An ordinance adopting a new chapter to the Metropolitan Code entitled the "Nashville Living Wage".

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLIAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

SECTION 1. Definitions. As used in this ordinance, unless otherwise noted, the following terms mean:

(A) "Contractor" means any person or entity that enters into a service contract with a Metro-Affiliated Agency in an amount equal to or greater than $20,000 and employing more than one person.

(B) "Covered Employee" means
(1) An employee of a Service Contractor who is employed in connection with the service contract; or
(2) An employee of an Economic Assistance Recipient who is employed at or in connection with the facility, property or program that has been the subject of the economic assistance. Where an Economic Assistance Recipient has more than one site, office or facility, only employees whose work is based at or administered from, those sites, offices or facilities with which the economic assistance is connected, or that benefit from the economic assistance shall be covered employees; or
(3) An employee of a Metro-Affiliated Agency

(C) "Covered Employer means an Economic Assistance Recipient, a Contractor, a Subcontractor or a Metro-Affiliated Agency.

(D) "Economic Assistance" means any grant, tax benefit or abatement, bond financing, subsidy, lease or sale of property, concession or other form of assistance that is awarded, realized, extended or provided by, through, or with the approval of a Metro-Affiliated Agency. This definition includes assistance that a Metro-Affiliated Agency receives from another source and then awards, realizes or provides to another entity, and includes assistance that a Metro-Affiliated Agency awards, realizes, extends or provides pursuant to a grant of authority from another source, except where state or federal law bars the Metro-Affiliated Agency from making such assistance subject to the requirements of this ordinance.

(E) "Economic Assistance Recipient" means any person or entity that receives or enters into agreements for Economic Assistance of $20,000 or more. For purposes of determining whether assistance to a recipient meets this threshold the total value of each economic assistance shall be considered, regardless of whether part of all of that value will be realized over a multi-year period. A person who enters into an agreement for Economic Assistance triggering coverage under this definition shall be deemed an Economic Assistance Recipient forever.

(F) "Employee" means any person who performs work for a person or entity, and includes employees, contracted workers and independent contractors.

(G) "Health Benefits" means providing health care benefits for employees and/or their dependents valued at no less than the value of the Health Benefits Supplement for each hour worked, or making a contribution in the same amount towards the purchase of such benefits. A covered Employer seeking to provide health benefits in lieu of the Health Benefits Supplement must file proof of provision of such benefits with the Metro-Affiliated Agency not later than 30 days after receipt of the Service Contract or Economic Assistance.

(H) "Living Wage" means an hourly wage equal to the Base Wage where the employer provides health benefits, as defined in this ordinance, or otherwise shall be an hourly wage equal to the sum of the Base Wage and the Health Benefits Supplement. The Base Wage shall be no less than $9.78 per hour worked. The Health Benefits Supplement shall be no less than $2.00 per hour, such that the combined value of the Base Wage and the Health Benefits Supplement shall total no less than $11.78 per hour.

(I) "Metro-Affiliated Agency" means the Metropolitan Government of Nashville and Davidson County ("Metropolitan Government") or any agency, office, position, administration, department, division, bureau, board, commission, corporation, institution, authority or unit of government (1) the expenses of which are paid in whole or in part at the expense of Metropolitan Government, or (2) over which majority control is exercised by officers of Metropolitan Government or of a Metro-Affiliated Agency or their appointees. This definition includes, but is not limited to, the Metropolitan Convention Center Commission, the Metropolitan Nashville Schools, the Metropolitan Transit Authority, the Nashville Municipal Auditorium Commission, the Nashville Career Advancement Center, the Farmers Market Board, the Nashville Arena (Gaylord Entertainment Center), the Metro Action Commission, and the Sports Authority.

(J) "Service Contract" means (1) a contract let to a Contractor by a Metro-Affiliated Agency, for the furnishing of services to or for a Metro-Affiliated Agency, except where services are incidental to the delivery of products, equipment or commodities, and that involves an expenditure equal to or greater than $20,000 or (2) a lease or license under which services contracts are let by the lessee or licensee. A contract for the purchase or lease of goods, products, equipment, supplies, or other property is not a service contract for purposes of this definition.

(K) "Subcontractor" means any person (or entity) who enters into a contracts with (1) a Contractor to assist the Contractor in performing a Service Contract or (2) an Economic Assistance Recipient to assist the recipient in performing work for which the assistance is being given or to perform services on the property which is the subject of the assistance. Service Contractors of Economic Assistance Recipients shall not be regarded as subcontractors except as provided in Article 1(B)(2).

(L) "Summer Youth Program" means a program employing primarily young people and employing these for a limited time, not to exceed five months.

SECTION 2. Payment of the Living Wage

(A) Wages: Covered Employers shall pay their Covered Employees the living wage. Such rates shall be upwardly adjusted annually, no later than August 1 in proportion to the increase in pay of regular Metropolitan Government workers approved by the Metropolitan Council. The Metropolitan Government will publish a bulletin by August 1 of each year announcing the adjusted rates, which shall take affect upon such publication. Covered Employers shall provide written notification of the rate adjustment to each of their employees and to their subcontractors, who shall provide written notification to their employees, and make payroll adjustments by October 1.

(B) Health Benefits: Health Benefits required by this ordinance shall consist of payment of at least $2.00 per hour towards the provision of health care benefits for employees and their dependents. Proof of the provision of such benefits must be submitted to the Director of Law not later than 30 days after the execution of the contract or economic assistance to qualify for the wage rate set in section 4(a) for employees with health benefits.

(C) Compensated Days Off: Covered Employers shall provide each covered employee at least twelve (12) compensated days off per year for sick leave, vacation, or personal necessity to at the employee's request. Covered employees shall accrue one compensated day off per month of full time employment. Part time employees shall accrue compensated days off proportional to that accrued by full-time employees. The employees shall be eligible to use accrued days off after the first six months of employment or consistent with company policy, whichever is sooner. Paid holidays, consistent with established employer policy, may be counted toward provision of the required 12 compensated days off.

SECTION 3. Community Advisory Board

(A) For the purpose of promoting living wage jobs and advising the Mayor, Metropolitan Council and Metropolitan Government on the most efficient application of the Nashville Living Wage Ordinance, there is established the Living Wage Community Advisory Board.

The Living Wage Community Advisory Board shall be composed of thirteen members; selected by the Mayor of the Metropolitan Government, and confirmed by a majority vote of the whole membership of the Metropolitan Council, in the following manner:
(1) Three members selected by the Mayor of the Metropolitan Government from occupations or industries affected by the living wage, at least two of whom shall be female and at least one shall be an African-American.
(2) Two members selected by the Mayor who shall be technical experts who have demonstrated commitment to the living wage by their research, at least one of whom shall be female and one of whom shall not be an economist.
(3) Two members from a list of four submitted by the Nashville Chamber of Commerce.
(4) Four members, at least one of whom shall be a female and at least one of whom shall be an African-American, from a list of seven persons submitted by the Nashville Central Labor Council
(5) One member from a list of three submitted by the Greater Nashville Black Chamber of Commerce.
(6) One member from a list of three submitted by the Hispanic Chamber of Commerce.

(C) The members of the Living Wage Advisory Board shall serve without compensation and may be removed from the Board for continued absence from meetings of the Board, physical disability or other just cause.

(D) Of the thirteen initial members, four shall be appointed for a term of two years, five shall be appointed for a term of three years, while five shall be appointed for a term of four years. The members selected as per (B)(1) and (B)(3), above, shall be initially appointed in staggered terms as well. Thereafter, members of the Living Wage Advisory Board shall be appointed for a four-year term.
(E) The Living Wage Community Advisory Board shall meet quarterly and in special sessions as required. All meetings will be open to the public.

(F) The Living Wage Community Advisory Board shall monitor and, as necessary, recommend individual or group exemptions necessary in cases in which compliance with this ordinance would cause an economic hardship. Such exemptions shall be subject to Metropolitan Council and Mayoral approval.

(G) For purposes of this Article a person cannot be counted as both female and African-American.

SECTION 4. Monitoring and Record Keeping

(A) The Director of Law, assisted by the Purchasing Agent and the Mayor's Office on Community and Economic Development, shall submit periodic reports to the Metropolitan Council and the Living Wage Community Advisory Board, which shall include the following information at a minimum:
(1) a listing of the status of all RFP's and RFQ's, service contracts and lease agreements executed and financial assistance awarded to which this ordinance applies, including the term, dollar amount and the service performed or assistance provided.
(2) a description of every instance where an exemption was granted by action of the Metropolitan Council.
(3) a listing of all Contractors and Economic Assistance Recipients that are providing health benefits, as provided for in Section 2(b).

(B) The Director of Law, assisted by the Purchasing Agent and the Mayor's Office on Community and Economic Development, shall maintain records pertaining to all complaints, hearings, determinations and findings and shall submit a regular report on compliance with this ordinance no less than annually to the Metropolitan Council and the Living Wage Community Advisory Board. Special reports and recommendations on significant issues of interest to Council and the Board will be submitted as deemed appropriate.

(C) The Director of Law, assisted by the Purchasing Agent and the Mayor's Office on Community and Economic Development, will develop rules and regulations to review contract documents to insure that relevant language and information are included in Metro RFP's, agreements and other relevant documents.

(D) The Director of Law, assisted by the Purchasing Agent and the Mayor's Office on Community and Economic Development, shall develop rules and regulations for the monitoring of the operations of the Contractors, Subcontractors and Economic Assistance Recipients to insure compliance, including the review, investigation and resolution of specific concerns or complaints about the employment practices of a Contractor, Subcontractor or Economic Assistance Recipient relative to this ordinance. In such cases the city will attempt to resolve the problem within 30 days.

(E) All covered employers shall post the living wage rate and the phone number of the Metropolitan Government at all worksites in a prominent place where it can be seen and read by all employees.

(F) Each covered employer shall submit a "Declaration of Compliance" to the Metropolitan Government stating that the employer is abiding by the provisions of this ordinance. Copies of the Declaration shall be maintained as public records.

SECTION 5. Enforcement

(A) Employee Complaint Procedure: A person who alleges violation of any provision of this ordinance may report such acts to the Metropolitan Government and, at the person's discretion, exhaust available employer internal remedies. The complaint to the Metropolitan Government shall be handled as follows:
(1) The Metropolitan Government shall provide complaint forms in English and Spanish.
(2) The person shall submit to the Metropolitan Government a completed complaint form and copies of all documents supporting the allegation.
(3) The Metropolitan Government Law Department shall notify the agency and employer of the complaint and seek resolution within five days from receipt of the compliant form. If resolution is not accomplished, the Director of Law shall initiate an investigation and seek legal remedies, if appropriate. The Metro Law Director will also forward a copy of all complaints not resolved within five days to the Living Wage Community Advisory Board.
(4) An employee claiming retaliation for alleging non-compliance with this ordinance may report the alleged retaliation in the same manner as the initial complaint.
(5) The complainant's or witness' identity will not be divulged to the employer without the individual employee's written consent.
(B) Where a violation of any provision of this ordinance has been determined, the Contractor or Economic Assistance Recipient will be given a written notice by the Director of Law per the rules and regulations promulgated by the Director of Law. Should the violation continue and/or no resolution is imminent, the Metropolitan Government shall pursue all available legal remedies, including but not limited to any or all of the following penalties and relief:
(1) Suspension and/or termination of the contract, subcontract or economic assistance for cause;
(2) Payback of any or all of the contract or economic assistance awarded;
(3) Deem the Contractor or Economic Assistance Recipient ineligible for future Metro contracts and/or economic assistance until all penalties and restitutions have been paid in full;
(4) A civil penalty payable to the Metropolitan Government in the sum of $500 for each week for each employee found not to have been paid in accordance with this ordinance;
(5) Wage restitution for each affected employee.

SECTION 6. Retaliation. Contractors, Subcontractors and Economic Assistance Recipients shall not discharge, reduce the compensation of or otherwise discriminate against any employee for making a complaint to the Metropolitan Government, participating in any of its proceedings, using any civil remedies to enforce his or her rights, or otherwise asserting his or her rights under this ordinance. Contractors, Subcontractors and Economic Assistance Recipients shall also be in compliance with federal law proscribing retaliation for union organizing.

SECTION 7. Exemptions:

(A) Exemptions are granted where application of this chapter to a particular form of economic assistance or contract violates a specific state or federal statutory, regulatory or constitutional provision.

(B) Exemptions are granted to employees under the age of 18 who are involved in a summer youth program.

(C) Exemptions are granted if the covered employer employs less than five employees for each working day in each of 20 or more calendar weeks in the current or proceeding calendar year.

SECTION 8. In the event any provision of this chapter, or its application to any person or circumstance, should be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions of this chapter or the application of such provision held invalid to any other person or circumstance.

SECTION 9. This ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Don Majors, Eileen Beehan, Lawrence Hall, Jason Alexander, Michael Kerstetter, Don Knoch, Bob Bogen, Norma Hand, Tony Derryberry, Ludye Wallace, James Stanley, J.B. Loring, Earl Campbell, Lawrence Hart, Melvin Black, Brenda Gilmore, Chris Ferrell, Amanda McClendon, Ronnie Greer, Ron Nollner, Janis Sontany, John Summers, Michelle Arriola, Ginger Hausser, Carolyn Baldwin Tucker, James Dillard, Jim Shulman