“Delivering Outstanding Services” Wage Theft Ordinance Amendment 1-Licenses and Permitting Community Informational Meetings October 5-October 12, Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” OBJECTIVE Identify for discussion purposes the frame work for amending the Wage Theft Ordinance to address the issuance or renewal of a City permit or license. Key Considerations are as follows: Identify and define key terms of the proposed amendment;Identify and define key terms of the proposed amendment; Identify those businesses which may be impacted by the proposed amendment;Identify those businesses which may be impacted by the proposed amendment; Sanctions and Penalties-City Permits and Licenses; andSanctions and Penalties-City Permits and Licenses; and Licenses and Permits-Appeals ProcessLicenses and Permits-Appeals Process 2 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” KEY DEFINITIONS Wage Theft adjudication - occur when one or more of the following occur:Wage Theft adjudication - occur when one or more of the following occur: 1.Employer is criminally convicted as an employer pursuant to Section of the Texas Labor Code for failure to pay wages; or 2.Injunctive relief is granted in district court under Section of the Texas Labor Code against the employer for repeated failures to pay wages as required by Chapter 61 of the Texas Labor Code; or 3.A wage payment determination order becomes final under Section or Section of Texas Labor Code; or 4.The Texas Workforce Commission assesses an administrative penalty under Section of the Texas Labor Code against the employer for acting in bad faith in not paying wages as required by Chapter 61 of Texas Labor Code; or 5.Employer is convicted for Theft of Services under Section of the Texas Penal Code; or 6.Court of competent jurisdiction finds that an employer has engaged in wage theft. 3 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” KEY DEFINITIONS continued Employee - An individual which is employed by an employer for compensation. The term does not include:Employee - An individual which is employed by an employer for compensation. The term does not include: A.A person related to the employer or the employer’s spouse with the first or second degree by consanguinity or affinity, as determined under Chapter 573, Government Code; or B.An independent contractor. EmployerA person who: Employer - A person who: A.Employs one or more employees; B.Acts directly or indirectly in the interest of an employer in relation to an employee. Wages - Compensation owed by an employer for labor or services rendered by an employee, whether computed on a time, task piece, commission or other basis. Wages - Compensation owed by an employer for labor or services rendered by an employee, whether computed on a time, task piece, commission or other basis. 4 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” KEY DEFINITIONS (continued) KEY DEFINITIONS (continued) Wage Theft Adjudication Database Identity of Employer Identity of Employer An employer operating as a business entity shall be listed by its corporate name, address and type of business organization. If the employer is an individual, the person’s name, business address, type of business occupation shall be included. Removal From Database Removal From Database An employer shall be removed from the database if: A.A Wage Theft Adjudication has been annulled, withdrawn, overturned, rescinded or abrogated, and such facts has been confirmed by the Wage Theft Coordinator; or B.Five (5) years or more has elapsed since the date of the employer’s most recent Wage Theft Adjudication. 5 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” PERMITS AND LICENSES The proposed amendment would be applicable to businesses applying for the following permits and/or licenses: Food and Food handling Establishments License§ Food and Food handling Establishments License§ LaundriesLicense § LaundriesLicense § Dealers in Secondhand GoodsLicense § Dealers in Secondhand GoodsLicense § Vendors and SolicitorsLicense§ Vendors and SolicitorsLicense§ Flea Market Operator Permits § Flea Market Operator Permits § Contractors and Licensing Registration § Contractors and Licensing Registration § Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” SANCTIONS AND PENALTIES In the event the City becomes aware that an Applicant for the issuance or renewal of the City permits or licenses identified in Section B has been adjudicated for wage theft and the permit or license is related to the Applicant’s business activity the City may deny the application for a period of five (5) years from the wage theft adjudication judgment date. A license or permit may be denied by the Permit or License Official after substantiating that an Applicant for the identified permits or licenses has a Wage Theft Adjudication record or is included in of the Wage Theft Adjudication Database. 7 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” SANCTIONS AND PENALTIES continued Prior to the denial of the issuance or renewal of a license and permit, the City will provide Employer with thirty (30) days’ notice and opportunity to provide full proof of payment of outstanding wage theft adjudication. Permit Officials, License Officials, or Wage Theft Coordinator shall be under no obligation to revoke permits or licenses approved prior to the knowledge of an Applicant’s Wage Theft Adjudication record or inclusion of the Wage Theft Adjudication Database. 8 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” LICENSES AND PERMITS APPEALS PROCESS An Applicant who has been denied a permit or license by a Permit or License Official due to the wage theft adjudication record of an Applicant or inclusion of Applicants name in the Wage Theft Database may appeal to the Wage Theft Coordinator by submitting an appeal in writing within fifteen (15) working days of the denial. 9 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department

“Delivering Outstanding Services” LICENSES AND PERMITS APPEALS PROCESS continued The Wage Theft Coordinator shall review the Applicant’s written appeal. The Wage Theft Coordinator may grant the Appeal if the Applicant shows evidence of the following: 1.A Wage Theft Adjudication has been annulled, withdrawn, overturned, rescinded or abrogated, and such fact has been confirmed by the Wage Theft Coordinator; or 2.Employer provided proof of full payment of outstanding wage theft adjudication judgment; 3.Five (5) years or more has elapsed since the date of the employer’s most recent Wage Theft Adjudication. The Wage Theft Coordinator shall make ruling on the appeal writing fifteen (15) working days. The decision of the Wage Theft Coordinator is final. 10 Presented by the City Attorney Office and Purchasing & Strategic Sourcing Department