BALLOT TITLE AND SUMMARY
Prepared by the City Attorney

AN INITIATIVE AMENDING THE SANTA MONICA CITY CHARTER BY ADDING A REQUIREMENT THAT CERTAIN CITY CONTRACTORS AND FINANCIAL ASSISTANCE RECIPIENTS PAY A SPECIFIED MINIMUM WAGE AND PROVIDE SPECIFIED BENEFITS TO COVERED EMPLOYEES



This initiative would amend the City Charter by adding minimum wage and employee benefit requirements applicable to certain employees doing work on certain City contracts and grants.

The initiative would cover City contracts or contract amendments involving an expenditure of more than $25,000 and a term of at least three months.  Also, all contracts covered by the City's competitive bidding requirements would be covered, and smaller contracts could be covered pursuant to regulations.  City financial assistance recipients would be covered only if they receive "discrete and direct financial assistance for economic development or job growth expressly articulated and identified by the City".  If the amount exceeds $100,000 in a 12 month period, the recipient would have to comply with the proposal for 5 years.  If the amount received is between $25,000 and $100,000, the recipient would have to comply for one year.  In the case of non-City funding, such as federal or state funding, the requirements would apply if they are consistent with applicable restrictions as determined by the funding source or a court.

The initiative's requirements would apply to an "employee" as the initiative defines that term.  The definition excludes managers, supervisors, and occupational licensees.  The definition includes workers employed by a City contractor or subcontractor who spend any time on the covered City contract work.  The definition also includes anyone working for a covered City financial assistance recipient and spending at least half of his or her time on the funded project.  Finally, the definition includes anyone working for a contractor or subcontractor of such a covered recipient and spending at least half of his time on the premises of the recipient directly involved in the City-funded activities.

The minimum wage established by the initiative is $8.32 per hour with health care benefits or $9.46 per hour without health care benefits.  Rates would be adjusted annually to reflect changes in a designated regional consumer price index or in a lower amount approved by City Council vote.  The benefits required by the initiative are 12 paid and 10 unpaid days off each year and $1.14 per hour towards health care benefits for employees and dependents if wages are at the lower of the two specified rates.  Employers would also be required to notify employees of the availability of the Earned Income Credit and to make claim forms available.  The initiative provides that its minimum wage and benefit requirements may be superceded by collective bargaining agreements; and there is exemption language on governmental employment, tax exempt employers, and local wage requirements for construction contracts.

The initiative includes an exclusivity clause.  It allows the City or voters to place a measure on the ballot establishing or modifying minimum wages or benefits for people employed within the City.  However, the initiative prohibits the City from adopting such a measure without voter approval.

Argument in Favor of

Argument Against

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This page was last modified on 01/23/2008