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PROPOSED ORDINANCE
AN ORDINANCE CREATING A MINIMUM WAGE IN COOK COUNTY
WHEREAS, Cook County, Illinois is a home-rule unit of government under Article VII, Section 6(a) of the 1970 Constitution of the State of Illinois and, as such, may regulate for the protection of the public welfare; and
WHEREAS, Promoting the welfare of those who work within the County's borders is an endeavor that plainly meets this criterion; and
WHEREAS, Enacting a minimum wage for workers in Cook County that exceeds the state minimum wage is entirely consistent with the Illinois General Assembly's finding that it "is against public policy for an employer to pay to his employees an amount less than that fixed by" the Illinois Minimum Wage Law, 820 ILCS 105/2; and
NOW, THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 42 - Human Relations, Article I. - In General, Division 2, Cook County Minimum Wage Ordinance, Sections 42-7 - 42-19 are hereby enacted as follows:
Sec. 42-7 - Short Title.
This Division shall be known and may be cited as the Cook County Minimum Wage Ordinance.
Sec. 42-8 - Definitions.
For purposes of this Division, the following definitions apply:
“Covered Employee” means any Employee who is not subject to any of the exclusions set out in Section 42-12 below, and who, in any particular two-week period, performs at least two hours of work for an Employer while physically present within the geographic boundaries of Cook County. For purposes of this definition, time spent traveling in Cook County that is compensated time, including, but not limited to, deliveries, sales calls, and travel related to other business activity taking place within Cook County, shall constitute work while physically present within the geographic boundaries of Cook County; however, time spent traveling in Cook County that is uncompensated commuting time shall not constitute work while physically present within the geographic boundaries of Cook County.
“CPI” means the Consumer Price Index for All Urban Consumers most recently published by the Bureau of Labor Statistics of the United States Department of Labor.
“Director” means the Executive Director of the Cook County Commission on Human Rights.
“Domestic worker” means a person whose primary duties include housekeeping; house cleaning; home management; nanny services, including childcare and child monitoring; caregiving, personal care or home health services for elderly persons or persons with illnesses, injuries, or disabilities who require assistance in caring for themselves; laundering; cooking; companion services; chauffeuring; and other household services to members of households or their guests in or about a private home or residence, or any other location where the domestic work is performed.
“Employee”, “Gratuities”, and “Occupation” have the meanings ascribed to those terms in the Minimum Wage Law, with the exception that all Domestic Workers, including Domestic Workers employed by Employers with fewer than 4 employees, shall fall under the definition of the term “Employee”.
“Employer” means any individual, partnership, association, corporation, limited liability company, business trust, or any person or group of persons that gainfully employs at least one Covered Employee. To qualify as an Employer, such individual, group, or entity must (1) maintain a business facility within the geographic boundaries of Cook County and/or (2) be subject to one or more of the license requirements in Chapter 54 of this Code.
“Fair Labor Standards Act” means the United States Fair Labor Standards Act of 1938, 29 USC § 201 et seq., in force on the effective date of this chapter and as thereafter amended.
“Minimum Wage Law” means the Illinois Minimum Wage Law, 820 ILCS 105/1 et seq., in force on the effective date of this chapter and as thereafter amended.
“Subsidized Temporary Youth Employment Program” means any publicly subsidized summer or other temporary youth employment program through which persons aged 24 or younger are employed by, or engaged in employment coordinated by, a nonprofit organization or governmental entity.
“Subsidized Transitional Employment Program” means any publicly subsidized temporary employment program through which persons with unsuccessful employment histories and/or members of statistically hard-to-employ populations (such as formerly homeless persons, the long-term unemployed, and formerly incarcerated persons) are provided temporary paid employment and case-managed services under a program administered by a nonprofit organization or governmental entity, with the goal of transitioning program participants into unsubsidized employment.
“Tipped Employee” has the meaning ascribed that term in the Fair Labor Standards Act.
“Wage” means compensation due an Employee by reason of his employment.
Sec. 42-9 - Minimum Hourly Wage.
Except as provided in Sections 42-10 of this Code, every Employer shall pay no less than the following Wages to each Covered Employee for each hour of work performed for that Employer while physically present within the geographic boundaries of Cook County:
(a) Beginning on July 1, 2017, the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) $10.00 per hour.
(b) Beginning on July 1, 2018, the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) $11.00 per hour.
(c) Beginning on July 1, 2019, the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) $12.00 per hour.
(d) Beginning on July 1, 2020, the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) $13.00 per hour.
(e) Beginning on July 1, 2021, and on every July 1 thereafter, the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) Cook County’s minimum hourly Wage from the previous year, increased in proportion to the increase, if any, in the CPI, provided, however, that if the CPI increases by more than 2.5 percent in any year, the Cook County minimum Wage increase shall be capped at 2.5 percent, and that there shall be no Cook County minimum Wage increase in any year when the unemployment rate in Cook County for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. Any increase pursuant to subsection 42-9(e) shall be rounded up to the nearest multiple of $0.05. Any increase pursuant to subsection 42-9(e) shall remain in effect until any subsequent adjustment is made. On or before June 1, 2021, and on or before every June 1 thereafter, the Director shall make available to Employers a bulletin announcing the adjusted minimum hourly Wage for the upcoming year.
Sec. 42-10 - Minimum hourly wage in occupations receiving gratuities.
(a) Every Employer of a Covered Employee engaged in an Occupation in which Gratuities have customarily and usually constituted part of the remuneration shall pay no less than the following Wage to each Covered Employee for each hour of work performed for that Employer while physically present within the geographic boundaries of the County:
(1) Beginning on July 1, 2017, the greater of: (A) the minimum hourly Wage set by the Fair Labor Standards Act for Tipped Employees; or (B) the minimum hourly Wage set by the Minimum Wage Law for workers who receive Gratuities.
(2) Beginning on July 1, 2018, and on every July 1 thereafter, the greater of (A) the minimum hourly Wage set by the Fair Labor Standards Act for tipped workers; (B) the minimum hourly Wage set by the Minimum Wage Law for workers who receive Gratuities; or (C) Cook County’s minimum hourly Wage from the previous year for workers who receive Gratuities, increased in proportion to the increase, if any, in the CPI, provided, however, that if the CPI increases by more than 2.5 percent in any year, the Cook County minimum Wage increase for workers who receive Gratuities shall be capped at 2.5 percent, and that there shall be no Cook County minimum Wage increase for workers who receive Gratuities in any year when the unemployment rate in Cook County for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. Any increase pursuant to subsection 42-10 (a)(3)(C) shall be rounded up to the nearest multiple of $0.05. Any increase pursuant to subsection 42-10 (a)(3) shall remain in effect until any subsequent adjustment is made. On or before June 1, 2018, and on or before every June 1 thereafter, the Director shall make available to Employers a bulletin announcing Cook County’s minimum hourly Wage for the upcoming year for workers who receive Gratuities.
(b) Each Employer that pays a Covered Employee the Wage described in subsection 42-10 (a) shall transmit to the Director, in a manner provided by regulation, substantial evidence establishing: (1) the amount the Covered Employee received as Gratuities during the relevant pay period; and (2) that no part of that amount was returned to the Employer. If an Employer is required by the Minimum Wage Law to provide substantially similar data to the Illinois Department of Labor, the Director may allow the Employer to comply with this subsection 42-10 (b) by filing a copy of the state documentation.
Sec. 42-11 - Overtime compensation.
The Wages set out in Sections 42-9 and 42-10 are subject to the overtime compensation provisions in the Minimum Wage Law, with the exception that the definitions of “Employer” and “Employee” in this chapter shall apply.
Sec. 42-12 - Exclusions.
This chapter shall not apply to hours worked:
(a) By any person subject to subsection 4(a)(2) of the Minimum Wage Law, with the exception that the categories of Employees described in subsections 4(a)(2)(A) and 4(a)(2)(B) of the Minimum Wage Law shall be entitled to the Wages described in Sections 42-9 and 42-10 , whichever applies, as well as the overtime compensation described in Section 42-11;
(b) By any person subject to subsection 4(a)(3), subsection 4(d), subsection 4(e), Section 5, or Section 6 of the Minimum Wage Law;
(c) For any governmental entity other than the Cook County, a category that, for purposes of this chapter, includes, but is not limited to, any unit of local government, the Illinois state government, and the government of the United States, as well as any other federal, state, or local governmental agency or department;
(d) For any Subsidized Temporary Youth Employment Program; or
(e) For any Subsidized Transitional Employment Program.
Sec. 42-13 - Applications to Collective Bargaining Agreements.
Nothing in this chapter shall be deemed to interfere with, impede, or in any way diminish the right of employees to bargain collectively with their employers through representatives of their own choosing in order to establish wages or other conditions of work in excess of the applicable minimum standards of the provisions of this chapter. The requirements of this chapter may be waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms.
Sec. 42-14 - Applications to the Cook County Living Wage Ordinance for Procurements.
Nothing in this chapter shall be deemed conflict with Article IV, Division 3 of the Cook County Code. All Contractors must comply with the Wage Requirements set forth in Article IV, Division 3, even if the wages required to be paid are higher than those set forth within this chapter.
Sec. 42-15 - Notice and Posting.
(a) Every Employer shall post in a conspicuous place at each facility where any Covered Employee works that is located within the geographic boundaries of Cook County a notice advising the Covered Employee of the current minimum Wages under this chapter, and of his rights under this chapter. The Director shall prepare and make available a form notice that satisfies the requirements of this subsection 42-14 (a). Employers that do not maintain a business facility within the geographic boundaries of Cook County and households that serve as the worksites for Domestic Workers are exempt from this subsection 42-14(a).
(b) Every Employer shall provide with the first paycheck subject to this chapter issued to a Covered Employee a notice advising the Covered Employee of the current minimum Wages under this chapter, and of the Employee’s rights under this chapter. The Director shall prepare and make available a form notice that satisfies the requirements of this subsection 42-14(b).
Sec. 42-16 - Retaliation Prohibited.
It shall be unlawful for any Employer to discriminate in any manner or take any adverse action against any Covered Employee in retaliation for exercising any right under this chapter, including, but not limited to, disclosing, reporting, or testifying about any violation of this chapter or regulations promulgated thereunder. For purposes of this Section, prohibited adverse actions include, but are not limited to, unjustified termination, unjustified denial of promotion, unjustified negative evaluations, punitive schedule changes, punitive decreases in the desirability of work assignments, and other acts of harassment shown to be linked to such exercise of rights.
Sec. 42-17 - Enforcement - Regulations.
The Cook County Commission on Human Rights shall enforce this chapter, and the Director is authorized to adopt regulations for the proper administration and enforcement of its provisions.
Sec. 42-18 - Violation - Penalty.
Any Employer who violates this chapter or any regulation promulgated thereunder shall be subject to a fine of not less than $500.00 nor more than $1,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense to which a separate fine shall apply.
Sec. 42-19 - Private Cause of Action.
If any Covered Employee is paid by his Employer less than the Wage to which he is entitled under this chapter, the Covered Employee may recover in a civil action three times the amount of any such underpayment, together with costs and such reasonable attorney’s fees as the court allows. An agreement by the Covered Employee to work for less than the Wage required under this chapter is no defense to such action.
THEREFORE, BE IT FURTHER ORDAINED, by the Cook County Board of Commissioners, that Chapter 34, Finance, Article IV, Procurement, Division 4, Disqualifications and Penalties, Section 34-179 shall be amended as follows:
Sec. 34-179. - Disqualification due to violation of laws related to the payment of wages and Employer Paid Sick Leave Ordinance.
(a) A Person including a Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) who has admitted guilt or liability or has been adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation of the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq., Illinois Minimum Wage Act, 820 ILCS 105/1 et seq., the Illinois Worker Adjustment and Retraining Notification Act, 820 ILCS 65/1 et seq., the Employee Classification Act, 820 ILCS 185/1 et seq., the Fair Labor Standards Act of 1938, 29 U.S.C. 201, et seq., or any comparable state statute or regulation of any state, which governs the payment of wages shall be ineligible to enter into a Contract with the County for a period of five years from the date of conviction, entry of a plea, administrative finding or admission of guilt.
(b) A person including a Substantial Owner who has admitted guilt or liability or has been adjudicated guilty or liable in any judicial or administrative proceeding of violating the Cook County Minimum Wage Ordinance (Section 42-7 - 42-15 of the Cook County Code) shall be ineligible to enter into a Contract with the County for a period of five years from the date of conviction, entry of a plea, administrative finding or admission of guilt.
(c) The CPO shall obtain an affidavit or certification from every Person or Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) from whom the County seeks to make a Contract with certifying that the Person seeking to do business with the County including its Substantial Owners (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) has not violated the statutory provisions identified in Subsection (a) and or (b) of this Section.
(d) For Contracts entered into following the effective date of this Ordinance, if the County becomes aware that a Person including Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) under contract with the County is in violation of Subsection (a) or (b) of this Section, then, after notice from the County, any such violation(s) shall constitute a default under the Contract.
(e) If a Person including a Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) is ineligible to contract with the County due to the provisions of Subsection (a) or (b) of this Section, the Person seeking the Contract may submit a request for a reduction or waiver of the ineligibility period to the CPO. The request shall be in writing in a manner and form prescribed by the CPO and shall include one or more of the following actions have been taken:
(1) There has been a bona fide change in ownership or Control of the ineligible Person or Substantial Owner;
(2) Disciplinary action has been taken against the individual(s) responsible for the acts giving rise to the violation;
(3) Remedial action has been taken to prevent a recurrence of the acts giving rise to the disqualification or default; or
(4) Other factors that the Person or Substantial Owner believe are relevant.
The CPO shall review the documentation submitted, make any inquiries deemed necessary, request additional documentation where warranted and determine whether a reduction or waiver is appropriate. Should the CPO determine that a reduction or waiver of the ineligibility period is appropriate; the CPO shall submit its decision and findings to the County Board.
(f) A Using Agency may request an exception to such period of ineligibility by submitting a written request to the CPO, supported by facts that establish that it is in the best interests of the County that the Contract be made from such ineligible Person. The CPO shall review the documentation, make any inquiries deemed necessary, and determine whether the request should be approved. If an exception is granted, such exception shall apply to that Contract only and the period of ineligibility shall continue for its full term as to any other Contract. Said exceptions granted by the CPO shall be communicated to the County Board.
THEREFORE, BE IT FURTHER ORDAINED, by the Cook County Board of Commissioners, that Chapter 74, Taxation, Article 2, Real Property Taxation, Division 2, Classification System for Assessment, Section 74-74 are hereby amended as follows:
Sec. 74-74- Laws Regulating the Payment of Wages and Employer Paid Sick Leave
(a) Except where a Person has requested an exception from the Assessor and the County Board expressly finds that granting the exception is in the best interest of the County, such Person including any Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) shall be ineligible to receive any property tax incentive noted in Division 2 of this Article if, during the five year period prior to the date of the application, such Person or Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367 of the Cook County Code) admitted guilt or liability or has been adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation of the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq., the Illinois Minimum Wage Act, 820 ILCS 105/1 et seq., the Illinois Worker Adjustment and Retraining Notification Act, 820 ILCS 65/1 et seq., the Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101 et seq., the Employee Classification Act, 820 ILCS 185/1 et. seq., the Fair Labor Standards Act of 1938, 29 U.S.C. 201, et seq., or any comparable state statute or regulation of any state, which governs the payment of wages.
(b) The Assessor shall obtain an affidavit or certification from every Person and Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367of the Cook County Code) who seeks a property tax incentive from the County as noted in Division 2 of this Article certifying that the Person or Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367of the Cook County Code) has not violated the statutory provisions identified in Subsection (a) of this Section.
(c) If the County or Assessor becomes aware that a Person or Substantial Owner (as defined in Part I, Chapter 34, Article V, Section 34-367of the Cook County Code) has admitted guilt or liability or has been adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation of the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq., the Illinois Minimum Wage Act, 820 ILCS 105/1 et seq., the Illinois Worker Adjustment and Retraining Notification Act, 820 ILCS 65/1 et seq., the Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101 et seq., the Employee Classification Act, 820 ILCS 185/1 et. seq., the Fair Labor Standards Act of 1938, 29 U.S.C. 201, et seq., or any comparable state statute or regulation of any state, which governs the payment of wages during the five year period prior to the date of the application, but after the County has reclassified the Person’s or Substantial Owner’s (as defined in Part I, Chapter 34, Article V, Section 34-367of the Cook County Code) subject property under a property tax incentive classification, then, after notice from the Assessor of such violation, the Person or Substantial Owner shall have 45 days to cure its violation and request an exception or waiver from the Assessor. Failure to cure or obtain an exception or waiver of ineligibility from the Assessor shall serve as grounds for revocation of the classification as provided by the Assessor or by the County Board by Resolution or Ordinance. In case of revocation or cancellation, the Incentive Classification shall be deemed null and void for the tax year in which the incentive was revoked or cancelled as to the subject property. In such an instance, the taxpayer shall be liable for and shall reimburse to the County Collector an amount equal to the difference in the amount of taxes that would have been collected had the subject property not received the property tax incentive.
(d) The Assessor shall obtain an affidavit or certification from every Person and Substantial Owner who seeks a property tax incentive from the County that the applicant pays a Wage as defined in Section 42-8 to its employees in accordance with Sections 42-7 through 42-15 of the Cook County Code.
THEREFORE BE IT FURTHER ORDAINED, by the Cook County Board of Commissioners, that Chapter 54, Licenses, Permits and Miscellaneous Business Regulations, Article X, General Business Licenses, Section 54-384 and Section 54-390 are hereby amended as follows:
Sec. 54-384. - License application.
All applications for a General Business License shall be made in writing and under oath to the Director of Revenue on a form provided for that purpose.
(a) Every application for a County General Business License shall be submitted and signed by the Person doing business or authorized representative of the Person doing business and shall contain the following:
(1) Name of the applicant.
(2) Business address.
(3) Social security numbers, Tax ID number, and residence addresses of its sole proprietor or the three individuals who own the highest percentage interests in such Person and any other individual who owns five percent or more interest therein.
(4) Pin number of the property or properties where the business is being operated.
(5) A brief description of the business operations plan.
(6) Sales tax allocation code. The sales tax allocation code identifies a specific sales tax geographic area and is used by the State of Illinois for sales tax allocation purposes.
(7) Certification that applicant is in compliance with all applicable County Ordinances.
(8) For Business Licenses applied for or renewed following the effective date of this provision, certification that the applicant has not, during the five-year period prior to the date of the application for a Business License, admitted guilt or liability or has been adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation of the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq., the Illinois Minimum Wage Act, 820 ILCS 105/1 et seq., the Illinois Worker Adjustment and Retraining Notification Act, 820 ILCS 65/1 et seq., the Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101 et seq., the Employee Classification Act, 820 ILCS 185/1 et. seq., the Fair Labor Standards Act of 1938, 29 U.S.C. 201, et seq., or any comparable state statute or regulation of any state, which governs the payment of wages.
(9) Certification that the applicant pays a Wage as defined in Section 42-8 to its employees that conforms with Sections 42-7 - 42-15 of the Cook County Code
(b) The Director of Revenue shall be the custodian of all applications for licenses which [sic] under provisions of this Code. All information received by the Department from applications filed pursuant to this article or from any investigations conducted pursuant to this article, except for official County purposes, or as required by the Freedom of Information Act, shall be confidential.
(c) The General Business License applicant may be subject to an inspection by the following county departments including, but not limited to, Health, Building and Zoning and the Environment, prior to licensing.
(d) It shall be grounds for denial and/or revocation of any license issued under the provisions of this article whenever the license applicant knowingly includes false or incomplete information in the license application or is in violation of a County Ordinance.
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Sec. 54-390. - Failure to comply-Code of Ordinances.
(a) Failure to comply with applicable Cook County Code of Ordinances may result in general business license suspension or revocation.
(b) Persons doing business in unincorporated Cook County must comply with this article and, including but not limited to, the following Cook County Code of Ordinances:
(1) Chapter 30, Environment; or
(2) Chapter 38, Article III, Public Health and Private Nuisances; or
(3) Chapter 58: Article III, Offenses involving Public Safety, and Article IV, Offenses Involving Public Morals; or
(4) The Cook County Building Ordinance, adopted originally on March 11, 1949, as amended, and/or the Cook County Building Code; or
(5) Chapter 74 Taxation; or
(6) The Cook County Zoning Ordinance, as amended; or
(7) Chapter 42 Human Relations.
Effective Date: This Ordinance shall take effect immediately upon passage.
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