Agenda Item 9
July 11, 2017
Public Hearing
MEMORANDUM
July 7, 2017
TO:
FROM:
County Council
~
Robert H. Drummer, Senior Legislative Attorney
/V)ft
'j
SUBJECT:
Public Hearing:
Bill 46-15, Human Rights and Civil Liberties - Building
Maintenance Worker - Minimum Work Week
Bill
46-15, Human Rights and Civil Liberties-Building Maintenance Worker-Minimum
Work Week, sponsored by Lead Sponsor Councilmember Riemer and Co-Sponsors
Councilmembers Navarro, Eirich, and Hucker, was introduced on November 17, 2015.
Background
Bill 46-15 would require an employer to provide a minimum work week of at least 30 hours
for each employee working as a janitor, building cleaner, security officer, concierge, doorperson,
handyperson, or building superintendent at an office building occupying at least 400,000 square
feet in the County. The Bill would also apply to a County government employee working as a
building maintenance worker in an office building of at least 400,000 square feet. The Bill would
not apply to a person working in a building owned by the United States, any State, or any local
government.
A Complaint may be filed with the County Office of Human Rights. The County Human
Rights Commission may award a range of compensatory damages for a violation, including
attorney's fees and equitable relief. The Bill would not apply to an employee:
(1)
who earns more than twice the living wage;
(2)
who works as a security officer only on Saturday or Sunday;
(3)
who temporarily replaces a building maintenance worker who is absent for less than
one week; and
(4)
of a Federal, State, or local government other than the County.
The Bill would take effect on July I, 2018.
This packet contains:
Bill 46-15
Legislative Request Report
Fiscal and Economic Impact statement
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Bill No.
46-15
Concerning: Human Rights and Civil
Liberties - Building Maintenance
Worker - Minimum Work Week
Revised: November 24, 2015 Draft No.
§_
Introduced:
November 17 2015
May 17, 2017
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective:
July 1, 2018
Sunset Date: ~No=n~e_ _ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Riemer
Co-Sponsors: Councilmembers Navarro, Elrich and Rucker
AN ACT
to:
(1)
(2)
(3)
(4)
require certain employers in the County to provide certain building maintenance
workers with a minimum work week;
provide enforcement by the Office of Human Rights and the Human Rights
Commission;
authorize the Human Rights Commission to award certain relief; and
generally regulate the minimum work week for certain workers in the County.
By amending
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Sections 27-7 and 27-8, and
By adding
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XIV, Minimum Work Week for Building Maintenance Workers
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.
Deleted.from 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. 46-15
1
Sec.
1.
Sections 27-7 and 27-8 are amended and Chapter 27, Article
2
3
XIV is added as follows:
27-7. Administration and enforcement.
4
5
(a)
Filing complaints.
Any person subjected to a discriminatory act or
practice in violation of this Article~ or any group or person seeking to
enforce this Article or Articles X, XI, XII, [or]
XIII,
or XIV 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 of the person alleged to have committed the
violation; and
(3)
any other information required by law or regulation.
*
6
7
8
9
10
11
12
13
*
*
14
(f)
Initial determination, dismissal before hearing.
15
16
17
18
19
( 1)
The Director must determine, based on the investigation, whether
reasonable grounds exist to believe that a violation of this Article
or Articles X, XI, XII, [or] XIII, or XIV occurred and promptly
send the determination to the complainant and the respondent.
(2)
If
the Director determines that there are no reasonable grounds to
20
21
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)
minimum hours\bill
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22
23
24
25
26
27
dismiss the complaint without a hearing;
order the Director to investigate further; or
0-
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BILL
NO. 46-15
28
29
30
31
32
33
34
( 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 Articles
X, XI, XII, [or] XIII, or XIV occurred.·
(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).
*
*
35
36
37
38
39
40
41
*
27-8. Penalties and relief.
(a)
Damages and other relieffor complainant.
After finding a violation
of this Article or Articles X.,_ XI, [or] XIII, or XIV, 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:
( 1)
compensation for:
(A)
(B)
(C)
(D)
(E)
reasonable attorney's fees;
property damage;
personal injury;
unreimbursed travel or other reasonable expenses;
damages not exceeding $500,000 for humiliation and
embarrassment, based on the nature of the humiliation and
embarrassment,
including
its
severity,
duration,
42
43
44
45
46
47
48
49
50
frequency, and breadth of observation by others;
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BILL
No. 46-15
51
52
53
54
55
56
(F)
financial losses resulting from the discriminatory act or a
violation of Article X or XIV; and
(G)
interest on any damages from the date of the discriminatory
act or violation, as provided in subsection (c);
(2)
equitable relief to prevent the discrimination or the violation
of Articles X~ Xt [or] XIII or XIV and otherwise effectuate
the purposes of this Chapter;
57
58
59
(3)
consequential
damages,
such
as
lost wages
from
employment discrimination or a violation of Article X or
higher housing costs from housing discrimination, for up to
2 years after the violation, not exceeding the actual
difference in expenses or benefits that the complainant
realized while seeking to mitigate the consequences of the
violation (such as income from alternate employment or
unemployment
compensation
following
employment
60
61
62
63
64
65
66
discrimination); and
(4)
any other relief that furthers the purposes of this Article or
Articles X~ Xt [or] XIII or XIV, or is necessary to eliminate
the effects of any discrimination prohibited under this
Article.
*
*
67
68
69
70
71
72
*
ARTICLE XIV. Minimum Work Week for Building Maintenance Workers.
27-83.
Definitions.
As used in this Article:
73
74
75
76
Building maintenance worker
means an individual employed at
f!
covered
location as
f!
janitor, building cleaner, security officer, concierge, doorperson,
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BILL
No. 46-15
77
78
79
handyperson, or building superintendent. A building maintenance worker does
not include:
ill
.G)
g managerial or confidential employee;
an employee who works in an executive, administrative, or professional
capacity;
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
ill
an employee who earns more than twice the wage requirement
established under Section l 1B-33A;
ill
ill
an employee who works as g security officer solely on Saturday or
Sunday; or
an employee who temporarily replaces g building maintenance worker
who is absent for less than one week.
Covered employer
means any person, individual, proprietorship, partnership,
joint venture, corporation, Limited Liability Company, trust, association, or
other entity operating and doing business in the County that employs one or
more persons as g building maintenance worker at g covered location in the
County. Covered employer includes the County government, but does not
include the United States, any State, or any other local government.
Covered leave
means paid or unpaid leave voluntarily used
.by
g building
maintenance worker as authorized
QY
Federal, State, or County law, g collective
bargaining agreement, or g written employee handbook.
Covered location
means an office building or group of office buildings under
common ownership or management occupying~ total of 400,000 square feet or
more in the County.
Covered location
does not include an office building or
group of office buildings owned
Qy
the United States, any State, or any local ·
government.
98
99
100
1O1
102
103
Director
means the Executive Director of the Office of Human Rights and
includes the Executive Director's designee.
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BILL
No. 46-15
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
Employ
means to engage
El
person to work for compensation.
Minimum work week
means the minimum number of compensated hours
provided to
~
building maintenance worker in any work week.
Work week
means
~
fixed regularly recurring period of 168 hours or 7
consecutive 24 hour periods.
27-84.
.{fil
Minimum work week; enforcement.
Minimum work week.
The minimum work week for each employee
working as
~
building maintenance worker at
~
covered location for
~
covered employer must be at least 30 hours unless the employee is taking
covered leave.
.Qi}
Complaints.
A building maintenance worker who is aggrieved
QY
~
violation of this Article may file g complaint with the Director under
Section 27-7.
Di}
Retaliation prohibited.
A person must not:
ill
retaliate against any person for:
(A)
lawfully opposing any violation of this Article; or
filing
~
.{fil
complaint, testifying, assisting, or participating in
any manner in an investigation, proceeding, or hearing
under this Article; or
122
123
ill
Sec. 2.
obstruct or prevent enforcement or compliance with this Article.
Effective date.
124
125
This Act takes effect on July 1, 2018.
126
127
Approved:
128
Roger Berliner, President, County Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 46-15
Human Rights and Civil Liberties
-
Building Maintenance Worker -Minimum Work Week
DESCRIPTION:
Bill 46-15 would require an employer to provide a minimum work week
of at least 30 hours for each employee working as a janitor, building
cleaner, security officer, concierge, doorperson, handyperson, or
building superintendent at an office building occupying at least 400,000
square feet in the County. The Bill would also apply to a County
government employee working as a building maintenance worker in an
office building of at least 400,000 square feet.
PROBLEM:
Employers of building maintenance workers often schedule a building
maintenance worker for less than 30 hours per week to avoid providing
health insurance under the Affordable Care Act.
Increase the availability of full-time work with health insurance for
these workers.
Office of Human Rights, County Attorney, Office of Procurement
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
GOALSAND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
To be researched.
Compensatory damages and attorney's fees.
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113
ROCKVILLE, MARYLAND
M
I
,ONTGOHERY COUNT)'
COl!Nr.11_
RECEIVED
MEMORANDUM
January 5, 2016
TO:
Nancy Floreen, President, Count:Y, Council
FROM:
Jennifer
A.
Hughes, Director, O~~anagement and Budget
- ~ Joseph
F.
Beach, Director, Dep~;~~~inance
SUBJECT:
£~
ntenance
FEIS for Bill 46-15, Human Rights and Civil Libgs--buildin
-
Worker-Minimum Work Week
Please find attached the thcal and economic impact statements for the above-
referenced legislation.
JAH:fz
cc:
Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nwmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public lnfonnation Office
Joseph F. Beach, Director, Department of Finance
James Stowe, Director, Office of Human Rights
Michael Coveyou, Department of Finance
Alex Espinosa, Office of Management and Budget
Phil Weeda, Office of Management and Budget
Felicia Zhang, Office of Management and Budget
Naeem
Mia,
Office
of
Management and Budget
(j)
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Fiscal Impact Statement
Council Bill 46-15, Human Rights and Civil Liberties - Building Maintenance Worker-
Minimum Wage Amendment
I.
Legislative
Summary.
Amends Sections 27-7 and 27-8 of Chapter 27, Article XIV, Administration and
Enforcement of the County Code and requires certain employers to provide a minimum
work week of at least 30 hours for each employee working as a janitor. building cleaner,
security officer, concierge, doorperson, handyman or building superintendent at an office
building occupying at least 400,000 square feet in the County. The bill also applies to a
Co1.mty employee working
as
a building maintenance worker in an office building of at
least 400,000 square feet.
This bill would not apply to an employee who earns more than twice the living wage;
who works as a security officer only on a Saturday or Sunday; who temporarily replaces
a building maintenance worker who is absent for less than one week; and an employee of
a Federal, State, or local government other
than
Montgomery County.
2. An estimate of changes in Comity revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions, and methodologies used.
Any person subject to a discriminatory act or practice in violation of the law can file a
complaint with the Office of Human Rights. The Office must investigate the complaint,
determine whether a violation did occur, dismiss the complaint, or set the matter for
hearing by the hearing examiner of the board itself. The Human Rights Commission may
award a range of compensatory damages for a violation, including attorney's fees and
equitable relief.
It
is unknown at this time how many complaints would
be
filed in
Montgomery County each year, so the effect on the Office of Human Rights' caseload
cannot be determined at th.is time. The office will monitor its workload to assess the
legislation's actual impact.
As reported by the Department of General Services, the County currently does not have
an office building occupying at least 400,000 square feet and therefore would not be
impacted by the Legislation.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Unable to determine at this time because the number of complaints that may
be
filed is
unknown; and if the County would build or occupy a building over 400,000 square feet.
4.
An
actuarial analysis through the entire amortiz.a.tion period for each bill that would affect
retiree pension or group insurance costs.
Toe proposed legislation does not affect retiree pension or group insurance costs.
5. An estimate of expenditures related to County's information technology
(IT)
systems,
including Enterprise Resource Planning (ERP) systems.
Not applicable.
6. Later actions that may affect future revenue and expenditures if the bill authorizes future
spending.
(j)
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Toe proposed legislation does not authorize future spending.
7. An estimate of the staff time needed
to
implement the bill.
See#2
8. An explanation of how the addition of new staff responsibilities would affect other duties.
Not applicable.
9. An estimate of costs when an additional appropriation is needed.
No additional appropriation is needed.
l 0. A description of any variable that could affect revenue and cost estimates.
Toe number of complaints filed with the Human Rights Commission; and future space
and building size owned or occupied by the County.
11. Ranges of revenue or expenditures that are uncertain or difficult to project.
See#2
12.
If
a bill is likely to have no fiscal impact., why that is the case.
See#2
13. Other fiscal impacts or comments.
None.
14. The following contributed
to
and concurred with this analysis:
Angela Dizelos, Department of General Services,
Marc
Hansen, County Attorney, James
Stowe, Office Of Human Rights, and Jedediah Millard, Richard Harris and Philip Weeda,
Office of Management and Budget
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Economic Impact Statement
Bill 46-15, Homan Rights and Civil Liberties -Building Maintenance Worker-
Minimum Work Week
Background:
This legislation would require certain employers in Montgomery County (County) to
provide certain building maintenance workers with a minimum work week of at least
thirty (30) hours in a covered location. Bill 46· l 5 defines a covered location
as
an office
building occupying a total of at least 400,000 square feet, including Montgomery County
government, but excludes office buildings owned by the federal, state, or other local
government. The legislation provides enforcement by the Office of Human Rights and
the Human Rights Commission and authorizes the Human Rights Commission to award
certain relief.
1. The sources of information, assumptions, and methodologies used.
Source of information include:
Maryland Department of Labor, Licensing and Regulation (DLLR),
Bureau of Labor Statistics (BLS), U.S. Department of Labor,
Montgomery County Department of Economic Development (DED),
Service Employees Industrial Union (SEIU).
From
data
provided by SEIU, there are
400
employees that would qualify
for
the
minimum work week of at least 30 hours. The infonnation is based on those
employees who are part of the collective bargaining agreement with the commercial
office market. Finance assumes that employees that would qualify for the extended
work week currently work 20 hours per week (Source: BLS and SEIU). Finally, the
average part-time employee currently earns $13.20 per hour plus an additional
$1.20
per hour for health care, training fund, and paid leave (Source: SEilJ). Average
hourly wage rates provided by DLLR are
as
follows:
Janitor
($12.75)
Building Cleaner
($12.50)
Security Guard
($18.75)
Concierge
($13.75)
For these four categories, the average hourly wage is $14.44 which is similar to the
combined wage rate provided by SEIU. Finance will assume a $14.00 per hour wage
rate for the economic impact analysis.
To determine the number
of
commercial buildings that occupy at least 400,000 square
feet, Finance obtained
data
from DED and SEIU. The total number
of
properties vary
by definition and source of infonnation. Therefore, the economic impact statement
will
analyze the impact of labor costs
and
income based on the
400
employees as
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Economic Impact Statement
Bill 46-15, Human Rights and Civil Liberties
-
Building Maintenance Worker-
Minimum Work Week
provided by SEIU and the hourly rates provided by SEIU and DLLR at $14.00 per
hour.
2. A description of any variable that could affect the economic impact estimates.
The variables that could affect the economic impact estimates
are
either a greater or
lesser number of employees who currently work less than 30 hours per week (i.e.,
400) and an average hourly wage rate that is either greater or less than what is
asswned
in
this analysis (i.e., $14.00), and currently work in an office building with
at least 400,000 square feet.
3. The Bill's positive or negative effect,
if
any on employment, spending, savings,
investment, incomes, and property values in the County.
Assuming current part-time employees work 20 hours per week, an average hourly
wage of $14.00, and the total number of part-time employees of 400, the total annual
labor costs would be $5.824 million.
If
the number of hours increased to 30 hours per week, the total annual labor costs
incurred by management and total income to part-time employees would increase to
$8. 736 million per year-
an
increase of $2.912 million or an additional $7,280 of
annual income per employee.
Bill 46-15 would have a positive economic impact on part-time employees by
increasing the average work week from an average of20 hours per week to at least 30
hours per week. But the gain
to
employees would be either partially or fully offset by
a loss in business income due to the increase in labor costs incurred by management if
they cannot reduce other fixed costs to compensate for the increase in labor costs
assuming there is not sufficient work available to cover the increased work week.
Second, it is uncertain if management would reduce the number of current employees
to a number lower than 400 employees. With
an
increase in the number of maximum
hours and labor costs, it is possible that management would reduce the overall
number of employees thereby reducing its labor costs and
as a
result have
a
negative
impact on some employees and therefore County employment and personal income.
Due to the uncertainty of how businesses will respond to an increase in labor costs
resulting from a required longer workweek - assuming there is currently no
operational need for businesses to extend the workweek - it is unclear what the net
economic impact
will
be
on employment, spending, savings, investment, incomes,
and property values in the County.
4.
If
a Bill is likely to have no economic impact, why is that the case?
Pleas<:: see #3.
Page 2 of 3
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Economic Impact Statement
Bill 46-15, Human Rights and Civil Liberties -Building Maintenance Worker
-
Minimum Work Week
5.
The following contributed to or concurred with this analysis:
David Platt, Mary
Casciotti, and Rob Hagedoom, Finance.
Jo,~1cro~
Department of Finance
Dat'e
1
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