SUBSTITUTE FOR ORDINANCE NO. 150217, AS AMENDED
Enacting a new Article IV, Chapter 38, Code of
Ordinances, entitled “Minimum Wage” to establish a municipal minimum wage of
$8.50 per hour on August 24, 2015, to increase that municipal minimum wage to
$13.00 per hour by January 1, 2020, to be increased or decreased by the cost of
living January 1, 2021 and each year thereafter.
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. ENACTMENT OF THE MUNICIPAL
MINIMUM WAGE. That a new Article IV, Chapter 38, Code of Ordinances,
entitled "Minimum Wage," is enacted to read as follows:
ARTICLE IV. CITY MINIMUM WAGE
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
(b) “Director” means the Director of Human Relations;
(c) “Employ” means to suffer or permit to work;
(d) “Employee” means any individual employed by an
Employer who performs at least 20 hours of work within a calendar year for an
Employer whether on a part-time, full-time or temporary basis, and shall
include contingent and contracted workers and individuals working through a
temporary service, staffing or employment agency or similar entity. However,
the term “Employee” shall not include:
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;
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;
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;
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;
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
Interns working for a business for
academic credit in connection with a course of study at an accredited school,
college or university;
Persons working for a business in
connection with a court-ordered community service program; or
Persons 17 years of age or
(e) "Employer" means any individual,
partnership, association, corporation, business trust, or any business
organization, person or group of persons engaged in providing, selling,
purchasing or investing in goods or services within the corporate limits of
Kansas City, Missouri, which has a total of more than 15 employees regardless
of age and regardless of location, and shall include the City of Kansas City
and its departments. Employer does not include any other governmental entity
which includes, for purposes of this Ordinance, any other unit of local
government, the state government, and the government of the United States;
(f) "Minimum Wage" means the minimum hourly rate
of compensation that an employee shall be paid;
(g) "Tips" means a verifiable sum presented by a
customer as a gift or gratuity in recognition of some service performed for the
customer by the employee receiving the tip; and
(h) "Tipped Employee" means an employee who
customarily and regularly receives more than thirty dollars ($30.00) a month in
Sec. 38-202. Minimum Wage Payment Requirements.
(a) Minimum Wage established. The
Minimum Wage rate for employees shall be:
January 1, 2018
January 1, 2019
January 1, 2020
(b) Annual adjustments. Beginning
January 1, 2021 and on January 1 of successive years the Minimum Wage shall be
adjusted based upon the increase or decrease in the cost of living. On
September 30, 2020 and on each September 30 of each successive year the City of
Kansas City Human Relations Department shall measure the increase or decrease
in the cost of living by the percentage increase or decrease as of the
preceding July over the level as of July of the immediately preceding year of
the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) or
a successor index as published by the U.S. Department of Labor or its successor
agency, with the amount of the Minimum Wage increase or decrease rounded to the
nearest five cents. The City of Kansas City, Missouri shall post on its website
a bulletin announcing the adjusted Minimum Wage rate for the upcoming calendar
year no later than ninety (90) days prior to each adjustment.
(c) Tipped Employee Minimum Wage. A
Tipped Employee shall be paid a minimum cash wage directly by an Employer of no
less than fifty percent (50%) of the Minimum Wage established by the State of
Missouri. An Employer may consider Tips as part of wages of a Tipped Employee,
but the Tips combined with the minimum cash wage paid directly by the Employer
shall not equal less than the Minimum Wage as provided by subsection (a) of
this Section. In the event a Tipped Employee earns insufficient Tips combined
with this minimum cash wage to receive a wage at least equal to the Minimum
Wage established by this Article, the Employer shall pay the Employee the
difference to ensure the Employee receives a wage equal to the Minimum Wage
established by this Article. All Tips received by Tipped Employees are the sole
property of the Tipped Employee and shall be retained by the Tipped Employee,
except that nothing in this Section shall prohibit a valid tip pool under which
Tips are pooled and distributed among all Tipped Employees, provided that only
the amount actually retained by each Employee shall be considered part of that
(d) Information posted. The City of
Kansas City, Missouri shall post the Minimum Wage rates established by this
Ordinance on its website after this Ordinance becomes effective and at least
ninety (90) days prior to each adjustment.
(e) Adoption of Missouri or federal rates.
The minimum wage established by this Article shall not apply if it is equal to
or less than the minimum wage established by Missouri or federal law.
Sec. 38-203. Prohibitions.
(a) Retaliation. 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 Article or assisting another person
to do so.
(b) Failure to pay. It shall be unlawful for any Employer or Employer’s agent or
representative to pay an Employee less than the minimum wage required by this
Sec. 38-204. Remedies and Penalties.
(a) The Human Relations Department may promulgate rules
and regulations regarding the interpretation, application and enforcement of
this Ordinance. The Human Relations Department is authorized to receive any
complaint regarding a possible or suspected violation of this Ordinance and
further authorized to take appropriate steps to enforce this Ordinance,
including, regardless of whether there is a complaint, investigating any
possible or suspected violation of this Ordinance.
(b) Before submitting to the City Prosecutor complaints of
violations, the Director shall provide for a hearing conducted by a hearing
officer uninvolved with the investigation of the matter for a determination of
whether or not this Article’s requirements have been met by an Employer.
Failure of the Employer to participate in the hearing waives the requirement
that a hearing be conducted before complaints are forwarded to the City
(c) An Employer violating this Article shall be subject to
a fine of up to $1,000.00 per violation. Any Employer violating any of the
requirements of this Article shall be guilty of a separate offense for each
week or portion thereof and for each worker or person as to which any such
violation has occurred.
(d) The remedies provided in this Article are not
exclusive, and nothing in this Article shall preclude any person from seeking
any other remedies, penalties, or relief provided by law.
Sec. 38-205. Severability.
The requirements and provisions of this article
are severable. In the event that any requirement, provision, part, subpart or
clause of this article, 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
article be enforced to the maximum extent possible consistent with the
objective of ensuring a Minimum Wage.
Sec. 38-206. Notice Posting.
As of April 1, 2016, an Employer shall post and
display in a prominent location a notice that the business is in compliance
with the provisions of this article and shall include the text of sections 38-202,
38-203 and 38-204 of this article.
Sec. 38-207. Procedure.
A complaint form for use in reporting
violations of this Ordinance shall be available on the City webpage for use in
Approved as to form and