Bill No.
28-17
Concerning: Human Rights and Civil
Liberties – County Minimum Wage –
Amount – Annual Adjustment
Revised: 10/09/2017
Draft No. 4
Introduced:
July 25, 2017
Enacted:
November 7, 2017
Executive:
Effective:
July 1, 2018
Sunset Date: None
Ch.
, Laws of Mont. Co.
C
OUNTY
C
OUNCIL
F
OR
M
ONTGOMERY
C
OUNTY
, M
ARYLAND
Lead Sponsor: Councilmember Elrich
Co-Sponsors: Councilmembers Leventhal, Council Vice-President Riemer, and Councilmembers
Hucker and Navarro
AN ACT
to:
(1) increase the County minimum wage by a certain amount;
(2) require the Chief Administrative Officer to adjust the County minimum wage rate
each year;
(3) require the Office of Legislative Oversight to conduct an annual analysis of the
impact of the County minimum wage; and
(4) generally amend the laws governing the minimum wage
By amending
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XI. County Minimum Wage
Section 27-68
By adding
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XI. County Minimum Wage
Section 27-70A
Boldface
Underlining
[Single
boldface brackets]
Double underlining
[[Double
boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from 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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Sec. 1. Section 27-68 is amended and Section 27-70A is added as
follows:
27-68.
(a)
Minimum Wage Required.
County minimum wage.
Except as provided in
[[Subsection
(b)]]
subsections (c) and (d), an employer must pay wages to each employee
for work performed in the County at least the greater of:
(1)
the minimum wage required for that employee under the Federal
Act;
(2)
the minimum wage required for that employee under the State
Act; or
(3)
[$11.50]
$15.00 per hour plus any annual adjustments under
subsection (b).
(b)
Annual adjustment.
The Chief Administrative Officer must adjust the
minimum wage rate required under Subsection (a)(3), effective July 1,
[[2023]] [[2025]]
2022, and July 1 of each subsequent year, by the
annual average increase, if any, in the Consumer Price Index for Urban
Wage Earners and Clerical Workers[[, CPI-W]] (CPI-W) for
Washington-Baltimore, or a successor index, for the previous calendar
year. The Chief Administrative Officer must calculate the adjustment to
the nearest multiple of five cents, and must publish the amount of this
adjustment not later than March 1 of each year.
(c)
Exclusions.
The County minimum wage does not apply to an employee
who:
(1)
is exempt from the minimum wage requirements of the State or
Federal Act; or
(2)
is under the age of 19 years and is employed no more than 20
hours per week[[; or
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(3)
is subject to an opportunity wage under the State or Federal
Act]].
(d)
Opportunity wage.
An employer may pay a wage equal to 85% of the
County minimum wage to an employee under the age of 20 years for
the first six months that the employee is employed.
[(c)](e)
(1)
Retaliation prohibited.
A person must not:
retaliate against any person for:
(A)
(B)
lawfully opposing any violation of this Article; or
filing a complaint, testifying, assisting, or participating in
any manner in an investigation, proceeding, or hearing
under this Article; or
(2)
obstruct or prevent enforcement or compliance with this Article.
*
*
*
27-70A. Annual impact analysis.
The Office of Legislative Oversight must provide to the Council, by January
31 of each year,
[[an
analysis of impact]] a report containing data related to the
implementation of the County minimum wage
[[on]]
and the local economy.
Sec. 2. Transition.
Notwithstanding Section 27-68, as amended in Section 1, except when the
scheduled increases are temporarily suspended under subsection
[[(e)]]
(f), the
County minimum wage[[, until July 1,]]
[[2022]] [[2024,]]
must be the greater of the
minimum wage required under the Federal or State Act or:
(a)
until July, 1, 2022, for
[[an
employer who employs]]
[[26]] [[51
or more
employees]] a large employer as defined in subsection (d):
(1)
(2)
effective July 1, 2018,
[[$12.50]] [[$12.00]]
$12.25 per hour;
effective July 1, 2019,
[[$13.75]] [[$12.75]]
$13.00 per hour;
[[and]]
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(3)
effective July 1, 2020,
[[$15.00]] [[$13.50]]
$14.00 per hour[[.]];
and
(4)
effective July 1, 2021,
[[$14.25]]
$15.00 per hour[[; and]].
[[(5)
effective July 1, 2022, $15.00 per hour.]]
(b)
until the minimum wage under this subsection is equal to the minimum
wage required under Section 27-68,
[[for
an employer who employs]]
[[25]] [[50
or fewer employees; has tax exempt status under Section
501(c)(3) of the Internal Revenue Code; or has been designated by the
Office of Human Rights as an eligible services provider under]] for a
mid-sized employer as defined in subsection
[[(c)]]
(d):
(1)
(2)
(3)
effective July 1, 2018,
[[$12.00]] [[$11.75]]
$12.00 per hour;
effective July 1, 2019,
[[$12.75]] [[$12.25]]
$12.50 per hour;
effective July 1, 2020,
[[$13.50]] [[$12.75]]
$13.25 per hour;
[[and]]
(4)
(5)
(6)
(7)
effective July 1, 2021,
[[$14.25]] [[$13.25]]
$14.00 per hour[[.]];
effective July 1, 2022,
[[$13.75]]
$14.50 per hour;
[[and]]
effective July 1, 2023,
[[$14.50]]
$15.00 per hour; and
effective July 1, 2024 until it is equal to the minimum wage
required under Section 27-68, the minimum wage required under
this subsection must be adjusted each year, to the nearest multiple
of five cents, by:
(A)
the annual average increase, if any, in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-
W) for Washington-Baltimore, or a successor index, for
the previous calendar year; plus
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(B)
if the increase under subparagraph (A) is less than $0.50,
one percent of the minimum wage required for the prior
year, up to a total increase of $0.50.
(c)
until the minimum wage under this subsection is equal to the minimum
wage required under Section 27-68, for a small employer as defined in
subsection (d):
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
effective July 1, 2018, $12.00 per hour;
effective July 1, 2019, $12.50 per hour;
effective July 1, 2020, $13.00 per hour;
effective July 1, 2021, $13.50 per hour;
effective July 1, 2022, $14.00 per hour;
effective July 1, 2023, $14.50 per hour;
effective July 1, 2024, $15.00 per hour; and
effective July 1, 2025 until it is equal to the minimum wage
required under Section 27-68, the minimum wage required under
this subsection must be adjusted each year, to the nearest multiple
of five cents, by:
(A)
the annual average increase, if any, in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-
W) for Washington-Baltimore, or a successor index, for
the previous calendar year; plus
(B)
if the increase under subparagraph (A) is less than $0.50,
one percent of the minimum wage required for the prior
year, up to a total increase of $0.50.
[[An
employer who provides “home health services” as defined by 42
C.F.R. § 440.70 or “home or community-based services” as defined by
42 C.F.R. § 440.180, and receives at least 75% of gross revenues
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(d)
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through state and federal Medicaid programs, may apply to the Office of
Human Rights for designation as an eligible services provider subject to
the implementation schedule in subsection (b).]] In this Section:
(1)
large employer
means an employer who employs 51 or more
employees;
(2)
mid-sized employer
means:
(A)
an employer who employs between 11 and 50
employees; or
(B)
an employer who employs 11 or more employees and:
(i)
has tax exempt status under Section 501(c)(3) of
the Internal Revenue Code; or
(ii)
provides “home health services” as defined by 42
C.F.R. § 440.70 or “home or community-based
services” as defined by 42 C.F.R. § 440.180, and
receives at least 75% of gross revenues through
state and federal Medicaid programs.
(3)
small employer
means an employer who employs 10 or fewer
employees.
[[(d)]](e)
For the purposes of subsections (a),
[[and]]
(b), and (c), an
employer’s number of employees must be calculated based
upon the employer’s average number of employees per calendar
week during the preceding calendar year for any and all weeks
during which at least one employee worked for compensation.
For employers that did not have any employees during the
preceding calendar year, the employer’s number of employees
must be calculated based upon the average number of
employees who worked for compensation per calendar week
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during the first 90 calendar days of the current year in which the
employer engaged in business. An employer’s number of
employees must be calculated at the time the employer first
becomes subject to this Act, and that employer remains subject to
the applicable schedule under subsection (a), (b), or (c),
regardless of the number of employees employed by the
employer in subsequent years.
[[(e)]](f)
(1)
On or before January 31 of each year beginning in 2018
through
[[2022]]
2024, to ensure that economic conditions can
support a minimum wage increase scheduled under Section 2 of
this Act, the Director of Finance must make a determination
and certify to the Executive and Council whether each of the
following conditions is met:
(A)
total private employment for Montgomery County
decreased by 1.5% over the period from April 1 to June
30 of the previous year. The calculation must compare
total private employment in June to total private
employment in April, as reported by the Maryland State
Department of Labor, Licensing, and Regulation’s
Quarterly Census of Employment and Wages data series;
(B)
total private employment for Montgomery County
decreased by 2.0% over the period from January 1 to
June 30 of the previous year. The calculation must
compare total private employment in June to total private
employment in January, as reported by the Maryland
State Department of Labor, Licensing, and Regulation’s
Quarterly Census of Employment and Wages data series;
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(C)
the Gross Domestic Product of the United States, as
published by the U.S. Department of Commerce, has
experienced negative growth for the preceding two
quarters; and
(D)
the National Bureau of Economic Research has
determined that the United States economy is in
recession.
(2)
If, in any year, the Director of Finance certifies that a condition
in subparagraphs (A) through (D) of paragraph (1) is met, the
Executive may, on or before February 10 of that year,
temporarily suspend the minimum wage increases scheduled
under subsections (a),
[[and]]
(b), and (c) of Section 2 of this
Act for that year.
(3)
If the Executive temporarily suspends the scheduled minimum
wage increases for a year, all dates specified in subsections (a),
[[and]]
(b), and (c) that follow the temporary suspension must
be postponed by an additional year.
(4)
The Executive must not temporarily suspend scheduled
minimum wage increases under this Section more than two
times.
Sec. 3.
Effective Date.
This Act takes effect on July 1, 2018.
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BILL
No. 28-17
Approved:
Approved:
Isiah Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk ofthe Council
Date
- 9­
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Bill No.
28-17
Concerning: Human Rights and Civil
Liberties – County Minimum Wage –
Amount – Annual Adjustment
Revised: 10/09/2017
Draft No. 4
Introduced:
July 25, 2017
Enacted:
November 7, 2017
Executive:
Effective:
July 1, 2018
Sunset Date: None
Ch.
, Laws of Mont. Co.
C
OUNTY
C
OUNCIL
F
OR
M
ONTGOMERY
C
OUNTY
, M
ARYLAND
Lead Sponsor: Councilmember Elrich
Co-Sponsors: Councilmembers Leventhal, Council Vice-President Riemer, and Councilmembers
Hucker and Navarro
AN ACT
to:
(1) increase the County minimum wage by a certain amount;
(2) require the Chief Administrative Officer to adjust the County minimum wage rate
each year;
(3) require the Office of Legislative Oversight to conduct an annual analysis of the
impact of the County minimum wage; and
(4) generally amend the laws governing the minimum wage
By amending
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XI. County Minimum Wage
Section 27-68
By adding
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Article XI. County Minimum Wage
Section 27-70A
Boldface
Underlining
[Single
boldface brackets]
Double underlining
[[Double
boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from 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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Sec. 1. Section 27-68 is amended and Section 27-70A is added as
follows:
27-68.
(a)
Minimum Wage Required.
County minimum wage.
Except as provided in
[[Subsection
(b)]]
subsections (c) and (d), an employer must pay wages to each employee
for work performed in the County at least the greater of:
(1)
the minimum wage required for that employee under the Federal
Act;
(2)
the minimum wage required for that employee under the State
Act; or
(3)
[$11.50]
$15.00 per hour plus any annual adjustments under
subsection (b).
(b)
Annual adjustment.
The Chief Administrative Officer must adjust the
minimum wage rate required under Subsection (a)(3), effective July 1,
[[2023]] [[2025]]
2022, and July 1 of each subsequent year, by the
annual average increase, if any, in the Consumer Price Index for Urban
Wage Earners and Clerical Workers[[, CPI-W]] (CPI-W) for
Washington-Baltimore, or a successor index, for the previous calendar
year. The Chief Administrative Officer must calculate the adjustment to
the nearest multiple of five cents, and must publish the amount of this
adjustment not later than March 1 of each year.
(c)
Exclusions.
The County minimum wage does not apply to an employee
who:
(1)
is exempt from the minimum wage requirements of the State or
Federal Act; or
(2)
is under the age of 19 years and is employed no more than 20
hours per week[[; or
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(3)
is subject to an opportunity wage under the State or Federal
Act]].
(d)
Opportunity wage.
An employer may pay a wage equal to 85% of the
County minimum wage to an employee under the age of 20 years for
the first six months that the employee is employed.
[(c)](e)
(1)
Retaliation prohibited.
A person must not:
retaliate against any person for:
(A)
(B)
lawfully opposing any violation of this Article; or
filing a complaint, testifying, assisting, or participating in
any manner in an investigation, proceeding, or hearing
under this Article; or
(2)
obstruct or prevent enforcement or compliance with this Article.
*
*
*
27-70A. Annual impact analysis.
The Office of Legislative Oversight must provide to the Council, by January
31 of each year,
[[an
analysis of impact]] a report containing data related to the
implementation of the County minimum wage
[[on]]
and the local economy.
Sec. 2. Transition.
Notwithstanding Section 27-68, as amended in Section 1, except when the
scheduled increases are temporarily suspended under subsection
[[(e)]]
(f), the
County minimum wage[[, until July 1,]]
[[2022]] [[2024,]]
must be the greater of the
minimum wage required under the Federal or State Act or:
(a)
until July, 1, 2022, for
[[an
employer who employs]]
[[26]] [[51
or more
employees]] a large employer as defined in subsection (d):
(1)
(2)
effective July 1, 2018,
[[$12.50]] [[$12.00]]
$12.25 per hour;
effective July 1, 2019,
[[$13.75]] [[$12.75]]
$13.00 per hour;
[[and]]
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(3)
effective July 1, 2020,
[[$15.00]] [[$13.50]]
$14.00 per hour[[.]];
and
(4)
effective July 1, 2021,
[[$14.25]]
$15.00 per hour[[; and]].
[[(5)
effective July 1, 2022, $15.00 per hour.]]
(b)
until the minimum wage under this subsection is equal to the minimum
wage required under Section 27-68,
[[for
an employer who employs]]
[[25]] [[50
or fewer employees; has tax exempt status under Section
501(c)(3) of the Internal Revenue Code; or has been designated by the
Office of Human Rights as an eligible services provider under]] for a
mid-sized employer as defined in subsection
[[(c)]]
(d):
(1)
(2)
(3)
effective July 1, 2018,
[[$12.00]] [[$11.75]]
$12.00 per hour;
effective July 1, 2019,
[[$12.75]] [[$12.25]]
$12.50 per hour;
effective July 1, 2020,
[[$13.50]] [[$12.75]]
$13.25 per hour;
[[and]]
(4)
(5)
(6)
(7)
effective July 1, 2021,
[[$14.25]] [[$13.25]]
$14.00 per hour[[.]];
effective July 1, 2022,
[[$13.75]]
$14.50 per hour;
[[and]]
effective July 1, 2023,
[[$14.50]]
$15.00 per hour; and
effective July 1, 2024 until it is equal to the minimum wage
required under Section 27-68, the minimum wage required under
this subsection must be adjusted each year, to the nearest multiple
of five cents, by:
(A)
the annual average increase, if any, in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-
W) for Washington-Baltimore, or a successor index, for
the previous calendar year; plus
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(B)
if the increase under subparagraph (A) is less than $0.50,
one percent of the minimum wage required for the prior
year, up to a total increase of $0.50.
(c)
until the minimum wage under this subsection is equal to the minimum
wage required under Section 27-68, for a small employer as defined in
subsection (d):
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
effective July 1, 2018, $12.00 per hour;
effective July 1, 2019, $12.50 per hour;
effective July 1, 2020, $13.00 per hour;
effective July 1, 2021, $13.50 per hour;
effective July 1, 2022, $14.00 per hour;
effective July 1, 2023, $14.50 per hour;
effective July 1, 2024, $15.00 per hour; and
effective July 1, 2025 until it is equal to the minimum wage
required under Section 27-68, the minimum wage required under
this subsection must be adjusted each year, to the nearest multiple
of five cents, by:
(A)
the annual average increase, if any, in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-
W) for Washington-Baltimore, or a successor index, for
the previous calendar year; plus
(B)
if the increase under subparagraph (A) is less than $0.50,
one percent of the minimum wage required for the prior
year, up to a total increase of $0.50.
[[An
employer who provides “home health services” as defined by 42
C.F.R. § 440.70 or “home or community-based services” as defined by
42 C.F.R. § 440.180, and receives at least 75% of gross revenues
-5-
(d)
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through state and federal Medicaid programs, may apply to the Office of
Human Rights for designation as an eligible services provider subject to
the implementation schedule in subsection (b).]] In this Section:
(1)
large employer
means an employer who employs 51 or more
employees;
(2)
mid-sized employer
means:
(A)
an employer who employs between 11 and 50
employees; or
(B)
an employer who employs 11 or more employees and:
(i)
has tax exempt status under Section 501(c)(3) of
the Internal Revenue Code; or
(ii)
provides “home health services” as defined by 42
C.F.R. § 440.70 or “home or community-based
services” as defined by 42 C.F.R. § 440.180, and
receives at least 75% of gross revenues through
state and federal Medicaid programs.
(3)
small employer
means an employer who employs 10 or fewer
employees.
[[(d)]](e)
For the purposes of subsections (a),
[[and]]
(b), and (c), an
employer’s number of employees must be calculated based
upon the employer’s average number of employees per calendar
week during the preceding calendar year for any and all weeks
during which at least one employee worked for compensation.
For employers that did not have any employees during the
preceding calendar year, the employer’s number of employees
must be calculated based upon the average number of
employees who worked for compensation per calendar week
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during the first 90 calendar days of the current year in which the
employer engaged in business. An employer’s number of
employees must be calculated at the time the employer first
becomes subject to this Act, and that employer remains subject to
the applicable schedule under subsection (a), (b), or (c),
regardless of the number of employees employed by the
employer in subsequent years.
[[(e)]](f)
(1)
On or before January 31 of each year beginning in 2018
through
[[2022]]
2024, to ensure that economic conditions can
support a minimum wage increase scheduled under Section 2 of
this Act, the Director of Finance must make a determination
and certify to the Executive and Council whether each of the
following conditions is met:
(A)
total private employment for Montgomery County
decreased by 1.5% over the period from April 1 to June
30 of the previous year. The calculation must compare
total private employment in June to total private
employment in April, as reported by the Maryland State
Department of Labor, Licensing, and Regulation’s
Quarterly Census of Employment and Wages data series;
(B)
total private employment for Montgomery County
decreased by 2.0% over the period from January 1 to
June 30 of the previous year. The calculation must
compare total private employment in June to total private
employment in January, as reported by the Maryland
State Department of Labor, Licensing, and Regulation’s
Quarterly Census of Employment and Wages data series;
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(C)
the Gross Domestic Product of the United States, as
published by the U.S. Department of Commerce, has
experienced negative growth for the preceding two
quarters; and
(D)
the National Bureau of Economic Research has
determined that the United States economy is in
recession.
(2)
If, in any year, the Director of Finance certifies that a condition
in subparagraphs (A) through (D) of paragraph (1) is met, the
Executive may, on or before February 10 of that year,
temporarily suspend the minimum wage increases scheduled
under subsections (a),
[[and]]
(b), and (c) of Section 2 of this
Act for that year.
(3)
If the Executive temporarily suspends the scheduled minimum
wage increases for a year, all dates specified in subsections (a),
[[and]]
(b), and (c) that follow the temporary suspension must
be postponed by an additional year.
(4)
The Executive must not temporarily suspend scheduled
minimum wage increases under this Section more than two
times.
Sec. 3.
Effective Date.
This Act takes effect on July 1, 2018.
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BILL
No. 28-17
Approved:
Approved:
Isiah Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk ofthe Council
Date
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