REPORT OF THE FINANCE
LABOR SUBCOMMITTEE
The Honorable,
The Board of Commissioners of
ATTENDANCE
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Present: |
Chairman Murphy, Vice Chairman Moreno, Commissioners
Beavers, |
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Absent: |
None (0) |
Ladies and
Gentlemen:
Your Finance
Labor Subcommittee of the Board of Commissioners of Cook County met pursuant to
notice on Tuesday, March 13, 2007 at the hour of 11:00 A.M. and Reconvened on
March 28, 2007 at 12:00 P.M. in the
Board Room, Room 569, County Building, 118 North Clark Street, Chicago,
Illinois.
Your
Subcommittee has considered the following item and, upon adoption of this
report, the recommendations are as follows:
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285079 |
AN AMENDMENT TO THE COOK PROPOSED ORDINANCE AMENDMENT BE IT ORDAINED, by the Cook County Board of
Commissioners that Chapter 34, Section 34-123 is hereby amended as follows: Sec. 34-123.
Living wage. (a)
Unless expressly waived by the County Board, not less than (b) The following words, terms and phrases,
when used in this section, shall have the meanings ascribed to them in this
subsection, except where the context clearly indicates a different meaning: Contract means any written agreement
requiring Board approval whereby the County is committed to expend or does
expend funds in connection with any contract or subcontract which requires in
the performance thereof the employment of any number of full time non-county
employees, including, but not limited to, the following classifications:
cashier, clerical, custodial, day laborer, elevator operator, home and health
care, laundry, leased employee, parking attendant, and security guard. The
term "contract" shall not include contracts with not-for-profit
organizations, community development block grants, President's Office of
Employment Training, Sheriff's Work Alternative Program, or Department of
Corrections inmates. Contracting
agency means the Eligible
contractors means
any person or business entity awarded a contract or subcontract by the County
which requires in the performance thereof the employment of any number of
full time non-county employees, including, but not limited to, the following
classifications: cashier, clerical, custodial, day laborer, elevator
operator, home and health care, laundry, leased employee, parking attendant,
and security guard. Employee means
any individual permitted to work by an employer in an occupation but does not
include any employer’s parent, spouse or child or other members of his
immediate family. This definition of
employee may be further defined by the Bureau of Human Resources. Living wage means a
Property tax incentive means a reduction in the
assessment level as set forth in Chapter 74, Article II, Division 2 of this
Code for Class 6b industrial property or Class 9 multifamily residential
property. Supportive living facilities mean programs which establish an
alternative to nursing home care for low income older persons and persons
with disabilities under Medicaid and certified by the State Department of
Public Aid. Wage means
compensation due to an employee by reason of his employment, including
allowances determined by the Bureau of Human Resources for gratuities, and
when furnished by the employer, for meals and lodging actually used by the
employee. (c) Every contract shall contain a provision or
provisions stipulating that they are currently paying the living wage
required to be paid to the employees (d) Every for-profit (e) The Purchasing Agent shall require as part
of the bidding and sole source procedure that any covered contractor provide
the County certification of its compliance with this section. (f) Any contract that violates the provisions
contained in this section shall be subject to cancellation by the (g) Any contractor disqualified from
eligibility by the (h) Annually, the County Assessor's Office
shall review and analyze the property tax incentives program to determine
whether the living wage program has resulted in less application for and
utilization of the incentive classification. A report of this review shall be
provided by the (i) This section shall apply to contracts
advertised for bid or if not advertised for bid, approved for sole source or
to for-profit persons or business entities of owner-occupied properties who
receive a Class 6b or Class 9 property tax incentive on or after January 1,
2005. (j) This section shall not apply to any
applications or renewal of a Class 9 tax incentive, as provided under Chapter
74, Article II, Division 2 of this Code, for supportive living facilities
certified by the State Department of Public Aid. (k) This section shall not apply to any
contract with the County entered into prior to the effective date of the
ordinance from which this Section is derived. (Ord. No. 98-O-21, §§ 1, 2,
9-15-1998; Ord. No. 05-O-02, §§ 1, 2, 12-1-2004; Ord. No. 05-O-42, §§ 1, 2,
9-20-2005.) *Referred to the Finance Labor Subcommittee on |
PROPOSED AMENDMENTS
TO THE COOK COUNTY
LIVING WAGE ORDINANCE
Sponsored by
The Honorable Roberto
Maldonado, Joan Patricia Murphy,
and Deborah Sims
Cook
BE IT
ORDAINED, by the Cook County Board of Commissioners that Chapter 34, Section
34-123 is hereby amended as follows:
Sec. 34-123. Living wage.
(a) Unless expressly waived by the County Board, not less than A
a living wage for services performed or produced shall be
paid to lowest wage individuals employed by a person or business entity
awarded a contract or subcontract with the County or by a for-profit
person or
business entity of an owner-occupied property who receives or renews a Class
6b, or Class 9 property tax incentive, except in applications or renewals of
Class 9 property incentives for supportive living facilities as certified by
the State Department of Public Aid, pursuant to Chapter 74, Article II,
Division 2 of this Code, the County Real Property Assessment Classification
Ordinance each employee of any employer that is awarded either (1) a
contract or subcontract with the County, or (2) a property tax incentive for
owner-occupied property.
(b) The following words, terms and
phrases, when used in this section, shall have the meanings ascribed to them in
this subsection, except where the context clearly indicates a different
meaning:
Assessor means the Assessor of
Board means the Board of Commissioners of
Chief Financial Officer or “CFO” means the Chief Financial Officer of
Commission means the
Contract means any written agreement requiring
Board approval whereby the County is committed to expend or does expend
funds in connection with any contract or subcontract which requires in the
performance thereof the employment of any number of full-time non-county
employees, including, but not limited to, the following classifications:
cashier, clerical, custodial, day laborer, elevator operator, home and health
care, laundry, leased employee, parking attendant, and security guard. The term
"contract" shall not include contracts with not-for-profit
organizations, community development block grants, President's Office of
Employment Training, Sheriff's Work Alternative Program, or Department of
Correction inmates.
Contracting agency means the County of Cook.
Eligible contractors means any person or business
entity awarded a contract or subcontract by the County which requires in the
performance thereof the employment of any number of full time non-county
employees, including, but not limited to, the following classifications:
cashier, clerical, custodial, day laborer, elevator operator, home and health
care, laundry, leased employee, parking attendant, and security guard.
Employee means
any individual permitted to work on a full-time basis by an employer in an
occupation pursuant either to work performed under a specific county contract
or to work performed on the specific property for which the employer receives a
property tax incentive. The term “employee”
does not include an individual who is the employer’s parent, spouse or child or
other members of the employer’s immediate family. This definition of employee may be further
defined by the
Employer means
any person or business entity that employs one or more full-time employees,
excluding the parent, spouse, child or other members of the employer’s
immediate family. Employer does not
include not-for-profit organizations.
Living wage means
a minimum wage of no less than $9.43 per hour if employee health
benefits are provided, or $11.78 per hour without health benefits. The employee
health benefit contribution shall not exceed 25 percent of the health insurance
premium. As of January 1, 2006, and each January 1 thereafter, the CFO shall
adjust the living wage shall be adjusted, using the most recent
federal poverty guidelines for a family of four as published annually by the
United States Department of Health and Human Services, to constitute the
following: there will be an annual
adjustment calculated as 100 percent of the federal poverty line for a family
of four (as defined by the U.S. Department of Health and Human Services) with
health benefits and 125 percent of the federal poverty line for a family of
four without health benefits.
Not-for-profit organization means a corporation having tax
exempt status under Section 501(C)(3) of the United States Internal Revenue
Code and recognized under State not-for-profit law.
Property
tax incentive means
a reduction in the assessment level as set forth in Chapter 74, Article II,
Division 2 of this Code for owner-occupied Class 6b industrial property,
Class 8 industrial property, or Class 9 multifamily residential
property. For the purpose of this
Ordinance, “property tax incentive” shall not include a Class 9 designation
granted to supportive living facilities, which establish an alternative to
nursing home care for low income older persons and
persons with disabilities under Medicaid and which are
certified by the State Department of Public Aid pursuant to Chapter 74, Article
II, Division 2 of this Code, the
Purchasing Agent means the Purchasing Agent of
Supportive living facilities mean programs which establish an alternative to nursing
home care for low income older persons and persons with disabilities under
Medicaid and certified by the State Department of Public Aid.
Wage means
compensation due to an employee by reason of his employment, including
allowances for gratuities and for meals and lodging that are furnished by the
employer and actually used by the employee.
This
definition of wage may be further defined by the
(c)
Every
contract shall contain a provision or provisions stipulating that they are
currently paying the living wage required to be paid to the employees listed
under listed under the definition of living wage set forth in this section and
each such contract shall further contain provisions obligating the eligible
contractor, or subcontractor of such eligible contractor, to pay its employees
for work at not less than the living wage. the contractor and all
subcontractors are currently paying their employees a living wage and
obligating the contractor and all subcontractors to pay their employees not
less than the living wage throughout the duration of the contract.
(d)
Every for-profit person or business entity of an owner-occupied property
who receives or renews a Class 6b or Class 9 property tax incentive, except as
exempted herein for state certified supportive living facilities, shall provide
an affidavit to the applicable County agency stipulating that such person or
business entity is currently paying the living wage required to be paid to the
employees listed under the definition of living wage set forth in this section.
Every employer that receives or renews a property tax incentive shall
provide an affidavit to the Assessor stipulating that such employer is
currently paying the living wage to its employees as required by this
Ordinance.
(e)
The
Purchasing Agent shall require as part of the bidding and sole source procedure
that any covered contractor provide the County certification of its
compliance with this section.
(f)
Any
contract that violates the provisions contained in this section shall be
subject to cancellation by the County
(g)
Any contractor disqualified from eligibility by the County Board shall be ineligible for two years
following violation of this section. The CFO shall
annually notify all employers required to pay the living wage of the annual
living wage adjustment. Within 30 days
of said notification, such employers shall submit an affidavit to the CFO
stating that (1) they paid the living wage during the previous calendar year,
and that (2) they are currently paying the living wage as adjusted by the
CFO. If an employer fails to timely
submit such an affidavit, the CFO shall (1) notify the Assessor to revoke any
property tax incentive the employer may have received, or (2) notify the
Purchasing Agent to cancel, subject to Board approval, any contract the
employer may have with Cook County.
(h)
Annually, the County Assessor's Office shall review and analyze the
property tax incentives program to determine whether the living wage program
has resulted in less application for and utilization of the incentive
classification. A report of this review shall be provided by the County Board. The
Assessor shall provide annual written notification to the CFO of all employers
receiving property tax incentives including the employer’s name, mailing, and
email address.
(i)
This section shall apply to contracts advertised for bid or if not
advertised for bid, approved for sole source or to for profit persons or
business entities of owner occupied properties who receive a Class 6b or Class
9 property tax incentive on or after January 1, 2005.
Every employer shall notify its employees of the living wage requirement
at the time of hire and shall notify all of its employees annually of the
adjustment to the living wage. If any employee
contends that his employer is not paying a living wage as required by this
Ordinance, that employee may file a complaint with the Commission. The Commission shall issue rules and
regulations necessary to implement its investigatory powers. If at the conclusion of the Commission’s
investigation, the Commission finds that the employer is not paying a living
wage as required by this Ordinance, it shall (1) notify the Assessor to revoke
any property tax incentive the employer may have received, or (2) notify the
Purchasing Agent to cancel, subject to Board approval, any contract the
employer may have with Cook County.
(j) This
section shall not apply to any applications or renewal of a Class 9 tax
incentive, as provided under Chapter 74, Article II, Division 2 of this Code,
for supportive living facilities certified by the State Department of Public
Aid. At such time any
disqualified employer achieves compliance with the living wage as required by
this Ordinance, the employer may notify the CFO. The CFO shall notify the Assessor or the
Purchasing Agent that the employer is eligible for reinstatement of either the
property tax incentive or a contract, subject to Board approval.
(k) This
section shall not apply to any contract with the County entered into prior to
the effective date of the ordinance from which this section is derived. If
any one or more of the provisions of this Ordinance is declared
unconstitutional or the application thereof is held invalid, the validity of
the remainder of this Ordinance and the application of such provisions to other
persons and circumstances shall not be affected thereby.
(l) This Ordinance shall take effect
and be in force upon enactment.
Chairman
Murphy opened the meeting. The Secretary
took attendance. No action was taken on
Item Number 285079. Chairman Murphy
recessed the meeting.
Chairman Murphy reconvened the meeting on
Commissioner Maldonado noted that the Substitute Amendments
are the result of his consultation with the State’s Attorney’s Office, the
Assessor’s Office and the Chief Financial Officer.
Commissioner
Maldonado, seconded by Commissioner Beavers, moved the approval of the
Substitute Amendments. The motion
carried.
Commissioner Maldonado provided the following clarification
with regard to the Substitute Amendments:
He stated that the Substitute Amendments provide the means to enforce
the Living Wage Ordinance. He touched on
the main points of the Substitute Amendments:
Owner-occupied, industrial properties (Class 8 properties) are now included
in the Living Wage Ordinance. The Chief
Financial Officer makes the annual adjustment to the living wage, and notifies
the employers of this or any other change to the living wage. Employers must notify current and prospective
employees of the living wage. Employees
can file formal complaints against their employers through the Cook County
Commission on Human Rights, if a living wage is being withheld. Any company out of compliance with the Living
Wage Ordinance will lose their tax exemptions and/or their contract with the
County.
Commissioner Maldonado clarified that the amended Living
Wage Ordinance applies to both employers who have contracts with the County and
employers who receive tax exemptions from the County.
Chairman Murphy inquired whether there is a two-year waiting
period before an employer who has not been in compliance can reapply for a tax
exemption or contract with the County.
Commissioner Maldonado replied that, while that was originally
in the Ordinance, the current version allows that once the employer comes into
compliance, they can apply to be reinstated.
The Committee gave leave for Commissioner Sims to be added
as a sponsor of the Substitute Amendments.
Commissioner Maldonado noted that
Commissioner Butler inquired as to who will be enforcing the
living wage.
Chairman Murphy replied that the Chief Financial Officer will
require a yearly affidavit from every company attesting that they are in
compliance.
Commissioner Butler inquired as to who would police this.
Chairman Murphy replied that an employee would have to file
a complaint with the Cook County Human Rights Commission.
Commissioner Butler inquired whether the State’s Attorney’s
Office had reviewed the amended item.
Commissioner Maldonado replied that the following entities,
in addition to the State’s Attorney’s Office, have approved the amended
item: Chief Financial Officer, Assessor,
Assessor’s Office, Purchasing Agent and the Human Rights Commission.
Commissioner
Maldonado, seconded by Commissioner Beavers, moved the approval of
Communication Number 285079 as amended. The
motion carried.
Commissioner Maldonado
moved to adjourn the meeting, seconded by Commissioner Butler. The motion carried and the meeting was
adjourned.
YOUR COMMITTEE RECOMMENDS THE FOLLOWING ACTION WITH REGARD TO THE
MATTERS NAMED HEREIN:
Communication Number 285079 Approved as Amended
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Respectfully
submitted, Finance
Labor Subcommittee xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Joan
Patricia Murphy, Chairman |
Attest:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Matthew B.
DeLeon, Secretary