Bill No.
27-13
Conceming: Human Rights and Civil
Liberties - County Minimum Wage ­
Dollar Amount
Revised: November 26,2013 Draft No.
L
Introduced:
October 1, 2013
Enacted:
November 26,2013
Executive: _-:--::--:_-:-:-_ _ _ __
Effective:
July
1.
2014
Sunset Date:
-.:...::.No=n~e,,:---::--
_ _ __
Ch. _ _,
Laws
of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers EIrich, Ervin and Council President Navarro
AN
ACT to:
(1)
require certain employers in the County to pay a minimum wage to certain
employees working in the County;
(2)
llprovide a credit for certain employers who provide health insurance to employees
working in the County;
(3)]] provide enforcement by the Office of Human Rights and the Human Rights
Commission or the appropriate State agency;
[[(4)]]
ill
authorize the Human Rights Commission to award certain relief; and
[[(5)]]
ill
generally regulate the minimum wage paid to an employee working in the
County for certain employers.
By amending
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Sections 27-7 and 27-8
By adding
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XI, Minimum Wage
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected
by bill.
* " "
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 27-13
1
Sec. 1.
Sections 27-7 and 27-8 are amended and Chapter 27, Article
2
XI is added as follows:
27-7. Administration and enforcement.
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(a)
Filing complaints.
Any person sUbjected to a discriminatory act or
practice in violation of this Article.1 or any group or person seeking to
enforce this Article or [Article] Articles X or XI, may file with the
Director a written complaint, sworn to or affirmed under the penalties of
perjury, that must state:
(1)
(2)
the particulars of the alleged violation;
the name and address ofthe person alleged to have committed the
violation; and
(3)
any other information required by law or regulation.
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*
(f)
*
*
Initial determination, dismissal before hearing.
(1)
The Director must determine, based on the investigation, whether
reasonable grounds exist to believe that a violation of this Article
or [Article] Articles X or XI occurred and promptly send the
determination to the complainant and the respondent.
(2)
If the Director determines that there are no reasonable grounds to
believe a violation occurred, and the complainant appeals the
determination to the Commission within 30 days after the
Director sends the determination to the complainant, the Director
promptly must certifY the complaint to the Commission. The
Commission must appoint a case review board
to
consider the
appeal. The board may hear oral argument and must:
(A)
(B)
dismiss the complaint without a hearing;
order the Director to investigate further; or
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BILL
No,
27-13
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(C)
set the matter for a hearing by a hearing examiner or the
board itself, and consider and decide the complaint in the
same manner as if the Director had found reasonable
grounds to believe that a violation of this Article or
[Article] Articles X or XI occurred.
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(3)
If the Director determines that there are reasonable grounds to
believe a violation occurred, the Director must attempt to
conciliate the matter under subsection (g).
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*
27-8.
Penalties and relief.
*
*
(a)
Damages and other relieffor complainant.
After finding a violation
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ofthis Article or [Article] Articles X or XI, the case review board may
order the payment of damages (other than punitive damages) and any
other relief that the law and the facts warrant, such as:
*
(2)
*
*
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equitable relief to prevent the discrimination or the violation of
[Article] Articles X or XI and otherwise effectuate the purposes
of'this Chapter;
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*
(4)
*
*
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any other relief that furthers the pUlposes of this Article or
[Article] Articles X or XI or is necessary to eliminate the effects
of any discrimination prohibited under this Article.
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*
ARTICLE XI.
27-67.
*
*
County Minimum Wa2e.
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Findings and Definitions.
W
Findings.
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BILL
No.
27-13
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ill
(£)
Many persons employed in the County are paid wages which are
insufficient to sustain minimum standards of living in the County.
Minimum standards of living in the County are higher than the
minimum standards of living in many other areas of the State.
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ill
Minimum wage standards in the County are necessary to:
(A)
ill}
promote the health and welfare ofCounty residents;
safeguard employers and employees against unfair
competition;
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(Q
(D)
increase the stability of industry in the County;
increase the buying power of employees in the County;
and
ill)
decrease the need for the County to spend public money
for the relief of employees who also live in the County.
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!..Q)
Definitions.
As used in this Article:
[[
Consumer Price Index
means the Consumer Price Index for All Urban
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Consumers: All items in Washington-Baltimore, DC-MD-VA-WV
(CMSA), as published
Qy
the United States Department of Labor,
Bureau of Labor Statistics, or
~
successor index.]]
Director
means the Executive Director of the Office of Human Rights
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and includes the Executive Director's designee.
Employ
means to engage
~
person to work for compensation.
Employee
means any person permitted or instructed to work or be
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present
Qy
an employer in the County and who is an employee subject
to the minimum wage requirements ofthe Federal Act or the State Act.
Employer
means any person, individual, proprietorship, partnership,
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joint venture, corporation, limited liability company, trust, association,
or other entity QRerating and doing business in the County that employs
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BILL
No. 27-13
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or more persons in the County. Employer includes the County
government. but does not include the United States, any State, or any
other local government.
Federal Act
means the federal Fair Labor Standards Act of 1938, as
amended.
[[Health insurance
means Insurance coverage that is part of an
employer benefit package that
Pm
for medical expenses incurred
Qy
an
employee and an employee's family either
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reimbursing the employee
or
Qy
paying the care provider directly.]]
State Act
means the Maryland Wage and Hour Law, as amended.
Wage
means all compensation that is due to an employee for
employment.
27-68.
Minimum Wage Required.
County minimum wage.
Except as provided in Subsection
[[@]]
[LC£)]]
!ill
!h1
an employer must 00 wages to each employee [[working]] for
work performed in the County at least the greater of:
ill
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the minimum wage required for that employee under the Federal
Act;
the minimum wage required for that employee under the State
Act; [[Qr]]or
[(the County mInImUm wage of $12]] [[$11.50]] [($10.75]]
$11.50 per hour[[J. as adjusted under Subsection
(Q}]][~
less any
health insurance credit under Subsection
(£}1.HU][[:
or
L1l
the lesser of $11.50 per hour or the minimum wage required for
that employee under the State Act plus an additional $1 per
hour]]~
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BILL
No.
27-13
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®
[[Annual adjustment.
The Chief Administrative Officer must adjust the
minimum wage rate required under Subsection (a)C3), effective]]
[[July)) [[October
..L
2017, and)) [[July)) [[October
1
of each subsequent
year,
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hY
the))
[[annual average increase, if any, in the Consumer Price
Index for the previous calendar year]) [[same measure. if any, used
to
adjust the minimum wage under the State Act.
The Chief
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Administrative Officer must calculate the adjustment to the nearest
mUltiple of
~
cents, and must publish the amount of this adjustment not
later than]] [[March)) [[June
1
of each year.
w]]
[[Health insurance credit.
An employer who provides health insurance
to any employee who works in the County may reduce the County
minimum wage payable under paragraph (a)(3) to any employee who is
eligible to receive health insurance
hY
all
or part of the per-employee
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hourly cost ofthe employer's share of the premium for that insurance.
@)]
Exclusions.
The County minimum wage does not
illmlY
to an employee
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who:
ill
is exempt from the minimum wage requirements of the State or
Federal Act;
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ill
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@
[[i§ £!
tipped employee under the State Act)] is under the age of 19
years and is employed no more than 20 hours per week; or
is subject to an opportunity wage under the State or Federal Act.
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Retaliation prohibited.
A person must not:
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ill
retaliate against any person for:
(A)
lawfully opposing any violation ofthis Article: or
filing a complaint. testifying, assisting, or participating
in
~manner
WJ
in an investigation. proceeding, or hearing
under this Article: or
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BILL
No. 27-13
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(2J
obstruct or prevent enforcement or compliance with this Article.
27-69.
Tipped Employees.
!ill
Definition.
As used in this Section.
tipped emplovee
means:
ill
an employee who:
(A)
is engaged
III
an occupation in which the employee
customarily and regularly receives more than $30 each
month
in
tips;
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!ID
has been informed by the employer about the provisions of
this Section: and
a:a
(2J
has kept all ofthe tips that the employee received.
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Notwithstanding paragraph (l)(C), this Section does not prohibit
the pooling of tips.
Lhl
Computation of wage.
Except as provided in subsection ec), an
employer may include. as part of the wage ofa tipped employee:
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(2J
an amount that the employer sets to represent the tips of the
employee: or
if the employee or representative of the employee satisfies the
Director that the employee received a lesser amount in tips, the
lesser amount.
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1£)
Limit.
The tip credit amount that the employer may include under
subsection (b) must not exceed [[50% otl] the County minimum wage
less 50% of the minimum wage required for that employee under the
State Act.
27-70
Enforcement.
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!ill
A covered employee who was paid
~
wage rate less than the County
minimum wage in violation of this Article may file
~
complaint with the
Director under Section
-7­
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BILL
No. 27-13
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(!il
The County Executive must delegate the authority to enforce this
Article to a State agency that:
ill
enforces the State Act: and
al '
is legally authorized to enforce the County minimum wage.
Sec. 2.
Transition.
Notwithstanding Section ((27-68(a)(3)]] 27-68, as added in Section 1, the
County minimum wage, until October 1, 2017. must be the greater of the minimum
wage required under the Federal or State Act or:
(a)
effective [[July]] October 1, 2014, ([$7.25 per hour for an employee
during the employee's first 90 days of employment and $8.25]] $8.40
per hour [[beginning on the employee's 91
st
day of employment]];
(b)
effective [[July]] October 1, 2015, [[$8.25 per hour for an employee
during the employee's first 90 days of employment and $9.75]] $9.55
per hour ([beginning on the employee's 91
st
day of employment]]; and
(c)
effective [[July]] October 1, 2016, [[$9.75 per hour for an employee
during the employee's first 90 days of employment and]] ([$12.00]]
[[$11.50]] $10.75 per hour [[beginning on the employee's 91
st
day of
employment]].
Sec. 3.
Effective Date.
This Act takes effect on [[July]] October 1, 2014.
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BILL
No. 27-13
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Approved:
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Approved:
Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk ofthe Council
Date
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