; and
(4) a detailed explanation of how the payment of a living wage will cause an economic hardship including supporting financial statements,
(f) Enforcement Powers--If necessary for the enforcement of this Chapter, the City Controller/Solicitor may issue subpoenas, compile the attendance and testimony of witnesses and production of books, papers, records and documents relating to payroll records necessary for hearing, investigations, and proceedings. In case of disobedience of a subpoena, the City may apply to a court of appropriate jurisdiction for an order requiring the attendance and testimony of witnesses and the production of books, papers, records and documents. Said court, in the case of the refusal to obey any such subpoena, after notice to the person subpoenaed, and upon finding that the attendance or testimony of such witnesses of the production of such books, papers, records and documents, as the case may be, is relevant or necessary for such hearings, investigation or proceedings, may issue and order requiring the attendance or testimony of such witnesses or the production of such documents and any violation of the court’s order may be punishable by the court as contempt thereof.
(g) Grievance Procedures and Non-Discrimination--An employee who believes that he or she is a Covered Employee or are applicant for a position to be filled by a Covered Employee and that his or her employer is not complying with requirements of this Chapter applicable to the employee has the right to file a complaint with alleged violations may be made at any time and shall be investigated promptly by the Applicable Department. Statements, written or oral, made by an employee, shall be treated as confidential and shall not be disclosed to the Covered Employee without the consent of the employees
(h) Investigations--The applicable Department shall investigate the complaint, and may in conjunction with the City Controller/Solicitor, and in accordance with the powers herein granted, require the production by the employer of such evidence as required, and shall order, after notice and a hearing, and if a violation is found, the employer to pay full restitution to the employee, and such other penalties as are authorized herein.
(i) Retaliation and Discrimination Barred--A Covered Employer shall not discharge, reduce the compensation or otherwise discriminate against any employee for making a complaint to the City, otherwise asserting his or her rights under this Chapter, participating in any of its proceedings or using any civil remedies to enforce his or her rights under the Chapter. The City shall investigate allegations of retaliation or discrimination and shall, if found to be true, after notice and a hearing order appropriate relief, including restitution, and reinstatement of a discharged employee with back pay to the date of the violation.
(j) Remedies--In the event that the City shall determine, after notice and hearing, that any Covered Employee has failed to pay the Living Wage rate or has otherwise violated the provisions of this Chapter, the city may order any or all of the following penalties and relief:
(1) Fines in the sum of $500 for each week for each employee found to have not been paid in accordance with this chapter;
(2) Wage restitution for each affected employee;
(3) Suspension of ongoing contracts and subcontract payments;
(4) Ineligibility for future City Assistance for three years or until all penalties and restitution have been paid in full, whichever is longer. In addition, all Covered Employers having principal officers who were principal officers of a barred beneficiary shall be ineligible under this section.
(5) This chapter shall not be construed to limit an employees’ right to bring common law cause of action for wrongful termination.
(6) The court shall allow injunctive relief in ordering the predecessor Contractor to produce the list of covered employees required by this Chapter.
(k) Remedies in this section shall also apply to the party or parties aiding and abetting in any violation of this chapter.
(l) Remedies Herein Non-Exclusive--No remedy set forth in this Chapter is intended to be exclusive or a prerequisite for asserting a claim for relief to enforce the right granted under this Chapter in a court of law.
Section 9. Severability
In the event any provision of this Ordinance shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof.
Section 10. Effective Date
This Ordinance shall be effective on July 1, 1998
Section 11. Sunshine Provision
Unless otherwise extended, this Ordinance shall expire on June, 30, 2001.
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