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If any part or provision of this Article, or the application of this Article to any person or circumstance, is held invalid, the remainder of this Article, including the application of such part or provisions to other persons or circumstances, shall not be affected by such a holding and shall continue in full force and effect. To this end, the provisions of this Article are severable.
(Added as Administrative Code Sec. 12R.12 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
This Article may be amended by the Board of Supervisors as regards the implementation or enforcement thereof, but not as regards the substantive requirements of the Article or its scope of coverage.
(Added as Administrative Code Sec. 12R.13 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
In addition to the actions provided for in Section 1.7(c), the City Attorney may bring a civil action to enjoin any violation of this Article. The City shall be entitled to its attorney’s fees and costs in any action brought pursuant to this Section where the City is the prevailing party.
(Added as Administrative Code Sec. 12R.14 by Ord. 205-06, File No. 060247, App. 7/25/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
The remedies, penalties and procedures provided under this Article are cumulative and are not intended to be exclusive of any other available remedies, penalties and procedures.
(Added as Administrative Code Sec. 12R.15 by Ord. 205-06, File No. 060247, App. 7/25/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
(a) Administrative Penalties; Citations. An administrative penalty may be assessed for a violation of the provisions of this Article as specified below. The penalty may be assessed by means of an administrative citation issued by the Director of the Office of Labor Standards Enforcement.
(b) Administrative Penalty Amounts. In addition to all other civil penalties provided for by law, the following violations shall be subject to administrative penalties in the amounts set forth below:
VIOLATION | PENALTY AMOUNT |
VIOLATION | PENALTY AMOUNT |
Failure to maintain payroll records or to retain payroll records for four years – Labor and Employment Code Section 1.5(c) | $500.00 |
Failure to allow the Office of Labor Standards Enforcement to inspect payroll records – Labor and Employment Code Section 1.5(c) | $500.00 |
Retaliation for exercising rights under Minimum Wage Ordinance – Labor and Employment Code Section 1.6 | $1,000.00 |
The Penalty for retaliation is $1,000.00 per employee. | |
Failure to Post notice of Minimum Wage rate – Labor and Employment Code Section 1.5(b) | $500.00 |
Failure to provide notice of investigation to employees – Labor and Employment Code Section 1.7(b) | |
Failure to post notice of violation to public – Labor and Employment Code Section 1.7(e) | |
Failure to provide employer’s name, address, and telephone number in writing – Labor and Employment Code Section 1.5(b) | |
The penalty amounts shall be increased cumulatively by fifty percent (50%) for each subsequent violation of the same provision by the same employer or person within a three (3) year period. The maximum penalty amount that may be imposed by administrative citation in a calendar year for each type of violation listed above shall be $5,000 or $10,000 if a citation for retaliation is issued. In addition to the penalty amounts listed above, the Office of Labor Standards Enforcement may assess enforcement costs to cover the reasonable costs incurred in enforcing the administrative penalty, including reasonable attorneys’ fees. Enforcement costs shall not count toward the $5,000 annual maximum.
(a) Separate and Continuing Violations; Penalties Paid Do Not Cure Violations. Each and every day that a violation exists constitutes a separate and distinct offense. Each section violated constitutes a separate violation for any day at issue. If the person or persons responsible for a violation fail to correct the violation within the time period specified on the citation and required under Section 1.18, the Director of the Office of Labor Standards Enforcement may issue subsequent administrative citations for the uncorrected violation(s) without issuing a new notice as provided in Section 1.18(b). Payment of the penalty shall not excuse the failure to correct the violation nor shall it bar any further enforcement action by the City. If penalties and costs are the subject of administrative appeal or judicial review, then the accrual of such penalties and costs shall be stayed until the determination of such appeal or review is final.
(b) Payments to City; Due Date; Late Payment Penalty. All penalties assessed under Section 1.16 shall be payable to the City and County of San Francisco. Administrative penalties and costs assessed by means of an administrative citation shall be due within thirty (30) days from the date of the citation. The failure of any person to pay an administrative penalty and costs within that time shall result in the assessment of an additional late fee. The amount of the late fee shall be ten (10) percent of the total amount of the administrative penalty assessed for each month the penalty and any already accrued late payment penalty remains unpaid.
(c) Collection of Penalties; Special Assessments. The failure of any person to pay a penalty assessed by administrative citation under Section 1.16 within the time specified on the citation constitutes a debt to the City. The City may file a civil action, create and impose liens as set forth below, or pursue any other legal remedy to collect such money.
(d) Liens. The City may create and impose liens against any property owned or operated by a person who fails to pay a penalty assessed by administrative citation. The procedures provided for in Chapter 10, Article XX of the Administrative Code shall govern the imposition and collection of such liens.
(e) Payment to City. The Labor Standards Enforcement Officer has the authority to require that payment of back wages found to be due and owing to employees be paid directly to the City and County of San Francisco for disbursement to the employees. The Controller shall hold the back wages in escrow for workers whom the Labor Standards Enforcement Officer, despite his/her best efforts, including any required public notice, cannot locate; funds so held for three years or more shall be dedicated to the enforcement of the Minimum Wage Ordinance or other laws enforced by the Office of Labor Standards Enforcement.
(Added as Administrative Code Sec. 12R.17 by Ord. 205-06, File No. 060247, App. 7/25/2006; amended by Ord. 175-11, File No. 110594, App. 9/16/2011, Eff. 10/16/2011; Ord. 75-14, File No. 140226, App. 5/28/2014, Eff. 6/27/2014; Proposition J, 11/4/2014; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
(a) Issuance of Citation. The Director has the authority to issue an administrative citation for any violation of this Article that is identified in Section 1.16(b). The administrative citation shall be issued on a form prescribed by the Office of Labor Standards Enforcement.
(b) Notice and Opportunity to Cure. In order to facilitate compliance, the Director of the Office of Labor Standards Enforcement (“Director”) or his or her designee may notify any person in violation of the Code provisions identified in Section 1.16(b) of such violation prior to the issuance of an administrative citation. Regardless of the manner of service of the notice under Section 1.19, the Director or his or her designee may post the notice of violation by affixing the notice to a surface in a conspicuous place on property that is (1) the person’s principal place of business in the City, or (2) if the person’s principal place of business is outside the City, the fixed location within the City from or at which the person conducts business in the City, or (3) if the person does not regularly conduct business from a fixed location in the City, one of the following: (i) the location where the person maintains payroll records if the notice of violation is for violation of Section 1.5(c), or (ii) the jobsite or other primary location where the person’s employees perform services in the City at the time the notice is posted. The notice of violation shall specify the action required to correct or otherwise remedy the violation(s). At the discretion of the Director or his or her designee, the person or persons responsible for the violation may be allowed ten (10) days from the date of the notice of violation to establish that no violation occurred or such person or persons are not responsible for the violation, or correct or otherwise remedy the violation; provided, however, that the Director may, in his or her discretion, assign a longer period, not to exceed twenty-one (21) days, within which to correct or otherwise remedy each violation, or establish that no violation occurred or such person or persons are not responsible for the violation. The Director may consider the cost of correction and the time needed to obtain information, documents, data and records for correction in assigning a specific period of time within which to correct or otherwise remedy each violation, or obtain and submit evidence that no violation occurred or such person or persons are not responsible for the violation.
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