Denver Revised Municipal Code § 20-82 Payment of contract minimum wage.
Sec. 20-82. - Payment of contract minimum wage.
(a) Required. Subject to the terms of this division, every person or entity that provides any of the following services: concession services; catering services; maintenance services; ramp and cargo services; hospitality services; miscellaneous services; or security services as defined in this division ("covered services") to the city, or on city property for more than thirty (30) consecutive days in a calendar year, or pursuant to a negotiated contractual requirement, shall pay all covered workers not less than a "contract minimum wage" as calculated pursuant to subsection (c) for covered work.
(b) Contract specifications. Every covered contract with a maximum contract amount in excess of fifty thousand dollars ($50,000.00) shall contain a provision requiring that all covered workers shall be paid not less than the wage calculated pursuant to subsection (c) for all covered work. The contract minimum wage shall be paid pursuant to a covered contract from and after the date it satisfies the criteria described in this division. For any city contract that is not a covered contract, but upon renewal, amendment, or otherwise qualifies as a covered contract at a later date, the contract minimum wage requirement shall be mandatory from and after the date that a city contract qualifies as a covered contract pursuant to this division. Increases in the contract minimum wage subsequent to the date of a covered contract for a term not to exceed one (1) year shall not be mandatory on either the contractor or any other person or entity. Except as provided in this division, in no event shall any increase in the contract minimum wage result in any increased liability on the part of the city, and the possibility and risk of any such increase is assumed by all contractors entering into any covered contract with the city. Notwithstanding the foregoing, the city may negotiate, in particular covered contracts, to reimburse a contractor for increased contract minimum wage rates. Decreases in the contract minimum wage subsequent to the date of a covered contract shall not be permitted.
(c) Calculation of contract minimum wage.
(1) City council hereby declares that it is in the best interest of the city to protect workers' bargaining power and establish a contract minimum wage that shall be paid to the various covered workers identified in this division.
(2) The contract minimum wage, exclusive of fringe benefits, shall be calculated as follows:
i. Beginning July 1, 2019: $13.00 (thirteen dollars) per hour;
ii. Beginning July 1, 2020: $14.00 (fourteen dollars) per hour; and
iii. Beginning July 1, 2021 $15.00 (fifteen dollars) per hour.
(3) Tips actually received by a food and beverage worker may be applied to a contractor or other person or entity's obligation to pay the contract minimum wage. However, no more than three dollars and two cents ($3.02) per hour in tip income ("tip credit") may be used to partially offset payment of the contract minimum wage for a given day.
(4) In order to prevent inflation from eroding the value of the contract minimum wage rate, on January 1, 2023, the contract minimum wage rate shall increase to an amount equal to the Denver Minimum Wage as provided in section 58-15. Annually thereafter, on the first of January, the contract minimum wage rate shall increase by an amount corresponding to the increase in the Denver Minimum Wage.
(d) Exclusions. Absent a negotiated contractual requirement, this division shall not apply to: intergovernmental agreements; any participant in an employment program certified by the city; any contract for state or federally mandated services or for services subject to statutory rate-setting; loans made by the city; entities who are subject to a wage-commitment agreement; persons or entities not providing covered services to the city pursuant to a contractual relationship directly with the city whose provision of covered services on city property occurs for less than seven (7) consecutive days in a calendar year and thirty (30) total days in a calendar year; the purchase and sale by the city of real property or goods; persons providing volunteer services that are uncompensated except for reimbursement of expenses such as meals, parking or transportation; qualified small business contractors; except with respect to catering services, persons whose work pursuant to a covered contract is limited solely to the role of a supplier; or city contracts which contemplate work to be performed such as a license or permit to use city-owned land that are neither a revenue or expenditure contract.
(e) Third party complaints. Subject to any rules and regulations that may be issued by the auditor, any person or third party, including an employee of a contractor, may submit a complaint of a violation of this division to the auditor. The burden of demonstrating to the auditor's satisfaction that a violation has occurred rests with the person or third party making the complaint and shall be demonstrated by a preponderance of the evidence. Any such complaint shall be made in writing to the auditor and shall include all information relied upon by such person. If a person making a complaint pursuant to this subsection is unable to reasonably file her or his complaint in writing, a complainant may request the auditor to assist him or her with documenting any allegations to satisfy the written complaint requirement. The auditor shall investigate credible complaints, shall notify any contractor alleged to have violated this division of any credible complaint, and shall provide a summary of findings regarding any such complaint to both the complainant and the contractor. Any determination by the auditor pursuant to this division is reviewable by the complained-of party, pursuant to subsection (g). Any complaint must be submitted to the auditor within one (1) year of the date the contractor was alleged to have violated the requirements of this division, and shall include: the worker's name and/or the name of their duly authorized representative, if applicable; the worker's contact information; and a detailed statement of the contractor's alleged violation of the requirements of this division, including all supporting documentation demonstrating a violation. Contractor shall be subject to penalties and other consequences pursuant to this division for any actual violation(s) that occurred within one (1) year of the date a credible complaint was first and timely submitted to the auditor pursuant to this division and within three (3) years of the date an audit of a covered contract is initiated by the auditor.
(f) Retaliation strictly prohibited. No contractor shall interfere with, restrain, deny, assist another person or entity, or attempt to deny the exercise of any right protected under this division. Any attempted or actual retaliation shall be regulated as follows:
(1) No contractor or any other person shall take any adverse action against any person because the person has exercised in good faith rights described in this division. Such rights include, but are not limited to, the right to make inquiries about rights protected under this division; the right to inform contractor, a union, or similar organization, and/or the person's legal counsel or any other person about an alleged violation of this division; the right to file a written complaint with the auditor; the right to cooperate with the auditor in any investigations pursuant to this division; the right to testify in a proceeding related to an investigation pursuant to this division; the right to refuse to participate in an activity that would result in a violation of city, state, or federal law; and the right to oppose any policy, practice, or act that is unlawful pursuant to this division.
(2) No contractor or any other person shall communicate to a person exercising rights protected under this division, directly or indirectly, the willingness to inform a government employee that the person is not lawfully in the United States, or to report, or to make an implied or express assertion of a willingness to report, suspected citizenship or immigration status of an employee or a family member of the employee to a federal, state, or local agency because the employee has exercised a right pursuant to this division.
(3) It shall be a rebuttable presumption of retaliation if a contractor or any other entity or person takes an adverse action against a person within ninety (90) days of the person's exercise of rights protected in this division. However, in the case of seasonal work that ended before the close of a 90-day period, the presumption also applies if the contractor or other person or entity fails to rehire a former employee at the next opportunity for work in the same position. The contractor may rebut this presumption with clear and convincing evidence that the adverse action was taken for a lawful purpose.
(4) Proof of retaliation shall be sufficient upon a showing that a contractor or any other person or entity has taken an adverse action against a person and the person's exercise of rights protected in this division was a motivating factor in the adverse action, unless the contractor can prove that the action would have been taken in the absence of such protected activity.
(g) Review. Any determination of the auditor related to the payment of the contract minimum wage, and a contractor's strict adherence to the requirements of this division including, but not limited to, determinations of covered worker status, determinations of underpayment or misreporting, and the imposition of penalties pursuant to this division shall be reviewable as follows:
(1) Any contractor who disputes any determination made by or on behalf of the city pursuant to the authority of the auditor, which determination adversely affects such contractor, may petition the auditor for a hearing concerning such determination no later than thirty (30) days after having been notified of any such determination. Compliance with the provisions of this subsection shall be a jurisdictional prerequisite to any action brought under the provisions of this division, and failure of compliance shall forever bar any such action.
(2) The auditor shall designate as a hearing officer a person retained by the city for that purpose.
(3) The petition for a hearing shall be in writing, and the facts and figures submitted shall be submitted under oath or affirmation either in writing or orally at a hearing scheduled by the hearing officer. The hearing, if any, shall take place in the city, and notice thereof and the proceedings shall otherwise be in accordance with rules and regulations issued by the auditor. The petitioner shall bear the burden of proof, and the standard of proof shall conform with that in civil, nonjury cases in state district court.
(4) Following a hearing, the hearing officer shall make a final determination. Such final determination shall be considered a final order and may be reviewed under Rule 106(a)(4) of the state rules of civil procedure by the petitioner or by the city. A request for reconsideration of the determination may be made if filed in writing with the hearing officer within fifteen (15) days of the date of a final determination, in which case the hearing officer shall review the record of the proceedings, and the determination shall be considered a final order upon the date the hearing officer rules on the request for reconsideration.
(5) The district court of the second judicial district of the State of Colorado shall have original jurisdiction in proceedings to review all questions of law and fact determined by the hearing officer by order or writ under Rule 106(a)(4) of the state rules of civil procedure.
(h) Recordkeeping requirements and inspection. All contractors pursuant to a covered contract shall retain sufficient payroll records pertaining to all covered workers for a period of at least three (3) years. Contractors shall allow the auditor access to such records following a complaint determined credible by the auditor, or in connection with an audit of a covered contract, at a reasonable time during normal business hours to ensure compliance with the requirements of this division. Should a contractor not maintain or retain adequate records documenting the manner and amount of wages paid, or not allow the auditor reasonable access to such records, there shall be a presumption, rebuttable by clear and convincing evidence, that the contractor violated this division for the periods and for each employee for whom adequate records were not retained or access to such records was not timely provided.
(Ord. No. 163-19, § 1, 3-11-19; Ord. No. 625-22, § 2, 6-20-22; Ord. No. 1614-22, § 6, 1-9-23)
