Agenda Item 40
May 6,2014
Introduction
MEMORANDUM
May 2, 2014
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attnrney/Q
SUBJECT:
Introduction:
Bill 29-14, Contracts and Procurement - Wage Requirements ­
Reporting
Bill 29-14, Contracts and Procurement - Wage Requirements - Reporting, sponsored by
the Council President at the request of the County Executive, is scheduled to be introduced on
May 6. A public hearing will be scheduled at a later date.
Bill 29-14 would require a County contactor subject to the Wage Requirements Law to
report summary wage data, including data by gender and race, paid to their employees who work
on County contracts.
It
would also prohibit a County contractor from retaliating against an
employee who discloses salary information to another person or employee under certain
circumstances.
This packet contains:
Bil129-14
Legislative Request Report
Memo from County Executive
Circle #
1
5
7
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Bill No.
29-14
Conceming: Contracts and Procurement
- Wage Reguirements - Reporting
Draft No.2
Revised: April 29. 2014
Introduced:
May 6. 2014
Enacted:
November 6. 2015
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -:..:.No:=.:n":.::e:..-----,,..--_ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the request ofthe County Executive
AN
ACT
to:
(1)
(2)
(3)
require certain County contractors to report summary
da~
including
data
by gender
and race, paid
to
their employees who work on County contracts;
prohibit certain County contractors from retaliating against certain employees that
disclose salary infonnation
to
another person or employee; and
generally amend County wage requirements law for contractors.
By amending
Montgomery County Code
Chapter 11 B, Contracts and Procurement
Article VI, Contract Administration
Section I1B-33A - Wage Requirements
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
"It
"It
"It
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law
by
original bill.
Added by amendment.
Deleted from existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
29-14
1
Sec.
1.
Section IlB-33A is amended as follows:
IlB-33A. Wage requirements.
2
3
4
*
(g)
Wage reporting.
*
*
5
6
ill
The Director must insert into each contract subject to this
Section
f!
provision that requires the contractor to submit to the
Director
f!
report (on
f!
schedule determined
Qy
the Director)
showing
f!
summary of the wages paid to its employees, who
performed direct, measurable work under the contract,
Qy
gender and race.
7
8
9
10
11
ill
Prohibition against retaliation.
Except as provided in
12
paragraph
Q1
f!
contractor must not discharge or in any other
manner discriminate or retaliate against an employee, who
performed direct, measurable work under the contract, because
the employee:
(A) has inquired about, discussed, or disclosed the wages of
the employee or another employee;
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14
15
16
17
18
19
an
(Q
asserts any right under this subsection; or
files any complaint for violation of this subsection.
20
21
22
23
24
ill
The prohibition against retaliation under paragraph
ill
does not
apply to an employee who has access to wage information of
. other employees or applicants as part of the employee's
essential job functions and discloses the wages of other
employees or applicants to individuals who do not otherwise
have access to the information, unless the disclosure
response to:
IS
25
m
26
27
.cAl
f!
formal complaint or charge;
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BILL
No. 29-14
28
29
ill}
in furtherance of an investigation, proceeding, hearing, or
action, including an investigation conducted Qy the
contractor; or
30
31
{C}
is consistent with the contractor's legal duty to furnish
information.
32
33
34
ill
The Director may refer
~
report to the Office of Human Rights
for investigation of
~
possible violation of Chapter 27. Human
Rights and Civil Liberties.
35
36
(hl
.
Conflicting requirements.
If any federal, state, or County law or
37
38
39
40
regulation requires payment of a higher wage, that law or regulation
controls. If any applicable collective bargaining agreement requires
payment of a higher wage, that agreement controls.
[(hl]
ill
Enforcement
41
42
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44
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46
*
(5)
*
*
Each contract may specify that liquidated damages for any
noncompliance with this Section includes the amount of any
unpaid wages, with interest, and that the contractor is jointly
and severally liable for any noncompliance by a subcontractor.
In addition, each contract must
(A)
specify~
47
48
that liquidated damages be imposed in the event that
~
contractor violates the wage reporting requirement in
subsection
{gl;.
and
ill}
49
50
51
52
that an aggrieved employee, as a third-party beneficiary,
may by civil action enforce the payment of wages due
under this Section and recover any unpaid wages with
interest, a reasonable attorney's fee, and damages for any
retaliation for asserting any right under this Section.
53
54
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W\BILLS\l429 Contracts And Procmernent - Wage Requirements-Reporting\BiII2.Doc
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Bill No. 29-14
55
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57
[ill]
ill
Report
*
*
*
Sec. 2. Transition.
This Act applies to a contract awarded after October 1,
58
59
60
2014, but does not apply to an amendment or extension of a contract originally
awarded before October 1, 2014.
Approved:
61
62
Craig Rice, President, County Council
Date
63
64
Approved:
Isiah Leggett, County Executive
Date
65
66
This is a correct copy o/Council action.
Linda M. Lauer, Clerk ofthe Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 29-14
Contracts and Procurement -Wage Requirements
-
Reporting
DESCRIPTION:
Bill 29-14 would require a County contactor subject to the Wage
Requirements Law to report summary wage data, including date, by
gender and race, paid to their employees who work on County
contracts.
It
would also prohibit a County contractor from retaliating
against an employee who discloses salary information to another
person or employee under certain circumstances.
President Obama recently recognized the lack of equality in pay
between men and women in the workforce, with women consistently
receiving less than men. Without current and accurate data to trace
compensation based upon race and gender, the root that causes this
disparity is difficult to trace. Employees, in some circumstances,
may face discrimination or retaliation for discussing their
compensation with one another, impeding efforts by individuals to
assert their right to equal pay. In an effort to encourage equal pay,
this Bill adds wage reporting requirements for County contractors to
Chapter lIB of the County Code. Contractors must report, by race
and gender, the annual wages paid to employees that performed
direct, measurable work under a County contract. Additionally, the
Bill prohibits discrimination or retaliation against a Contractor's
employees discussing their compensation.
The Bill requires
liquidated damages provisions in contracts for violations, empowers
the Director of General Services to perform audits to verify
compliance and to refer matters to the Office of Human Rights under
Chapter 27 for investigation.
Wage equality.
Department of General Services.
To be requested.
To
be
requested.
To be requested.
Not applicable.
David E. Dise, Director
2407776191
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
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APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
Contractual liquidated damages.
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah
Leggett
County Executive
MEMORANDUM
April 24, 2014
TO:
Craig L. Rice, President
Montgomery County Council
Isiah
Leggett,
County
Executive
FROM:
SUBJECT:
-f?
~.,o;f---"
)
/~
Legislation to Add to Chapter lIB, Contracts and Procurement -
Equal
Wage
I am attaching for the Council's consideration a bill that would amend the County's
Contract and Procurement law to
require certain
County contractors to report wages paid by race and
gender and to prohibit discrimination against employees who discuss wage information.
President Obama recently recognized the lack ofequality in pay between men and
women in the workforce, with women consistently receiving less
than
men. Without current and accurate
data
to trace compensation based upon race and gender, the root
that
causes this disparity is difficult to
trace. Employees,
in
some circumstances, may face discrimination or retaliation for discussing their
compensation
with
one another, impeding efforts by individuals to assert their right to equal pay.
In
an
effort to encourage equal pay, this Bill adds wage reporting requirements for County contractors to
Chapter lIB ofthe County Code. Contractors must report,
by
race and gender, the annual wages. paid to
employees that performed direct, measurable work under a County contract. Additionally, the Bill
prohibits discrimination or retaliation against a Contractor's employees discuSsing their compensation.
The Bill requires liquidated damages provisions in contracts for violations, empowers the Director of
General Services to perform audits to verify compliance and to refer matters to the Office ofHuman
Rights
under Chapter 27 for investigation. The amendment exempts the same contractors presently
exempt from the wage provisions ofCode
§
lIB-33A.
Thank you for your consideration of
this
matter.
IL:lh
Attachments:
Draft
legislation
Legislative Request Report
co:
David Dise, Director, DGS
Jennifer A. Hughes, Director, OMB
Joseph Adler, Director,
OHR
Marc Hansen, County Attorney
Joseph F. Beach, Director, DOF
montgomervcountymd.gov/311 . . , . . . 240--773-3556 TTY
~