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31 ORDINANCE NO. 2022-_____
AN ORDINANCE OF THE CITY OF CULVER CITY, STATE
OF CALIFORNIA, ADDING CHAPTER 11.33 TO THE
CULVER CITY MUNICIPAL CODE, TO ESTABLISH A
$25.00 PER HOUR MINIMUM WAGE FOR HEALTHCARE
WORKERS AT COVERED HEALTHCARE FACILITIES.
WHEREAS, nearly three years since cases were first reported, the coronavirus 19 (“COVID -19”) disease presents an ongoing transmission risk in the community and remains an acute global emergency according to the World Health Organization (WHO); and
WHEREAS, COVID-19 has broadly spread throughout California and the risk of emergent new variants of COVID -19 and future surges remain real and a significant health risk to the community, especially healthcare workers and members of our most vulnerable population; and
WHEREAS, healthcare workers perform services that are fundamental to the economy and health of the community. From the start of the COVID -19 pandemic they worked in high-risk conditions with inconsistent access to protective equipment and other safety measures; worked in public situations with limited ability to engage in physical distancing; and continually exposed themselves and the public to the spread of disease; and
WHEREAS, after over two years of working on the front lines, healthcare workers are experien cing emotional, mental, and physical fallouts of providing healthcare during a pandemic. At the same time, healthcare workers are dealing with the stress caused by the increased cost of living; and
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31 WHEREAS, hospitals , health systems , and clinics across th e state of California are facing staffing shortages that could jeopardize the availability of care in Culver City. The availability of healthcare workers is fundamental to the health of the Culver City community. Healthcare workers in Culver City will co ntinue to face safety risks and difficult working conditions as the virus presents an ongoing threat for an uncertain period, likely resulting in subsequent waves of infection; and WHEREAS, establishing a requirement for covered healthcare facilities to provide a minimum wage of $25.00 per hour to healthcare workers protects public health, supports stable incomes, and promotes job retention b y ensuring that healthcare workers are compensated for the substantial risks, efforts, and expenses they are undertak ing to provide essential service s in a safe and reliable manner as the COVID-19 virus remains a threat to the community.
NOW THEREFORE , t he City Council of the City of Culver City, California, DOES HEREBY ORDAIN as follows:
SECTION 1: Findings and Purposes.
This Ordinance, adopted by the City Council of the City of Culver City, makes the following findings and has the following purposes:
In the City of Culver City, healthcare workers are integral to the City’s wellbeing. Healthcare workers have risked their own health to ensure that residents have access to healthcare . While healthcare providers have seen drastic increases in profits, even during the COVID -19 pandemic, some healthcare workers are still underpaid and struggle to afford housing and other basic needs. Healthcare workers have been and continue to be the backbone of the COVID -19 response
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31 over the past two and a half years and deserve to be fairly compensated for keeping the community safe while facing risks to themselves and their families.
The purpose of this Ordinance is to establish a minimum wage for covered healthcare workers within Culver Cit y. Culver City needs a sufficient healthcare workforce to ensure that healthcare facilities that provide necessary care to residents and visitors o ffer consistent, timely, high-quality care. Healthcare workers in a variety of areas, including maintenance workers, cleaning staff, food service workers, and IT administrators providing services for residents and visitors within the walls of a healthcare facility, are at a significantly higher risk of exposure to COVID - 19 and its variants than similar workers performing similar services across other industries within Culver City.
Workforce Shortages and Retention
Hospitals, health systems, and clinics are facing staffing shortages that could jeopardize the availability of healthcare in the C ity. Healthcare job vacancies are rising as workers on the frontlines deal with the emotional, mental, and physical fallout of pr oviding healthcare during a pandem ic. For example, according to job posting websites, Southern California Hospital Culver City has approximately 130 job vacancies for various types of critical positions including medical assistants and maintenance workers. Workforce shortages across indus tries also mean that the healthcare industry is competing with other economic sectors to fill critical non-clinical positions such as for cleaning staff, food service workers, and IT administrators.
Healthcare Industry Profits
While healthcare workers a re expe riencing unprecedentedly difficult working conditions and burnout, the healthcare industry received billions of dollars in stimulus
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31 funds during the pandemic and many CEOs were paid compensation packages in the millions.1 The healthcare industry ne eds to f airly compensate workers who are sacrificing every day to care for their patients.
Significant Cost of Living Increases
With rising housing costs, healthcare workers are being forced to live further from their places of work, increasing their stress and leading to retention challenges.
According to BAE Economics, the City’s consultant for the City’s rent control program, the average market rate for a rental unit in Culver City is $ 2,982.00 per month, while the median home sales price in Cu lver City for 20 21-2022 is $1,800,000 for a single-family home, and $700,000 for a condominium or townhome. Raising the minimum wage can help stabilize the incomes of healthcare workers who are generally considered lower-wage earners.
Raising the minimum wage will help address retention challenges and workforce shortages a ffecting healthcare facilities in Culver City and will fairly compensate healthcare workers for their contributions and sacrifices.
SECTION 2 : The Culver City Municipal Code is here by amended to add Chapter 11.33, entitled Healthcare Workers Minimum Wage, as follows:
HEALTHCARE WORKERS MINIMUM WAGE
11.33.005 Title.
11.33.010 Definitions.
11.33.015 Payment of Minimum Wage to Healthcare Workers.
11.33.020 Retaliation.
11.33.025 Posting and Payroll Records.
11.33.030 Enforcement and Implementation.
1 S&P Global: Market Intelligence (August 19, 2022):
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/equity-packages- push-clover-bright-health-ceos-to-top-of-managed-care-pay-list-71765051
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31 11.33.035 No Waiver of Rights.
11.33.040 Coexistence with Other Available Relief.
11.33.045 One-Year Court-Granted Waiver.
11.33.050 Supercession by Collective Bargaining Agreement.
11.33.055 Conflicts.
§ 11.33.005 TITLE.
This Chapter shall be known as the “Healthcare Workers Minimum Wage Ordinance.”
§ 11.33.010 DEFINITIONS.
The following definitions shall apply to this Chapter:
CITY. The City of Culver City.
COVERED HEA LTHCARE FACILITY. Means the followi ng types of facilities, provided that they are privately owned and are located within the boundaries of the City:
1. A licensed general acute care hospital as defined in Section 1250(a) of the California Health and Safety Code, inclu ding a distinct part of any such hospital.
2. A clinic, as defined in Section 1206(d) of the California Health and Safety Code, that is conducted, operated, or maintained as an outpatient department of a general acute care hospital or acute psychiatric hospital.
3. A licensed acute psychiatric hospital as defined in Section 1250(b) of the California Health and Safety Code, including a distinct part of any such hospital.
4. A licensed chronic dialysis clinic as described in Section 1204(b) (2) of the California Health and Safety Code.
5. A licensed psychiatric health facility as defined in Section 1250.2 of the California Health and Safety Code.
6. All facilities that are part of an Integrated Healthcare Delivery System.
COVERED PHYSICIAN GROUP . A medical group practice, incl uding a professional medical corporation as defined in Section 2406 of the California Business and Professions Code, another form of corporation controlled by physicians and su rgeons, a medical partnership, or an independent practice association, provided that the group includes a total of 10 or more physicians.
EMPLOYEE. Has the same meaning as in Section 2775 of the California Labor Code.
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31 EMPLOYER. Any Person, including a corporate officer or executive, who directly or indirectly or through any other P erson, including through the services of a temporary service, staffing agency, or similar entit y, employs or exercises control over the wages, hours or working conditions of any Employee.
HEALTHCARE WORKER. An Employee who is employ ed to work at or by a Covered Healthcare Facility to provide patient care, healthcare services, or services supporting the provision of healthcare. “Healthcare Worker” includes a clinician, professional, non -professional, nurse, certified nursing assistant , aide, technician, mai ntenance worke r, janitorial or housekeeping sta ff person, groundskeeper, guard, food service worke r, laundry worke r, pharmacist, nonmanagerial administrative worker and business office clerical worker, but does not include a manager or supervisor. A “Healthcare Worker” works at a Covered Healthcare Facility only if that individual ’s primary work assignment is physically located at one or more such facilities; for exa mple, delivery workers employed principally outside a Covered Healthc are Facility are not He althcare Workers for purposes of this chapter unless employed by such a facility.
INTEGRATED HEALTHCARE DELIVERY SYSTEM. A system that includes both of the following:
(A) one or more hospitals; and
(B) Covered Physician Groups, hea lth care service plans, medical foundation clinics, or other facilities or ent ities, where the hospital or hospitals and other facilities or entities are related through:
1. Parent/subsidiary relationships, common ownership or control, or common boards of directors and shared senior management; or
2. A contractual relationship in which affiliated Covered Physician Groups or medical foundation clinics contract with a health care service plan, hospital or other part of the system, all operating under a commo n trade name; or
3. A contractual relationship in which a nonprofit health care service plan provides medical services to enrollees in a specific geographic region of the state through an affiliated hospital system, and contracts with a single Covered Physician Group in each geographic region of the state to provide medical services to a majority of the plan ’s enrollees in that region.
MINIMUM WAGE. The minimum amount that must be paid to Employees as compensation for their labo r, whether the amount is fix ed or ascertained by th e standard of time, task, piece, commission basis, or other method of calculation. “Minimum Wage” does not include bonuses, shift di fferentials, premium pa y, reimbursement or allowances for work -related equipment or other expenses, credits for meals or lod ging, tips, gratuities, or the cost of medical, dental, retirement, or similar benefits.
PERSON. An individual, corporation, partnership, limited partnership, limited liability partnership, limited liability compan y, business trust, estate, trust,
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31 association, joint venture, agenc y, instrumentalit y, or any other legal or commercial entity, whether domestic or foreign.
§ 11.33.015 PAYMENT OF MINIMUM WAGE TO HEALTHCARE WORKERS.
A. An Employer shall ensure that each Healthcare Worker it employs, or over whom it exercises control, is paid a Minimum Wage equivalent to no less than the hourly rate set forth herein or under the authority of this Chapter for hours worked within the geographic boundaries of the City.
B. The Minimum Wage for Healthcare Workers shall be as follows:
1. On March 12, 2023, the Minimum Wage shall be no less than $25.00 per hour.
2. On January 1, 2024, and annually thereafter, the Minimum Wage shall increase based on the annual increase in the cost of living, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W) for the Los Angeles metropolitan area (Los Angeles-Long Beach -Anaheim, CA), which is published by the Bureau of Labor Statistics. The City shall publish a bulletin announcing the adjusted rates, which shall take effect on January 1 of each year.
C. An Employer may not fund the Minimum Wage increases required by this Chapter in any of the following ways:
1. Reducing Healthcare Workers’ premium pay rates or shift differentials;
2. Reducing vacation, healthcare, or other non -wage benefits of any Healthcare Worker;
3. Reducing Healthcare Workers’ hours of work;
4. Laying off Healthcare Workers; or
5. Increasing charges to any Health care Worker for parking, work- related materials or equipment.
D. An Employer is in violation of Subsection C of this Section if the Minimum Wage requirements of this Chapter are a motivating factor in the Employer’s decision to take any of the actions d escribed in Subsection C of this Section, unless the Employer proves that it would have taken the same action at the time that it did irrespective of the operation of this Chapter.
§ 11.33.020 RETALIATION.
No Employer shall discha rge, terminate a contra ct with, reduce compensation to, or otherwise discriminate against or take adverse action against any Healthcare Worker for opposing any practice proscribed by this Chapte r, for participating in proceedings related to this Chapter, for seeking to enforce r ights under this Chapter by any lawful means, or for otherwise asserting rights under this Chapter. Protections of this Section shall apply to any Healthcare Worker who
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31 mistakenly, but in good faith, alleges noncompliance with this Chapter. Taking any adverse action against a Healthcare Worker within 90 days of the Healthcare Worker’s exercise of rights protected under this Chapter shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.
§ 11.33.025 POSTING AND PAYROLL RECORDS.
A. Covered Healthcare Facilities shall post in a conspicuous place a notice of the cu rrent Minimum Wage for Healthcare Workers required by this Chapter.
B. Employers of Healthcare Workers shall retain payroll records pertaining to Healthcare Workers for a minimum of four years, and shall allow the City or its designee access to such records, with appropriate notice and during business hours, to monitor compliance with the requirements of this Chapter.
§ 11.33.030 ENFORCEMENT AND IMPLEMENTATION.
A. Enforcement of this Chapter may include any of the following:
1. Establishing a process for reporting complaints of
violations of this Chapter.
2. Establishing and implementing processes for
investigating complaints and other pos sible violations of this Chapte r.
Employers and Covered Healthcare Facilities shall cooperate fully in any such investigation.
3. Establishing and implementing an administrative citation process that may include the i ssuance of correction orders, a h earing and appeal process, and the imposition of administrative fines or penalties owed to the City.
4. Taking appropriate enforcement action through the
administrative citation process, civil actions, or other approaches on behalf of Healthcare Workers, collecting back wages and any other amounts owed to Healthcare Workers, and disbursing them to Healthcare Workers.
5. Permitting any person, including a legal entity or
organization or a government agency, acting for the interests of itself, its member s, or the general public to bring a civil action on behalf of Healthcare Workers and collecting damages to enforce this Chapter.
6. Conducting any other education and enforcement
activities necessary to ensure compliance with this Chapter.
B. The City is authorized to promulgate rules and regulations and issue determinations and interpretations relating to this Chapter that are consistent with its purposes. Violations of the administrative regulations adopted pursuant to this Chapter shall constitute violations of this Chapter, and shall subject the violator to the penalties set forth in this Chapter.
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31 C. The City may seek to enter into an agreement with the Department of Consumer and Business Affairs of the County of Los Angeles to allow the County’s Wage Enforcement Program to provide wage enforcement and education services necessary for enforcement of this Chapter. If the City and County enter into such an agreement, it may include any services necessary to carry out th e enforcement and education re sponsibilities and activities described in Subsection A of this Section or pursuant to rules and regulations relating to this Chapter.
D. Any person, including a legal entity or organization or a government agency, acting fo r the interests of itself, its members, or the general public may bring a civil action to enforce this Subchapter. Upon proof of a violation, a court shall award the following:
1. Damages in the amount of either:
a. Upon proof, actual damages; or
b. With insufficient or no proof of damages, five hundred dollars ($500) for each violation of this Subchapter (hereinafter "statutory damages"). Each day of a continuing violation shall constitute a separate violation. Notwithstanding a ny other provision of this Subchapter, no person suing on behalf of the general public shall recover statutory damages based upon a violation of this Subchapter if a previous claim brought on behalf of the general public by another person for statutory dam ages and based upon the same viola tion has been adjudicated, whether or not the person bringing the subsequent claim was a party to the prior adjudication.
2. Exemplary damages, where it is proven by clear and convincing evidence that the defendant is guilty of oppression, fraud, malice, retaliation, or a conscious disregard for the public health.
3. The person may also bring a civil action to enforce this Chapter by way of a conditional judgment or an injunction. Upon proof of a violation, a court shall issue a conditional judgment or an injunction.
E. Notwithstanding any legal or equitable bar against a person seeking relief on its own behalf, a person may bring an action to enforce this Subchapter solely on behalf of the general public. When a person brings an action solely on beha lf of the general public, nothing about such an action shall act to preclude or bar the person from bringing a subsequent action based upon the same facts but seeking relief on his, her or its own behalf.
F. Nothing in this Subchapter prohibits a person from bringing a civil action in small claims court to enforce this Subchapter, so long as the amount in demand and the type of relief sought are within the jurisdictional requirements of that court.
§ 11.33.035 NO WAIVER OF RIGHTS.
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31 Except as otherwise provided for in this Chapter, a ny waiver by a Healthcare Worker of any or all of the provisions of this Chapter or of rights or protections afforded under the authority of this Chapter shall be deemed contrary to public policy and shall be void and unenforceable.
§ 11.33.040 COEXISTENCE WITH OTHER AVAILABLE RELIEF.
The provisions of this Chapter shall not be construed as limiting any Healthcare Worker’s right to obtain relief to which the Healthcare Worker may be entitled at law or in equity.
§ 11.33.045 ONE-YEAR COURT-GRANTED WAIVER.
This Chapter is not intended to cause reduction in employment or work hours for Healthcare Workers. Therefore, a court may grant a one -year waiver from the Minimum Wage requirements of this Chapter if an Employer can demonstrate by substantial evidence that compliance with this Chapter would raise substantial doubt about Employe r’s ability to continue as a going concern under generally accepted accounting standards. The evidence must include documentation of the Employer’s financial condition, as well as the condition of any parent or affiliated entity, and evidence of the actual or potential direct financial impact of compliance with this Cha pter. A one-year waiver granted by a court pursuan t to this Section does not exempt an Employer from complying with any and all federal, state, or local laws and regulations, including any other applicable federal, state, or local minimum wage requirement.
§ 11.33.050 SUPERCESSION BY COLLECTIVE BARGAINING AGREEMENT.
The provisions of this Chapter, or any part thereof, may be waived in a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in such agreement in clear an d unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute or be permitted as a waiver of all or any part of the provisions of this Chapter.
§ 11.33.055 CONFLICTS.
Nothing in this Chapter shall be int erpreted or applied so as to create any power or duty in conflict with any federal or state law.
SECTION 3: This Ordinance is adopted pursuant to the powers vested in the City of Culver City under the law s and Constitution of the State of California and the City Charter, including but not limited to, the police powers vested in the City
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31 pursuant to Article XI, Section 7 of the California Constitution and Section 1205(b) of the California Labor Law.
SECTION 4: Pursuant to Section 619 of the City Charter, this Ordinance shall take effect thirty (30) days after its adoption. Pursuant to Section 616 and 621 of the City Charter, prior to the expiration of fifteen (15) days after the adoption, the City Clerk shall cause this Ordinance, or a summary thereof, t o be published in the Culver City News and shall post this Ordinance or a summary thereof in at least three (3) places within the City.
SECTION 5 : City Council hereby d eclares that, if any provision, section, subsection, paragraph, sentence, phrase or wor d of this Ordinance is rendered or declared invalid or unconstitutional by any final action in a cou rt of competent jurisdiction or by reason or any preemptive legislati on, then the City Council would have independently adopted the remaining provisions, se ctions, subsections, paragraphs, sentences, phrases, or words of this Ordinance , and as such they shall remain in full force and effect.
APPROVED and ADOPTED this day of 2022.
Dr. Daniel Lee, Mayor
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
Jeremy Bocchino Heather S. Baker
City Clerk City Attorney