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City of Oakland
Majority Approval Required
Pass: 77183 / 81.77% Yes votes ...... 17204 / 18.23% No votes
Index of all Measures
|Results as of Dec 28 11:38am, 100.00% of Precincts Reporting (275/275)|
|Information shown below: Summary | Fiscal Impact | Impartial Analysis | Arguments | Full Text|
Shall Oakland's Municipal Code Be Amended To: (1) Establish A Citywide Minimum Hourly Wage Of $12.25, To Be Increased Annually To Address Inflation; (2) Require Employers To Provide Employees Paid Sick Leave; (3) Require That Hotel, Restaurant And Banquet Facility Operators And Employers Pay Service Charges They Collect To Employees Providing Those Services; And (4) Provide Employees The Right To Bring An Action Against Employers To Enforce And Seek Remedies For Violation Of This Ordinance?
Ballot Title:The City Attorney has prepared the following title and summary of the chief purpose and points of the proposed measure: A Proposed Amendment to the Oakland Municipal Code Establishing a Minimum Wage, Requiring Payment for Accrued Sick Leave, and Requiring Payment of Service Charges to Hospitality Workers
This measure would establish a minimum wage in the City of Oakland of $12.25 per hour, beginning on March 2, 2015. The minimum wage rate would increase yearly on January 1st based on increases in the cost of living.
This measure would require that employers in Oakland provide paid sick leave to their employees beginning on March 2, 2015. Employees would accrue one hour of paid sick leave for every 30 hours they work. Employers may cap paid sick leave earned by an employee at 40 hours for employees of small businesses and 72 hours for employees of other employers. Small businesses are defined as employers who normally have fewer than ten workers. An employer may set a higher cap for paid sick leave or no cap at all. Employees may use paid sick leave for the employee's own illness or injury, or to care for certain family members who are ill or injured. Employees with no spouse or domestic partner may designate one person for whom the employee may use paid sick leave to provide care.
This measure would require that hospitality employers who collect service charges from customers pay all service charges to their hospitality workers. Hospitality employers are defined as employers who own, control, or operate any part of a hotel, restaurant or Banquet facility within Oakland.
This measure would provide for enforcement by the City or by an employee's lawsuit. This measure would prohibit discharging, reducing compensation or otherwise discriminating against any person who makes a complaint to the City, participates in any City proceedings, or files a lawsuit for violation of this measure. This measure would permit the City to consider an employer's record of noncompliance with this measure in determining whether to enter into City contracts with the employer or grant land use approvals or other permits to the employer.
This measure prohibits employers from funding increases in compensation required by the measure "by reducing any non-management employee's compensation or non-wage benefits. The measure also requires that employers retain records regarding pay rates, paid sick leave, and service charge collection and distribution, and that employers prominently post and provide notice to employees of their rights under the measure.
Barbara J. Parker, City Attorney
Financial ImpactThere are both direct and indirect costs of Measure FF that will impact the City. The total estimated cost to the City is at least $2.14 to $2.46 million. Direct costs include increased rates for two City positions that are currently earning below $12.25 per hour. There are approximately 334 employees in these classifications. The estimated direct cost to the City is $479,832 to $575,556.
TOTAL DIRECT COST INCREASE $479,832 to $575,556
Indirect costs include rate increases for indirectly impacted classifications, education and outreach costs, and enforcement costs. The estimated indirect cost to the City is at least $1.66 to $1.89 million. However, as shown in the table below, two potential, indirect costs are unknown and cannot be estimated at this time.
A Adjusting salaries requires a process between the City and Unions, thus, the actual impact is unknown
Additionally, the City may have to reduce its Workforce Training Programs and grant-funded, Senior Aide positions. For example, according to City staff, the Workforce Training Programs pay approximately $10 per hour. Paying $12.25 per hour could result in the City funding fewer positions. This analysis is based on the best data available at the time; however, actual results may vary from these estimates.
s/ COURTNEY A. RUBY, CPA, CFE City Auditor
Existing law does not require employers to provide paid sick leave to their employees. If approved, this measure would require employers in Oakland to provide paid sick leave to their employees at a minimum rate of one hour for every 30 hours worked. Employers could cap paid sick leave hours earned by an employee, although an employer could set a higher cap or no cap at all. Employees could use paid sick leave for their own illness or injury, or to care for certain specified family members or other designated persons who are ill or injured.
Existing law does not require hospitality employers (such as hotel, restaurants, or banquet facilities) to pay service charges that they collect to their employees. Service charges include charges billed to customers by hospitality employers for employee services, such as room service delivery charges or porterage (baggage carrying) charges, but do not include tips. If approved, this measure would require that hospitality employers in Oakland who collect service charges from customers pay those service charges to employees who provide the service.
The measure includes various enforcement provisions. Employees could bring a lawsuit against an employer if the employer fails to comply with the measure. The City also could establish a process for enforcement, although that is not required. The measure would allow the City, if permitted by law, to consider an employer's record of noncompliance in deciding whether to enter into a contract with the employer or grant it land use approvals or other permits to the employer, and would permit the City to impose conditions on such approvals to ensure future compliance. However, it is not certain under what circumstances the law would permit the City to consider an employer's record of noncompliance in granting or denying a land use approval or other entitlement to expand or operate in the City, or allow the City to impose conditions on such approvals to ensure future compliance.
This measure was placed on the ballot by a petition signed by the requisite number of voters. A "yes" vote for the measure will approve the provisions described above; a "no" vote will reject the provisions. A majority vote is required for passage.
Barbara J. Parker, City Attorney
League of Women Voters
East Bay Express
|Arguments For Measure FF||Arguments Against Measure FF|
|Measure FF is about fairness.
People who work hard should be able to make ends meet. Measure FF will give an estimated 48,000 low-wage workers a raise to $12.25 per hour. It will also allow workers to earn paid sick days and protect against wage theft.
This measure is fair to workers.
It is also fair to taxpayers. A mother of two who works full time for minimum wage should not be forced onto government assistance to make ends meet. This measure is fair to taxpayers because we will not be forced to subsidize businesses that pay a sub-standard wage.
It is fair to businesses. In cities throughout the region, when the minimum wage was raised, jobs were created and businesses grew. Raising the minimum wage will allow Oakland workers to earn an additional $120 million, which they will spend in our local economy.
"A citywide minimum wage can help make the economy more equitable without harming economic growth," Michael Reich, Director, UC Berkeley Institute for Research on Labor and Employment.
It is fair to customers. Measure FF will allow more than 50,000 workers to earn sick days, keeping our workforce and customers healthy.
The effort to gather signatures from more than 32,682 voters to put this measure on the ballot was led by the Lift Up Oakland coalition made up of: ACCE Action East Bay Alliance for a Sustainable Economy Restaurant Opportunities Center of the Bay SEIU Local 1021 SEIU United Long Term Care Workers United Food and Commercial Workers Local 5 UNITE HERE 2850
We believe that to lift up our community, we have to give low-wage workers a raise.
Please join us.
The Lift Up Oakland Coalition
s/ Gary F. Jimenez, The Lift Up Oakland Coalition
No arguments against Measure FF were submitted.
|Full Text of Measure FF|
|"Oakland Municipal Code Chapter 5.92. City Minimum Wage, Sick Leave, and Other Employment Standards
Sec. 5.92.010. DefinitionsAs used in this Chapter, the following capitalized terms shall have the following meanings:
"City" shall mean the City of Oakland.
"Employee" shall mean any person who:
a. In a particular week performs at least two (2) hours of work within the geographic boundaries of the City for an Employer; and
"Employer" shall mean any Person who directly or indirectly (including through the services of a temporary services or staffing agency or similar entity) employs or exercises control over the wages, hours or working conditions of any Employee.
"Paid Sick Leave" shall mean paid "sick leave" as defined in California Labor Code sec. 233(b)(4), except that the definition here extends beyond the Employee's own illness, injury, medical condition, need for medical diagnosis or treatment, or medical reason, to also encompass time taken off work by an Employee for the purpose of providing care or assistance to other persons specified below with an illness, injury, medical condition, or need for medical diagnosis or treatment.
"Minimum Wage" shall have the meaning set forth in Section 5.92.020 of this Chapter.
"Person" means an individual corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.
"Small Business" shall mean an Employer for which normally fewer than ten persons work for compensation during a given week, including persons employed outside the City. The City Council is authorized to adopt regulations further defining "small business" for businesses with fluctuating numbers of employees. In determining the number of persons performing work for an employer during a given week, all persons performing work for the same business enterprise for compensation on a full-time, part-time, or temporary basis shall be counted, including persons made available to work through the services of a temporary services or staffing agency or similar entity.
Sec. 5.92.020. Minimum Wage.
A. Employers shall pay Employees no less than the Minimum Wage for each hour worked within the geographic boundaries of the City.
B. Beginning on the 2nd of March, 2015, the Minimum Wage shall be an hourly rate of $12.25. To prevent inflation from eroding its value, beginning on the 1st of January 2016, and then each year thereafter on the 1st of January, the Minimum Wage shall increase by an amount corresponding to the prior calendar year's increase, if any, in the Consumer Price Index for urban wage earners and clerical workers for the San Francisco-Oakland-San Jose, CA metropolitan statistical area (or if such index is discontinued, then in the most similar successor index).
Sec. 5.92.030. Paid Sick Leave
A. Accrual of Paid Sick Leave.
1. Paid Sick Leave shall begin to accrue as of the 2nd of March, 2015. For Employees hired by an Employer after March 2, 2015, the Employee shall not be entitled to use Paid Sick Leave until after 90 calendar days of employment with the Employer.
B. Use of Paid Sick Leave.
1. An Employee may use Paid Sick Leave not only when he or she is ill or injured or for the purpose of the Employee's receiving medical care, treatment, or diagnosis, as specified more fully in California Labor Code sec. 233(b)(4), but also to aid or care for the following persons when they are ill or injured or receiving medical care, treatment, or diagnosis: Child; parent; legal guardian or ward; sibling; grandparent; grandchild; and spouse, registered domestic partner under any state or local law, or designated person. The Employee may use all or any percentage of his or her Paid Sick Leave to aid or care for the aforementioned persons. The aforementioned child, parent, sibling, grandparent, and grandchild relationships include not only biological relationships but also relationships resulting from adoption; step relationships; and foster care relationships. "Child" includes a child of a domestic partner and a child of a person standing in loco parentis. If the Employee has no spouse or registered domestic partner, the Employee may designate one person as to whom the Employee may use paid sick leave to aid or care for that person in lieu of a spouse or registered domestic partner. The opportunity to make such a designation shall be extended to the Employee no later than the date on which the Employee has worked 30 hours after Paid Sick Leave begins to accrue pursuant to this Chapter. There shall be a window of 10 work days for the Employee to make this designation. Thereafter, the opportunity to make such a designation, including the opportunity to change such a designation previously made, shall be extended to the Employee on an annual basis, with a window of 10 work days for the Employee to make the designation.
Sec. 5.92.040. Hospitality Service Charges
A. Definitions for this Section:
1. "Service Charge" means all separately-designated amounts collected by a Hospitality Employer from customers that are for service by Hospitality Workers, or are described in such a way that customers might reasonably believe that the amounts are for those services, including but not limited to those charges designated on receipts under the term "service charge," "delivery charge," or "porterage charge."
B. Hospitality Employers' Responsibilities
1. Service Charges shall not be retained by the Hospitality Employer but shall be paid over in their entirety to the Hospitality Worker(s) performing services for the customers from whom Service Charges are to be collected. No part of these charges may be paid to supervisors except for any portion of their work time spent on non-supervisory work serving these customers, and then at no higher rate of compensation than the average of what is paid other Hospitality Workers performing similar customer service. The Service Charges shall be distributed to the Hospitality Workers not later than the next payroll following the work or collection of the charge from the customer, whichever is later. Without limitation of the foregoing:
2. This section does not apply to any tip, gratuity, money, or part of any tip, gratuity, or money that has been paid or given to or left for a Hospitality Worker by customers over and above the actual amount due for services rendered or for goods, food, drink, or articles sold or served to the customer.
Sec. 5.92.050. Enforcement
A. Retaliation Barred
1. A Person shall not discharge, reduce the compensation of nor otherwise discriminate against any Person for making a complaint to the City, participating in any of its proceedings, using any civil remedies to enforce his or her rights, or otherwise asserting his or her rights under this Chapter. Within 120 days of an Employer being notified of such activity, it shall be unlawful for the Employer to discharge any Employee who engaged in such activity unless the Employer has clear and convincing evidence of just cause for such discharge.
B. WaiverAny waiver by an individual Employee of any of the provisions of this Chapter shall be deemed contrary to public policy and shall be void and unenforceable, except that Employees shall not be barred from entering into a written valid collective bargaining agreement waiving a provision of this Chapter if such waiver is set forth in clear and unambiguous terms. Any request to an individual Employee by an Employer to waive his or her rights under this Chapter shall constitute a violation of this Chapter.
C. Retention of RecordsEach Employer shall maintain for at least three years for each Employee a record of his or her name, hours worked, pay rate, Paid Sick Leave accrual and usage, and Service Charge collection and distribution. Each Employer shall provide each Employee a copy of the records relating to such Employee upon the Employee's reasonable request.
D. Notice to EmployeesEach Employer shall give written notification to each current Employee and to each new Employee at time of hire, of his or her rights under this Chapter. The notification shall be in all languages spoken by a more than 10% of the Employees, and shall also be posted prominently in areas at the work site where it will be seen by all Employees. The City Administrator is authorized to prepare sample notices and Employer use of such notices shall constitute compliance with this subsection.
E. City AccessEach Employer shall permit access to work sites and relevant records for authorized City representatives for the purpose of monitoring compliance with this Chapter and investigating employee complaints of noncompliance, including production for inspection and copying of its employment records, but without allowing social security numbers to become a matter of public record.
F. City Authorized to Consider ComplianceCity officials are hereby authorized to consider, to the maximum extent permitted by law, an Employer's record of noncompliance with this Chapter in making City decisions on City contracts and land use approvals and other entitlements to expand or operate within the City. The City is authorized to either deny approval or include conditions for approval ensuring future compliance by investigating complaints of noncompliance with this Chapter and rendering City decisions on the merits of such complaints. The City is authorized to award the same relief in its proceedings as a court may award. Pursuit of such administrative remedy shall not be a prerequisite for pursuing a private action under this Chapter.
8. Private Rights of ActionAny Person claiming harm from a violation of this Chapter may bring an action against the Employer in court to enforce the provisions of this Chapter and shall be entitled to all remedies available to remedy any violation of this Chapter, including but not limited to back pay, reinstatement and/or injunctive relief. Violations of this Chapter are declared to irreparably harm the public and covered employees generally. The Court shall award reasonable attorney's fees, witness fees and expenses to any plaintiff who prevails in an action to enforce this Chapter. Any Person who negligently or intentionally violates this Chapter shall be liable for civil penalties for each violation with a maximum of $1000 per violation, the amount to be determined by the court. No criminal penalties shall attach for any violation of this Chapter, nor shall this Chapter give rise to any cause of action for damages against the City.
9. No Preemption of Higher StandardsThe purpose of this Chapter is to ensure minimum labor standards. This Chapter does not preempt or prevent the establishment of superior employment standards (including higher wages) or the expansion of coverage by ordinance, resolution, contract, or any other action of the City or Port of Oakland. This Chapter shall not be construed to limit a discharged Employee's right to bring a common law cause of action for wrongful termination.
10. SeverabilityIf any provision or application of this Chapter is declared illegal, invalid or inoperative, in whole or in part, by any court of competent jurisdiction, the remaining provisions and portions thereof and applications not declared illegal, invalid or inoperative shall remain in full force or effect. The courts are hereby authorized to reform the provisions of this Chapter in order to preserve the maximum permissible effect of each subsection herein. Nothing herein may be construed to impair any contractual obligations of the Port or City of Oakland. This Chapter shall not be applied to the extent it will cause the loss of any federal or state funding of City or Port activities."
;and be it