04-20-2021 Hazard Pay (10)City of Federal Way Hazard Pay Discussion
CITY OF
Federal Way
Federal Way City Council Special
April 20, 2021
04V OF
Meeting
Hazard Pay
- What other Council's have done -
Auburn:
On March 15, Mayor Nancy Backus directed Deputy Mayor Claude DaCorsi to
form an ad -hoc committee composed of himself and two other council members
to do some research into that topic and bring their findings back to the full council
at a near -future study session.
04V OF
Burien:
Council adopted an updated ordinance that requires grocery workers be paid $5
per hour hazard pay during the pandemic. Burien City Council passed a previous
version of this ordinance during their February 1 meeting. Council voted to
rescind the previous version of the ordinance in favor of the new ordinance. The
new ordinance applies to grocery businesses that have 250 or more employees
worldwide and are primarily engaged in selling groceries. It does not apply to
convenience stores, food marts, or farmers markets. Employees are defined as
hourly workers employed by a grocery business and are unable to work remotely.
• It is estimated that approximately 600-700 employees benefit from this new
ordinance. The new law went into effect February 17, 2021 and remains in effect
as long as Governor's Inslee's state of emergency declaration is in effect
04V OF
King County:
On Tuesday, March 9, the King County Council approved a proposal that added a
$4-per-hour hazard pay for employees at large grocery stores in unincorporated
King County. Effective on March 22, the legislation will be reviewed 90 days after
enactment and may choose to repeal all or part of the ordinance. If the Council
does not act to repeal, it would expire upon the termination of the COVID-19
emergency declared by Executive Dow Constantine. The legislation applies to
stores over 10,000 square feet that mostly sell groceries, or at retail stores over
85,000 square feet where at least 30% of the store is used to sell groceries.
The employers must employ at least 500 workers worldwide, with at least one
employee working at a store in unincorporated King County. It does not apply to
people who work at convenience stores or in farmers markets. Exempt
businesses include those in areas without many fresh food options that are at
least two miles from a grocery store that would be required to provide the hazard
pay. Also Exempt are independent owner -operator stores with four or fewer
open stores that employ fewer than 25 workers at the location and
p ndently owned stores in areas that are "historically underserved" would
be exempt. 4
Seattle:
On February 3rd, 2021, the Office of Labor Standards (OLS) announced Seattle's
new temporary Grocery Employee Hazard Pay Ordinance. The rights granted by
this temporary law will remain effective through the COVID-19 civil emergency.
The Grocery Employee Hazard Pay Ordinance requires grocery businesses in
Seattle to pay hazard pay of $4 per hour to their employees during the COVID-19
emergency.
Grocery businesses are retail stores that are either: Over 10,000 square feet in
size and primarily engaged in retailing groceries for offsite consumption; or Over
85,000 square feet, with 30 percent or more of its sales floor area dedicated to
sale of groceries.
To be covered by this law, the employer must employ more than 500 employees
worldwide. The ordinance would not impact convenience stores or food marts
primarily selling a limited line of goods.
Ci04V OF
MOTU Way
Seattle continued...
Grocery businesses must provide their employees with hazard pay on established,
regular pay day on which wages are paid, and are prohibited from taking steps to
reduce employee compensation because of this ordinance. Within 30 days of the
effective date of this ordinance, grocery businesses must display a written notice of
rights for this ordinance at their stores.
04V OF
Currently paying their employees hazard pay:
Employees at Costco currently receive $2.00 an hour in hazard pay.
Trader Joes pays their grocery workers $4.00 an hour in hazard pay.
AV`i/ MUM
ES"E■ i
ciO4V OF
MOTU Way
TRADER JOE"S (B
Source: NW Grocery Association
So, who is covered?
As you have seen in this presentation, other Council's have passed hazard pay
covering grocery workers in the larger chains.
While the intention behind enacting these ordinances appears to be to help essential
grocery workers, many workers in the industry are left out do to the size cutoff, as
well as the potential financial hardship in small businesses.
A few policy questions may be:
How do we do we benefit those impacted by the risks associated with their
essential work, but are not covered by the type of ordinance's currently passed in
our region?
How do help workers at the smaller chains, without adversely impacting their
employers?
ciO4V OF
WON way
Request from the grocers
At a minimum the NW Grocery Association asks the Council to consider the following
to any proposed ordinance language to lessen the impact to your neighborhood
stores:
Limit the ordinance to 90 days, which would align with the Governor's vaccination
schedule for grocery workers
Limit the ordinance to workers within the business, and NOT include mobile
employees like delivery drivers or executive staff
Expand the definition of employee to include all forms of retail, not just grocery
workers. As other businesses were expected to remain open just like grocery
stores, their employees should be recognized under the same definition
Set a hard start date and time certain to clarify for employers when exactly to pay
the higher, ordered wage amount
• Lower the dollar amount to a reasonable level as opposed to an arbitrary number
of $4
04V OF
Ideas for Federal Way
Enact $2.50 to $3.00 pay similar to other
municipalities, but with some notable
adjustment.
Expand hazard pay to all retailers that have at `
least 25% of their business as grocery and have at :..:
least 250 employees. •
Using American Rescue Plan Act funds, create a
grant for businesses that have 25% or more of
their business as grocery, with under 250
employees to apply for hazard pay funding for
their grocery workers.
Hazard pay would be for an initial 90 day period
with a Council review after 60 days.
For]RFMPloyers already paying verifiable hazard
pay, ib'additi n I hazard pay would be required.
ed 10
Hazard Pay
Questions and Discussion
04V OF