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Legislation #: 170391 Introduction Date: 5/18/2017
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER REED
Title: Repealing Second Committee Substitute for Ordinance No. 170046 that placed a minimum wage question proposed by a committee of petitioners before the voters and enacting a new ordinance calling an election on August 8, 2017, for the purpose of submitting to the voters of Kansas City a question presented by a committee of petitioners through an initiative petition enacting a municipal minimum wage ordinance to phase in a minimum wage of $15.00 per hour; enacting the minimum wage ordinance contingent upon voter approval; directing the City Clerk to notify the responsible election authorities on or before May 30, 2017; and recognizing this ordinance as having an accelerated effective date because it calls an election.

Legislation History
DateMinutesDescription
5/18/2017 Filed by the Clerk's office
5/18/2017 Councilmember Reed (Second by Lucas) Move to Advance
5/18/2017 Passed

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ORDINANCE NO. 170391

 

Repealing Second Committee Substitute for Ordinance No. 170046 that placed a minimum wage question proposed by a committee of petitioners before the voters and enacting a new ordinance calling an election on August 8, 2017, for the purpose of submitting to the voters of Kansas City a question presented by a committee of petitioners through an initiative petition enacting a municipal minimum wage ordinance to phase in a minimum wage of $15.00 per hour; enacting the minimum wage ordinance contingent upon voter approval; directing the City Clerk to notify the responsible election authorities on or before May 30, 2017; and recognizing this ordinance as having an accelerated effective date because it calls an election.

 

WHEREAS, a committee of petitioners submitted an initiative petition seeking the adoption of a municipal minimum wage ordinance; and

 

WHEREAS, sufficient signatures were collected to engage the City Charter initiative process; and

 

WHEREAS, the City Council enacted an alternative ordinance that did not meet the approval of the committee of petitioners; and

 

WHEREAS, the committee of petitioners submitted a demand, authorized by the City Charter, that its original proposed ordinance be placed before the voters; and

  

WHEREAS, on January 17, 2017, the Missouri Supreme Court ordered the City to take all steps necessary to have Committee’s proposed ordinance placed before City voters in accordance with the City Charter and this order became final on February 2, 2017; and

 

WHEREAS, on February 23, 2017, the City Council passed Second Committee Substitute for Ordinance No. 170046 that called an election on August 8, 2017, for the purpose of submitting to the voters a question presented by a committee of petitioners that would enact a minimum wage ordinance to phase in a minimum wage of $15.00 per hour; and

 

WHEREAS, the committee of petitioners has requested that the effective date contained in their proposed ordinance be changed from September 1, 2017 to August 24, 2017; and

 

WHEREAS, the City Council now desires to repeal Second Committee Substitute for Ordinance No. 170046 and pass a new ordinance calling an election on August 8, 2017, for the purpose of submitting to the voters a question presented by a committee of petitioners that would enact a minimum wage ordinance to phase in a minimum wage of $15.00 per hour, NOW, THEREFORE,

 

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That Second Committee Substitute for Ordinance No. 170046 is hereby repealed. 

 

Section 2. ELECTION CALLED. That an election is called on August 8, 2017, for the purpose of submitting to the voters of Kansas City the question of raising the minimum wage applicable to employment within the limits of the City of Kansas City.

 

Section 3. NOTICE TO ELECTION AUTHORITIES BY CITY CLERK. That following passage of this ordinance the City Clerk shall deliver certified copies of this ordinance and notice of election to the Clerk of Cass County, Board of Election Commissioners of Clay County, Board of Election Commissioners of Kansas City, and Board of Election Commissioners of Platte County, on or before May 30, 2017, which shall be the authority of each election authority of the City to submit the questions to the electors of Kansas City and to give public notice as provided by law.

 

Section 4. NOTICE OF ELECTION. The notice of election shall read as follows:

 

NOTICE OF ELECTION
KANSAS CITY, MISSOURI

 

Notice is hereby given that the City of Kansas City has called a special election to be held on Tuesday, August 8, 2017, between the hours of 6:00 a.m. and 7:00 p.m., at which election all qualified voters residing within Kansas City, Missouri will be given the opportunity to vote.

 

The official ballot will be in substantially the following form:

 

OFFICIAL BALLOT

CITY OF KANSAS CITY

 

SPECIAL ELECTION, August 8, 2017

 

QUESTION NO. __

(Initiative Petition)

(City Minimum Wage)

 

Shall the City of Kansas City enact now a municipal minimum wage of $10.00 per hour on August 24 , 2017, and increased annually by $1.25 per hour beginning September 1, 2019, to reach $15.00 per hour in 2022?

 

_____ YES

 

_____ NO

 

(Instructions to voters will be supplied by the election authorities.)

 

A full and complete copy of this ordinance (as it may be amended) submitting the above questions to the electorate is on file in the office of the City Clerk of Kansas City, Missouri where the same is open for inspection and copying.

 

The polling places for the election will be (INSERT LIST OF POLLING PLACES IN LAST PUBLICATION ONLY)

 

--------------------------------------------------------

 

I hereby certify that the foregoing is the legal notice to be published pursuant to Section 115.127, RSMo, as amended.

 

Given under my hand and the official seal of the City of Kansas City, Missouri, this _____ day of February, 2017.

 

(SEAL)

________________________________

MARILYN SANDERS

City Clerk of Kansas City, Missouri

 

Before me, a notary public, personally appeared Marilyn Sanders, to me known to be the City Clerk of Kansas City, Missouri, and the person who acknowledged to me that she executed the same for the purposes therein stated.

 

 

________________________________

Notary Public

 

My Commission Expires: ______________________________

 

Section 5. BALLOT TITLE. The ballot title for this measure shall be:

 

QUESTION NO. ___

(Initiative Petition)

(City Minimum Wage)

 

Shall the City of Kansas City enact now a municipal minimum wage of $10.00 per hour on August 24 , 2017, and increased annually by $1.25 per hour beginning September 1, 2019, to reach $15.00 per hour in 2022?

 

_____ YES

 

_____ NO

 

Section 6. ENACTMENT OF THE MUNICIPAL MINIMUM WAGE. That a new Article IV, Chapter 38, Code of Ordinances, entitled "Living Wage," is enacted, contingent upon approval of the voters at an election to be held on August 8, 2017, to read as follows:

 

ARTICLE IV. LIVING WAGE

 

Sec. 38-200. Authority.

 

This Ordinance is enacted pursuant to its general police powers and the authority to provide for the general health and welfare of its citizens as established by the Missouri Constitution, Article VI, Section 19(a), giving a charter city all powers which are consistent with the Missouri Constitution and that are not limited or denied by the City of Kansas City, Missouri Charter or by statute.

 

Sec. 38-201. Definitions.

 

(a) “Apprentice” means a person bound to serve another for a specified time in order to learn some art, trade, profession, or business;

 

(b) "Base wage" means the minimum hourly rate of compensation that an employee who customarily and regularly receives more than thirty dollars ($30.00) a month in tips shall be paid pursuant to this Ordinance;

 

(c) "Commission" means a payment based on a percentage of the value of sales or other business done;

 

(d) "Living wage" means the minimum hourly rate of compensation that an employee shall be paid; and

 

(e) "Tip" means a gratuity earned by an employee for providing good service.

 

Sec. 38-202. Applicability.

 

(a)    This Ordinance shall be effective within the corporate limits of the City of Kansas City, Missouri, established by Article 1, Section 101 of the Kansas City, Missouri Charter.

 

(b)   Employees of the City of Kansas City, Missouri shall be paid the living wage established by Section 38-204 of this Ordinance. However, the provisions of this subsection are expressly limited by and subject to collective bargaining agreements between the City of Kansas City, Missouri and any bargaining unit.

 

(c)    As of the effective date of this Ordinance, contracts entered into by the City of Kansas City, Missouri for services, including construction services, shall require the contractor to pay the living wage established by this Ordinance.

 

(d)   Businesses required by the City of Kansas City, Missouri to have a business license from the City of Kansas City, Missouri shall pay the living wage established by this Ordinance.

 

(e)    For purposes of identifying who shall be paid the living wage established by this Ordinance, all individuals employed in the corporate limits of the City of Kansas City, Missouri, whether on a part-time, full-time or temporary basis, shall be considered to be an employee for purposes of this Ordinance. Also considered an employee for purposes of this Ordinance are contingent or contracted workers, and persons working through a temporary service, staffing or employment agency or similar entity. However, the following shall not be considered employees entitled to the living wage established by this Ordinance:

 

(1) An individual employed by the United States, the State of Missouri or any political subdivision of the State other than by the City of Kansas City, Missouri;

 

(2) An individual engaged in the activities of an educational, charitable, religious or nonprofit organization where the employer-employee relationship does not, in fact, exist or where the services rendered to such organizations are on a voluntary basis;

 

(3) Apprentices in a registered apprentice program recognized by the State of Missouri or the Federal Bureau of Apprenticeship and Training, as well as any apprentice participating in an apprenticeship program providing significant instructional and practical experience and offered by the City of Kansas City, Missouri.

 

(4) Temporary employees of an educational, charitable or religious youth camp or retreat where room and board are provided to the employee, or if a day camp, where board only is provided. To qualify under this exemption the employer must hold a valid certificate issued annually by the Director of the Missouri Department of Labor pertaining to exemption of seasonal employees;

 

(5) Any employee that is the parent, spouse, child or other member of the employer's immediate family; for purposes of this subsection, the employer shall include the principal stockholder of a family corporation;

 

(6) Interns working for a business for academic credit in connection with a course of study at an accredited school, college or university; and

 

(7) Persons working for a business in connection with a court-ordered community service program.

 


Sec. 38-203. Findings.

 

(a)    The City Council finds that the public welfare, health, safety and prosperity of citizens of the City of Kansas City, Missouri requires that citizens be paid a living wage sufficient to ensure a decent and healthy life;

 

(b)   The City Council finds that establishing a mandatory minimum hourly wage will promote the public welfare, health, safety and prosperity by ensuring that citizens can better support and care for their families through their own efforts;

 

(c)    The City Council finds that when businesses do not pay adequate wages, the community bears the cost in the form of increased demand for taxpayer-funded social services;

 

(d)   The City Council finds that it is in the public interest to require that employers benefiting from the opportunity to do business in the City of Kansas City, Missouri pay employees a living wage that is adequate to meet the basic needs of living in the City of Kansas City, Missouri.

 

Sec. 38-204. Living Wage Payment Requirements.

 

(a)    Except as provided in subsection B, the living wage paid to an employee not excluded as set forth above, shall be ten dollars ($10.00) per hour, effective August 24 , 2017. Beginning September 1, 2019, the living wage shall be increased by $1.25 each year thereafter for the next four years. The City of Kansas City, Missouri shall post the living wage established by this Ordinance on its website after this Ordinance becomes effective and at least ninety (90) days prior to each adjustment of the living wage.

 

(b)   An employee who customarily and regularly receives more than thirty dollars ($30.00) a month in tips and/or commissions shall be paid at least a base wage equivalent to sixty percent of the living wage established by this Ordinance. Initially the base wage rate shall be six dollars ($6.00). That wage will increase simultaneously and proportionately with each living wage increase. The employer may consider tips and commissions as part of wages, but the tips and commissions combined with the employer's payment of wages to the employee shall not equal less than the living wage as provided in subsection A of this section. In the event an employee earns insufficient tips and/or commissions combined with the base wage to receive a wage at least equal to the living wage established by this Ordinance, the employer shall pay the employee the difference to ensure the employee receives a wage equal to the living wage established by this Ordinance. All tips received by such employee shall be retained by the employee, except that nothing in this section shall prohibit the pooling of tips among employees. Where employees practice tip pooling or splitting (as where staff give a portion of their tips to bus persons), only the amount actually retained by each employee shall be considered part of that employee's wages.

 


Sec. 38-205. Prohibition against Retaliation and Circumvention.

 

It shall be unlawful for any employer or employer's agent or representative to discharge, demote, deny promotion to or in any way discriminate against an employee in the terms or conditions of employment in retaliation for the person asserting a claim or right pursuant to this Ordinance or assisting another person to do so.

 

Sec. 38-206. Remedies and Penalties.

 

(a)    A person violating this Ordinance shall be subject to a fine of $500. Any person violating any of the requirements of this Ordinance shall be guilty of a separate offense for each day or portion thereof and for each worker or person as to which any such violation has occurred.

 

(b)   The City, any individual aggrieved by a violation of this Ordinance, or any entity whose members have been aggrieved by a violation of this Ordinance, may bring a civil action in a court of competent jurisdiction to restrain, correct, abate or remedy any violation of this Ordinance and, upon prevailing, shall be entitled to such legal or equitable relief as may be appropriate to remedy the violation including, without limitation, reinstatement, the payment of any wages due, an additional amount as liquidated damages equal to twice the amount of any wages due, injunctive relief, and reasonable attorney's fees and costs.

 

(c)    The remedies provided in this Ordinance are not exclusive, and nothing in this Ordinance shall preclude any person from seeking any other remedies, penalties, or relief provided by law.

 

Sec. 38-207. Prospective Application.

 

Nothing in this Ordinance shall be deemed to nor shall be applied in such a manner so as to have a constitutionally prohibited effect as an ex post facto law or impairment of an existing contract within the meaning of the Missouri Constitution, Article 1, Section 13.

 

Sec. 38-208.  Severability.

 

The requirements and provisions of this Ordinance are severable. In the event that any requirement, provision, part, subpart or clause of this Ordinance, or the application thereof to any person or circumstance, is held by a court of competent jurisdiction to be invalid or unenforceable, it is the intent of the Council that the remainder of the Ordinance be enforced to the maximum extent possible consistent with the objective of ensuring a living wage.

 

Sec. 38-209. Notice Posting.

 

Any holder of a City of Kansas City, Missouri business license shall, as a condition of obtaining or holding a business license, post and display in a prominent location next to its business license a notice that the business is in compliance with the provisions of this Ordinance and shall include the text of Sections 38-202 and 38-204 of this Ordinance. Failure to comply with this Section shall be construed as a violation of this Ordinance and, in addition, shall be considered grounds for suspension, revocation, or termination of the business license.

 

Sec. 38-210. Procedure.

 

A complaint form for use in reporting violations of this Ordinance shall be available on the City webpage for use in reporting violations.

 

Sec. 38-211. Effective Date.

 

This Ordinance shall become effective August 24 , 2017, contingent upon voter approval at an election to be held on August 8, 2017.

 

Section 7.  ACCELERATED EFFECTIVE DATE RECOGNIZED. This ordinance, providing for the submission of a question to the people of Kansas City, Missouri, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(A) of the City Charter, and shall take effect in accordance with Section 503.

 

_____________________________________________________

 

Approved as to form:

 

__________________________

Sarah Baxter

Assistant City Attorney