Sec. 27-64. Definitions.

   (a)   As used in this Article:

      Awarding authority means any person that awards or enters into a service contract or subcontract with a contractor to be performed in the County. Awarding authority includes the County, but does not include a Federal, State, or municipal government, or a common ownership community, as defined in Section 10B-2(b).

      Contractor means any person, including a subcontractor, which enters into a service contract to be performed in the County and employs more than 20 service employees in the entire company.

      Director means the Executive Director of the Office of Human Rights and includes the Executive Director’s designee.

      Person means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity that may employ persons or enter into a service contract.

      Service contract means a contract between an awarding authority and a contractor to provide security, janitorial, building maintenance, food preparation, or non-professional health care services in a facility located in the County which is used as a:

      (1)   private school;

      (2)   hospital, nursing care facility, or other health care provider;

      (3)   institution, such as a museum, convention center, arena, airport, or music hall;

      (4)   multi-family residential building or complex with more than 30 units; or

      (5)   commercial building or office building occupying more than 75,000 square feet.

      Service contract also includes a contract awarded by the County for residential solid waste, recycling, or yard waste collection and disposal.

      Service employee means an individual employed on a full or part-time basis by a contractor as a:

      (1)   building service employee, including a janitor, security officer, groundskeeper, door staff, maintenance technician, handyman, superintendent, elevator operator, window cleaner, or building engineer;

      (2)   food service worker, including a cafeteria attendant, line attendant, cook, butcher, baker, server, cashier, catering worker, dining attendant, dishwasher, or merchandise vendor;

      (3)   non-professional employee performing health care or related service; or

      (4)   a driver, helper, or mechanic performing services on a County contract for residential solid waste, recycling, or yard waste collection and disposal.

      Service employee does not include:

      (1)   a managerial or confidential employee;

      (2)   an employee who works in an executive, administrative, or professional capacity;

      (3)   an employee who earns more than $30 per hour; or

      (4)   an employee who is regularly scheduled to work less than 10 hours per week.

      Successor contractor means a contractor that:

      (1)   is awarded a service contract to provide, in whole or in part, services that are substantially similar to those provided at any time during the previous 90 days;

      (2)   has purchased or acquired control of a property located in the County where service employees were employed at any time during the previous 90 days; or

      (3)   terminates a service contract and hires service employees as its direct employees to perform services that are substantially similar, within 90 days after a service contract is terminated or cancelled.

   (b)   This Article does not limit the ability of an awarding authority to terminate a service contract or replace a contractor with another contractor. (2012 L.M.C., ch. 18, § 1; 2018 L.M.C., ch. 29, §1; 2019 L.M.C., ch. 23, §1.)

Sec. 27-65. Transition employment period.

   (a)   Awarding authority. At least 15 days before a service contract is terminated, an awarding authority must:

      (1)   request the terminated contractor to give the successor contractor a complete list of the name, date of hire, and job classification of each service employee working on the service contract;

      (2)   give the successor contractor a complete list of the name, date of hire, and job classification of each service employee of the terminated contractor working on the service contract;

      (3)   notify the collective bargaining representative, if any, of the affected service employees of the pending termination of the service contract; and

      (4)   ensure that the terminated contractor conspicuously posts, at any affected work site, a written notice to all affected service employees describing the pending termination of the service contract and the employee rights provided by this Article.

      (5)   Where the County is the awarding authority in this Section:

         (A)   terminated or cancelled means a termination for default, termination for convenience, or mutual termination as defined in Chapter 11B and the County procurement regulations; and

         (B)   this Section does not apply to a County service contract awarded by an emergency procurement or direct purchase as defined in Chapter 11B and the County procurement regulations.

   (b)   Successor contractor.

      (1)   Subject to paragraphs (3) and (4), each successor contractor must offer to retain each affected service employee at an affected site for 90 days or until the successor contract is terminated, whichever is earlier.

      (2)   Each successor contractor must give each affected service employee a written offer of employment for the 90 day transition period and send a copy to the employee’s collective bargaining representative, if any. Each offer must:

         (A)   state the date by which the service employee must accept the offer; and

         (B)   allow the employee at least 10 days after receiving the notice to accept the offer.

      (3)   Each successor contractor may:

         (A)   offer employment to less than all of the affected service employees during the 90 day transition period if the successor contractor:

            (i)   finds that fewer service employees are required to perform the work than the terminated contractor had employed;

            (ii)   maintains a preferential hiring list of those employees not retained; and

            (iii)   hires any additional service employees from the list until all affected service employees have been offered employment; and

         (B)   refuse to retain a service employee who fails a pre-employment ineligibility test administered by the successor contractor if the successor contractor:

            (i)   routinely requires all service employees to undergo the ineligibility test as a condition of employment; and

            (ii)   adopted the ineligibility test as part of a written employment policy prior to bidding on the successor contract.

      (4)   Notwithstanding any other provision in this Subsection, a successor contractor awarded a County contract for residential solid waste, recycling, or yard waste collection and disposal must offer employment to the affected service employees during the 90 day transition period only to the extent the successor contractor needs to hire new employees to perform work on the contract.

      (5)   Each successor contractor must not discharge a service employee retained under this Section without just cause during the transition period. (2012 L.M.C., ch. 18, § 1; 2018 L.M.C., ch. 29, § 1.)

Sec. 27-66. Enforcement .

   A service employee who was not offered employment or who was discharged during the transition period in violation of this Article, may file a complaint with the Director under Section 27-7. (2012 L.M.C., ch. 18, § 1.)

ARTICLE XI. COUNTY MINIMUM WAGE.

Sec. 27-67. Findings and definitions.

   (a)   Findings.

      (1)   Many persons employed in the County are paid wages which are insufficient to sustain minimum standards of living in the County.

      (2)   Minimum standards of living in the County are higher than the minimum standards of living in many other areas of the State.

      (3)   Minimum wage standards in the County are necessary to:

         (A)   promote the health and welfare of County residents;

         (B)   safeguard employers and employees against unfair competition;

         (C)   increase the stability of industry in the County;

         (D)   increase the buying power of employees in the County; and

         (E)   decrease the need for the County to spend public money for the relief of employees who also live in the County.

   (b)   Definitions. As used in this Article:

      Director means the Executive Director of the Office of Human Rights and includes the Executive Director’s designee.

      Employ means to engage a person to work for compensation.

      Employee means any person permitted or instructed to work or be present by an employer in the County and who is an employee subject to the minimum wage requirements of the Federal Act or the State Act.

      Employer means any person, individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity operating and doing business in the County that employs 1 or more persons in the County in addition to the owners. Employer includes the County government, but does not include the United States, any State, or any other local government.

      Federal Act means the federal Fair Labor Standards Act of 1938, as amended.

      State Act means the Maryland Wage and Hour Law, as amended.

      Wage means all compensation that is due to an employee for employment.

(2013 L.M.C., ch. 34, § 1; 2018 L.M.C., ch. 32, § 1.)

Sec. 27-68. Minimum wage required.

   (a)   County minimum wage. Except as provided in subsections (c) and (d), an employer must pay wages to each employee for work performed in the County at least the greater of:

      (1)   the minimum wage required for that employee under the Federal Act;

      (2)   the minimum wage required for that employee under the State Act; or

      (3)   $15.00 per hour plus any annual adjustments under subsection (b).

   (b)   Annual adjustment. The Chief Administrative Officer must adjust the minimum wage rate required under Subsection (a)(3), effective July 1, 2022, and July 1 of each subsequent year, by the annual average increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for Washington-Baltimore, or a successor index, for the previous calendar year. The Chief Administrative Officer must calculate the adjustment to the nearest multiple of five cents, and must publish the amount of this adjustment not later than March 1 of each year.

   (c)   Exclusions. The County minimum wage does not apply to an employee who:

      (1)   is exempt from the minimum wage requirements of the State or Federal Act; or

      (2)   is under the age of 19 years and is employed no more than 20 hours per week.

   (d)   Opportunity wage. An employer may pay a wage equal to 85% of the County minimum wage to an employee under the age of 20 years for the first six months that the employee is employed.

   (e)   Retaliation prohibited. A person must not:

      (1)   retaliate against any person for:

         (A)   lawfully opposing any violation of this Article; or

         (B)   filing a complaint, testifying, assisting, or participating in any manner in an investigation, proceeding, or hearing under this Article; or

      (2)   obstruct or prevent enforcement or compliance with this Article. (2013 L.M.C., ch. 34, § 1; 2016 L.M.C., ch. 7, § 1; 2017 L.M.C., ch. 32, §1.)

   Editor’s note—2017 L.M.C., ch. 32, § 2, states: Sec. 2. Transition. Notwithstanding Section 27-68, as amended in Section 1, except when the scheduled increases are temporarily suspended under subsection (f), the County minimum wage must be the greater of the minimum wage required under the Federal or State Act or:

   (a)   until July 1, 2022, for a large employer as defined in subsection (d):

      (1)   effective July 1, 2018, $12.25 per hour;

      (2)   effective July 1, 2019, $13.00 per hour;

      (3)   effective July 1, 2020, $14.00 per hour; and

      (4)   effective July 1, 2021, $15.00 per hour.

   (b)   until the minimum wage under this subsection is equal to the minimum wage required under Section 27-68, for a mid-sized employer as defined in subsection (d):

      (1)   effective July 1, 2018, $12.00 per hour;

      (2)   effective July 1, 2019, $12.50 per hour;

      (3)   effective July 1, 2020, $13.25 per hour;

      (4)   effective July 1, 2021, $14.00 per hour;

      (5)   effective July 1, 2022, $14.50 per hour;

      (6)   effective July 1, 2023, $15.00 per hour; and

      (7)   effective July 1, 2024 until it is equal to the minimum wage required under Section 27-68, the minimum wage required under this subsection must be adjusted each year, to the nearest multiple of five cents, by:

         (A)   the annual average increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for Washington-Baltimore, or a successor index, for the previous calendar year; plus

         (B)   if the increase under subparagraph (A) is less than $0.50, one percent of the minimum wage required for the prior year, up to a total increase of $0.50.

   (c)   until the minimum wage under this subsection is equal to the minimum wage required under Section 27-68, for a small employer as defined in subsection (d):

      (1)   effective July 1, 2018, $12.00 per hour;

      (2)   effective July 1, 2019, $12.50 per hour;

      (3)   effective July 1, 2020, $13.00 per hour;

      (4)   effective July 1, 2021, $13.50 per hour;

      (5)   effective July 1, 2022, $14.00 per hour;

      (6)   effective July 1, 2023, $14.50 per hour;

      (7)   effective July 1, 2024, $15.00 per hour; and

      (8)   effective July 1, 2025 until it is equal to the minimum wage required under Section 27-68, the minimum wage required under this subsection must be adjusted each year, to the nearest multiple of five cents, by:

         (A)   the annual average increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for Washington-Baltimore, or a successor index, for the previous calendar year; plus

         (B)   if the increase under subparagraph (A) is less than $0.50, one percent of the minimum wage required for the prior year, up to a total increase of $0.50.

   (d)   In this Section:

      (1)   large employer means an employer who employs 51 or more employees;

      (2)   mid-sized employer means:

         (A)   an employer who employs between 11 and 50 employees; or

         (B)   an employer who employs 11 or more employees and:

            (i)   has tax exempt status under Section 501(c)(3) of the Internal Revenue Code; or

            (ii)   provides “home health services” as defined by 42 C.F.R. § 440.70 or “home or community-based services” as defined by 42 C.F.R. § 440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.

      (3)   small employer means an employer who employs 10 or fewer employees.

   (e)   For the purposes of subsections (a), (b), and (c), an employer’s number of employees must be calculated based upon the employer’s average number of employees per calendar week during the preceding calendar year for any and all weeks during which at least one employee worked for compensation. For employers that did not have any employees during the preceding calendar year, the employer’s number of employees must be calculated based upon the average number of employees who worked for compensation per calendar week during the first 90 calendar days of the current year in which the employer engaged in business. An employer’s number of employees must be calculated at the time the employer first becomes subject to this Act, and that employer remains subject to the applicable schedule under subsection (a), (b), or (c), regardless of the number of employees employed by the employer in subsequent years.

   (f)   (1)   On or before January 31 of each year beginning in 2018 through 2024, to ensure that economic conditions can support a minimum wage increase scheduled under Section 2 of this Act, the Director of Finance must make a determination and certify to the Executive and Council whether each of the following conditions is met:

         (A)   total private employment for Montgomery County decreased by 1.5% over the period from April 1 to June 30 of the previous year. The calculation must compare total private employment in June to total private employment in April, as reported by the Maryland State Department of Labor, Licensing, and Regulation’s Quarterly Census of Employment and Wages data series;

         (B)   total private employment for Montgomery County decreased by 2.0% over the period from January 1 to June 30 of the previous year. The calculation must compare total private employment in June to total private employment in January, as reported by the Maryland State Department of Labor, Licensing, and Regulation’s Quarterly Census of Employment and Wages data series;

         (C)   the Gross Domestic Product of the United States, as published by the U.S. Department of Commerce, has experienced negative growth for the preceding two quarters; and

         (D)   the National Bureau of Economic Research has determined that the United States economy is in recession.

      (2)   If, in any year, the Director of Finance certifies that a condition in subparagraphs (A) through (D) of paragraph (1) is met, the Executive may, on or before February 10 of that year, temporarily suspend the minimum wage increases scheduled under subsections (a), (b), and (c) of Section 2 of this Act for that year.

      (3)   If the Executive temporarily suspends the scheduled minimum wage increases for a year, all dates specified in subsections (a), (b), and (c) that follow the temporary suspension must be postponed by an additional year.

      (4)   The Executive must not temporarily suspend scheduled minimum wage increases under this Section more than two times.