6455ORDINANCE NO. 6455
AN ORDINANCE OF THE CITY OF ANAHEIM
ADDING CHAPTER 6.99 TO TITLE 6 OF THE
ANAHEIM MUNICIPAL CODE (LIVING WAGES
PAID BY BENEFICIARIES OF CITY SUBSIDIES)
The People of the City of Anaheim do ordain as follows:
Section 1•
That the new Chapter 6.99 is added to Title 6 of the Anaheim Municipal Code, as follows:
Title 6 — PUBLIC HEALTH AND SAFETY
Chapter 6.99 — LIVING WAGES PAID BY BENEFICIARIES OF CITY
SUBSIDIES
6.99.010. PAYMENT OF MINIMUM WAGE TO EMPLOYEES.
.010 An Employer shall pay an Employee a wage of no less than the hourly rates set
under the authority of this article.
.020 On and after January 1, 2019, an Employer shall pay a wage of no less than
Fifteen Dollars per hour, which shall increase by One Dollar per hour on each January 1
thereafter through January 1, 2022.
.030 On January 1, 2023, and annually thereafter, the minimum wage will increase
annually to reflect increases in the cost of living. The cost of living increase shall be the greater
of (1) two percent (2%) or (2) the percentage increase as of September 30, 2022, and as of
September 30 in any subsequent year for further annual adjustments, over the level as of
September 30 of the preceding year of the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI -W) for the Los Angeles Metropolitan Area (Los Angeles -Riverside -
Orange County, CA), which is published by the Bureau of Labor Statistics, U.S. Department of
Labor or the successor index or federal agency. The City Manager shall publish a bulletin by
November 1 of each year announcing the adjusted rates, which shall take effect the following
January 1. Such bulletin will be made available to all Employers and to any other person who
has filed with the City Manager a request to receive such notice, but lack of notice shall not
excuse noncompliance with this section. The City Manager shall prescribe a poster advising
Employees of their rights under this article and distribute it to all Employers. An Employer shall
post the notice in a prominent place where it will be seen by Employees. An Employer shall
provide written notification of the rate adjustments to each of its Employees and make the
necessary payroll adjustments by January 1 following the publication of the bulletin.
.040 Tips or gratuities received by Employees, service charges or commissions and
extra pay as lead workers or for special assignments or night work shall not be credited as being
any part of or offset against the wage rates required by this section.
6.99.020. SERVICE CHARGES PAID TO EMPLOYEES RENDERING SERVICE.
Service charges shall not be retained by an Employer but shall be paid in the entirety by
the Employer to the Employee(s) performing services for the customers from whom the service
charges are collected. No part of these amounts may be paid to supervisory or managerial
Employees. The amounts shall be paid to the Employee(s) equitably and according to the
services that are or appear to be related to the description of the amounts given by the Employer
to the customers. The amounts shall be paid to the Employee(s) in the next payroll following
collection of an amount from the customer. This subsection does not apply to any tip, gratuity,
money, or part of any tip, gratuity, or money that has been paid or given to or left for an
Employee by customers over and above the actual amount due for services rendered or for
goods, food, drink, or articles sold or served to the customer.
6.99.030. RETENTION OF RECORDS.
Each Employer shall preserve the employment records of each Employee for the three
years preceding the effective date of this section, or if the Employee has been employed for less
than three years, for the entire length of the Employee's employment prior to the effective date,
and with respect to periods of employment after the effective date, each Employer shall preserve
the employment records of each Employee for three years from the date of the creation of a
record or any longer period of time required by other laws.
6.99.040. RETALIATION PROHIBITED.
No Employer shall discharge, reduce in compensation or otherwise discriminate against
any Employee for opposing any practice proscribed by this article, for participating in
proceedings related to this article, for seeking to enforce his or her rights under this article by any
lawful means, or for otherwise asserting rights under this article. No employer may reduce any
form of an Employee's compensation to offset the wage rates required by this Chapter.
6.99.050. ENFORCEMENT.
.010 An Employee claiming violation of this article may report such claimed violation
to the City Manager which shall investigate such complaint. Whether based upon such a
complaint or otherwise, where the City Manager has determined that an Employer has violated
this article, the City Manager shall issue a written notice to the Employer that the violation is to
be corrected within ten (10) days. In the event that the Employer has not demonstrated to the
City Manager within such period that it has cured such violation, the City Manager may then
request the City Council to debar the Employer from any future City Subsidy for three (3) years.
Such disbarment shall be to the extent permitted by, and under whatever procedures may be
required by, law.
.020 An Employee claiming violation of this section may bring an individual or class
action against his or her Employer in Superior Court to enforce the provisions of this section and
shall be entitled to all remedies available under the law or in equity appropriate to remedy any
violation of this section, including but not limited to lost compensation, damages, reinstatement
or injunctive relief. An Employee who prevails in any action to enforce this section shall be
awarded his or her reasonable attorney's fees and costs.
.030 Notwithstanding any provision of this Code or any other ordinance to the
contrary, no criminal penalties shall attach for violation of this article.
6.99.060. EXEMPTION FOR SMALL BUSINESSES.
A Small Business which claims that compliance with this Chapter would cause it to
reduce its workforce by more than 20 percent, to curtail its Employees' total work hours by more
than 30 percent, to close its business or to seek protection from its creditors under federal or state
law may apply in writing to the City Manager for an exemption from the provisions of this
Chapter. The City Manager may grant such an exemption, valid for no more than one year, upon
a proper showing by the Small Business that it meets one or more of the criteria of this section.
A Small Business may appeal the City Manager's denial of its exemption application to the City
Council within 14 days after the date of the City Manager's action.
6.99.070. DEFINITIONS.
As used in this Chapter, the following words, terms and phrases shall have the following
ascribed meanings:
.010 "Business" means any for-profit enterprise operated by one or more persons.
.020 "City" means the City of Anaheim, California.
.030 A "City Subsidy" is any agreement with the city pursuant to which a person other
than the city has a right to receive a rebate of transient occupancy tax, sales tax, entertainment
tax, properly tax or other taxes, presently or in the future, matured or uninatured.
.040 A business "benefits from a City Subsidy" if the person or an affiliate of the person
receives a City Subsidy directly or is an Employer which is a contractor or subcontractor, lessee
or sublessee, or tenant or subtenant, with respect to a person or an affiliate of a person who
receives a City Subsidy.
.050 "Compensation" includes any wages, tips, bonuses, and other payments reported as
taxable income paid by the Employer to the Employee.
.060 "Employer" means any business in the hospitality industry which benefits from a
City Subsidy and directly or indirectly or through an agent or any other person, including
through the services of a temporary service or staffing agency or similar entity, employs or
exercises control over the wages, hours or working conditions of 25 or more employees.
0.70 "Employee" means any individual who is an employee of an Employer under the
common law.
.080 "Employment records" means all employment records stating, applying, or
reflecting terms and conditions of employment, including but not limited to payroll records,
schedules, attendance records, handbooks, memoranda and other documents about terms and
conditions of employment, and personnel action forms showing such things as hiring, promotion,
demotion, compensation changes, leaves of absence, or termination.
.090 A "full-time Employee" is an Employee who works an average of at least 30 hours
per week for an Employer.
.100 "Hospitality industry" means a hotel, motel, amusement or theme park, or a
restaurant, snack bar, bar, tavern, lounge, club or other venue offering food or beverages which is
within or adjacent to a hotel, motel or amusement or theme park, or a retail store which is within
or adjacent to a hotel, motel or amusement or theme park, located in whole or in part within The
Anaheim Resort as established under Chapter 18.116 or the Disneyland Resort as established
under Chapter 18.114.
.110 "Person" means an individual, corporation, partnership, limited partnership, limited
liability partnership, limited liability company, business trust, estate, trust, association, joint
venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or
foreign.
.120 "Service Charge" means all separately -designated amounts collected by an
Employer from a customer for service by Employees, or are described in such a way that
customers might reasonably believe that the amounts are for the service including, but not
limited to, those charges designated on receipts under the term "service charge," "delivery
charge" or "porterage charge."
.130 A "Small Business" is an Employer which employs fewer than 100 full-time
employees for each working day during each of 20 or more calendar workweeks in the current or
preceding calendar year.
6.99.080. NON -EXCLUSIVITY.
The rights and remedies created by this Chapter are in addition to, and not in lieu of, any
other contractual or statutory rights and remedies of Employees, and are not intended to alter or
affect such rights and remedies.
6.99.090. COEXISTENCE WITH OTHER AVAILABLE RELIEF FOR SPECIFIC
DEPRIVATIONS OF PROTECTED RIGHTS.
The provisions of this article shall not be construed as limiting any Employee's right to
obtain relief to which he or she may be entitled at law or in equity.
6.99.100. CONFLICTS.
Nothing in this Chapter shall be interpreted or applied so as to create any power or duty
in conflict with any federal or State law.
6.99.110. SEVERABILITY.
If any subsection, sentence, clause or phrase of this article is for any reason held to be
invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the
validity of the remaining portions of this Chapter. The electors hereby declare that they would
have adopted this section, and each and every subsection, sentence, clause and phrase thereof not
declared invalid or unconstitutional, without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
Section 2. Conflicting Measures.
Consistent with California Elections Code § 9221, should another ordinance containing
provisions that conflict with this ordinance be adopted by voters at the same election as this
ordinance is adopted, the terms of the ordinance that receives the higher number of affirmative
votes shall control.
Section 3. Effective Date.
The proposed ordinance that is the subject of this initiative, once approved by the voters
at the November 6, 2018 election, or such other election as authorized by law, shall be deemed
adopted upon the date that the vote is declared by the City Council, and shall go into effect 10
days after that date.
This is to certify that Ordinance No. 6455 in the exact form above written was submitted
to the voters as Measure L on the ballot at the general municipal election held November 6,
2018, and according to the Certificate of Canvass from the orange County Registrar of Voters
received 45,237 "yes" and 38,229 "no" votes.
That the declaration of results of this canvass was adopted by the Anaheim City Council
at their regular meeting held December 4, 2018, in the form of Resolution No. 2018-147, and
said Ordinance No. 6455 will be in full force and effect 10 days following adoption of said
declaration.
In witness whereof I have hereunto set my hand this 4b day of December, 2018.
Anaheim Bulletin PROOF OF PUBLICATION
2190 S.Towne Centre Place Suite 100
Anaheim, CA 92806 Legal No. 0011210889
714-796-2209
5190168
ANAHEIM,CITY OF/CLERKS OFF
200 S ANAHEIM BLVD STE 217
ANAHEIM, CA 92805-3820
FILE NO. Ord no 6455
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA,
SS.
County of Orange
I am a citizen of the United States and a resident of the
County aforesaid; I am over the age of eighteen years, and
not a party to or interested in the above-entitled matter. I
am the principal clerk of the Anaheim Bulletin, a
newspaper that has been adjudged to be a newspaper of
general circulation by the Superior Court of the County of
Orange, State of California, on December 28, 1951, Case
No. A-21021 in and for the City of Anaheim, County of
Orange, State of California; that the notice, of which the
annexed is a true printed copy, has been published in
each regular and entire issue of said newspaper and not in
any supplement thereof on the following dates,to wit:
12/13/2018
I certify(or declare) under the penalty of perjury under the
laws of the State of California that the foregoing is true
and correct:
Executed at Anaheim, Orange County, California, on
Date: December 13, 2018.
Signature
r.LPI-12115116
ORDINANCE NO.6455
AN ORDINANCE OF THE CITY OF ANAHEIM
ADDING CHAPTER 6.99 TO TITLE 6 OF THE
ANAHEIM MUNICIPAL CODE (LIVING WAGES
PAID BY BENEFICIARIES OF CITY SUBSIDIES)
The People of the City of Anaheim do ordain as follows:
Section 1:
That the new Chapter 6.99 is added to Title 6 of the Anaheim Municipal Code,as follows:
Title 6-PUBLIC HEALTH AND SAFETY
Chapter 6.99-LIVING WAGES PAID BY BENEFICIARIES OF CITY SUBSIDIES
6.99.010. PAYMENT OF MINIMUM WAGE TO EMPLOYEES.
.010 An Employer shall pay an Employee a wage of no less than the hourly rates set under the authority of this article.
.020 On and after January 1,2019,an Employer shall pay a wage of no less than Fifteen Dollars per hour,which shall
increase by One Dollar per hour on each January 1 thereafter through January 1,2022.
.030 On January 1,2023,and annually thereafter,the minimum wage will increase annually to reflect Increases in the
cost of living. The cost of living increase shall be the greater of(1)two percent(2%)or(2)the percentage increase as of September 30,2022,and as of September 30
in any subsequent year for further annual adjustments, over the level as of September 30 of the preceding year of the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) for the Los Angeles Metropolitan Area (Los Angeles-Riverside-Orange County, CA),which is published by the Bureau of
Labor Statistics, U.S. Department of Labor or the successor index or federal agency. The City Manager shall publish a bulletin by November 1 of each year
announcing the adiusted rates,which shall take effect the following January 1. Such bulletin will be made available to all Employers and to any other person who
has filed with the City Manager a request to receive such notice, but lack of notice shall not excuse noncompliance with this section. The City Manager shall
prescribe a poster advising Employees of their rights under this article and distribute it to all Employers. An Employer shall post the notice in a prominent place
where it will be seen by Employees. An Employer shall provide written notification of the rate adiustments to each of its Employees and make the necessary
payroll adiustments by January 1 following the publication of the bulletin.
.040 Tips or gratuities received by Employees,service charges or commissions and extra pay as lead
workers or for special assignments or night work shall not be credited as being any part of or offset against the wage rates required by this section.
6.99.020. SERVICE CHARGES PAID TO EMPLOYEES RENDERING SERVICE.
'
Service charges shall not be retained by an Employer but shall be paid in the entirety by the Employer to the
Employee(s) performing services for the customers from whom the service charges are collected. No part of these amounts may be paid to
supervisory or managerial Employees. The amounts shall be paid to the Employee(s) equitably and according to the services that are or appear
to be related to the description of the amounts given by the Employer to the customers. The amounts shall be paid to the Employee(s) in the next
payroll following collection of an amount from the customer. This subsection does not apply to any tip, gratuity, money, or part of any tip, ■
gratuity,or money that has been paid or given to or left for an Employee by customers over and above the actual amount due for services rendered
or for goods,food,drink,or articles sold or served to the customer.
6.99.030. RETENTION OF RECORDS.
Each Employer shall preserve the employment records of each Employee for the three years preceding the
effective date of this section,or if the Employee has been employed for less than three years,for the entire length of the Employee's employment
prior to the effective date, and with respect to periods of employment after the effective date, each Employer shall preserve the employment
records of each Employee for three years from the date of the creation of a record or any longer period of time required by other laws.
6.99.040. RETALIATION PROHIBITED.
No Employer shall discharge,reduce in compensation or otherwise discriminate against any Employee for
opposing any practice proscribed by this article, for participating in proceedings related to this article, for seeking to enforce his or her rights
under this article by any lawful means,or for otherwise asserting rights under this article. No employer may reduce any form of an Employee's
compensation to offset the wage rates required by this Chapter.
6.99.050. ENFORCEMENT.
.010 An Employee claiming violation of this article may report such claimed violation to the City Manager which shall investigate
such complaint. Whether based upon such a complaint or otherwise,where the City Manager has determined that an Employer has violated this
article,the City Manager shall issue a written notice to the Employer that the violation is to be corrected within ten(10)days. In the event that the
Employer has not demonstrated to the City Manager within such period that it has cured such violation, the City Manager may then request the
City Council to debar the Employer from any future City Subsidy for three (3) years. Such disbarment shall be to the extent permitted by, and
under whatever procedures may be required by,law.
.020 An Employee claiming violation of this section may bring an individual or class action against his or her Employer in
Superior Court to enforce the provisions of this section and shall be entitled to all remedies available under the law or in equity appropriate to
remedy any violation of this section, including but not limited to lost compensation, damages, reinstatement or injunctive relief. An Employee
who prevails in any action to enforce this section shall be awarded his or her reasonable attorney's fees and costs.
.030 Notwithstanding any provision of this Code or any other ordinance to the contrary,no criminal penalties shall attach for
violation of this article.
6.99.060. EXEMPTION FOR SMALL BUSINESSES.
A Small Business which claims that compliance with this Chapter would cause it to reduce its workforce by more than 20 percent,
to curtail its Employees' total work hours by more than 30 percent, to close its business or to seek protection from its creditors under federal or
state law may apply in writing to the City Manager for an exemption from the provisions of this Chapter. The City Manager may grant such an
exemption,valid for no more than one year,upon a proper showing by the Small Business that it meets one or more of the criteria of this section. A
Small Business may appeal the City Manager's denial of its exemption application to the City Council within 14 days after the date of the City
Manager's action.
6.99.070. DEFINITIONS.
As used in this Chapter,the following words,terms and phrases shall have the following ascribed meanings:
.010 "Business"means any for-profit enterprise operated by one or more persons.
.020 "City"means the City of Anaheim,California.
.030 A"City Subsidy"is any agreement with the city pursuant to which a person other than the city has a right to receive a rebate
of transient occupancy tax,sales tax,entertainment tax,property tax or other taxes,presently or in the future,matured or unmatured.
.040 A business"benefits from a City Subsidy"if the person or an affiliate of the person receives a City Subsidy directly or is an
Employer which is a contractor or subcontractor, lessee or sublessee, or tenant or subtenant,with respect to a person or an affiliate of a person
who receives a City Subsidy.
.050 "Compensation"includes any wages,tips,bonuses,and other payments reported as taxable income paid by the Employer to
the Em loyee.
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The provisions of this article shall not be construed as limiting any Employee's right to obtain relief to which he or she may be entitled at law or in
equity.
6.99.100. CONFLICTS.
Nothing in this Chapter shall be interpreted or applied so as to create any power or duty in conflict with any federal or State law.
6.99.110. SEVERABILITY.
If any subsection,sentence,clause or phrase of this article is for any reason held to be invalid or unconstitutional by a court of
competent iurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The electors hereby declare that they
would have adopted this section, and each and every subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional,
i without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
Section 2. Conflicting Measures.
Consistent with California Elections Code 49221,should another ordinance containing provisions that conflict with this
ordinance be adopted by voters at the same election as this ordinance is adopted,the terms of the ordinance that receives the higher number of
affirmative votes shall control.
Section 3. Effective Date.
The proposed ordinance that is the subject of this initiative,once approved by the voters at the November 6,2018 election,or such
other election as authorized by law,shall be deemed adopted upon the date that the vote is declared by the City Council,and shall go into effect 10
days after that date.
This is to certify that Ordinance No.6455 in the exact form above written was submitted to the voters as Measure L on the ballot at
the general municipal election held November 6, 2018, and according to the Certificate of Canvass from the orange County Registrar of Voters
received 45,237"yes"and 38,229"no"votes.
That the declaration of results of this canvass was adopted by the Anaheim City Council at their regular meeting held
December 4,2018, in the form of Resolution No.2018-147,and said Ordinance No.6455 will be in full force and effect 10 days following adoption of
said declaration.
In witness whereof I have hereunto set my hand this 4th day of December,2018.
/S[LINDA N.ANDAL
CITY CLERK OF THE CITY OF ANAHEIM
Published Anaheim Bulletin December 13,2018 11210&99
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is
the original Ordinance No. 6455 and was published in the Anaheim Bulletin on the 13th
day of December 2018.
4114 Am; dallilL
'We WI
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)