10c. Draft Resolution 3789
Item Number: 10c_reso 1 Meeting Date: July 27, 2021 2 PORT OF SEATTLE 3 RESOLUTION NO. 3789 4 5 A RESOLUTION of the Port Commission of the Port of Seattle to enact 6 minimum wage and worker retention requirements 7 applicable to certain employers located at Seattle-Tacoma 8 International Airport, pursuant to the authority granted to 9 the Port under RCW 14.08.120(2). 10 11 WHEREAS, the voters of King County authorized and approved the formation of a port 12 district coextensive with King County to be known as the Port of Seattle in a special election on 13 September 5, 1911; and 14 15 WHEREAS, the Port of Seattle was established upon election as a port district and has 16 been since then, and is now, a duly authorized and acting port district of the state of Washington; 17 and 18 19 WHEREAS, the Port Commission is the legally-constituted governing body of the Port of 20 Seattle; and 21 22 WHEREAS, in accordance with RCW 14.08.030, the Port of Seattle owns and operates 23 Seattle-Tacoma International Airport (the "Airport"); and 24 25 WHEREAS, RCW 14.08.120(1)(b) authorizes the Port of Seattle to adopt and amend all 26 needed rules and regulations for the management, government, and use of airports and air 27 navigation facilities under its control, including the Airport; and 28 29 WHEREAS, RCW 14.08.120(2)(a) provides that a municipality that controls or operates 30 an airport having had more than twenty million annual commercial air service passenger 31 enplanements on average over the most recent seven full calendar years that is located within the 32 boundaries of a city that has passed a local law or ordinance setting a minimum labor standard that 33 applies to certain employers operating or providing goods and services at the airport is authorized 34 to enact a minimum labor standard that applies to employees working at the airport, so long as the 35 minimum labor standard at least meets the minimum labor standard in the city's law or ordinance; 36 and 37 38 WHEREAS, RCW 14.08.120(2)(b) provides that a municipality's authority to establish a 39 minimum labor standard pursuant to (a) of this subsection may be imposed only on employers that 40 are excluded from the minimum labor standard established by such city because the type of good 41 or service provided by the employer is expressly excluded in the text of the city's law or ordinance; 42 and 43 44 WHEREAS, the Airport has had more than twenty million annual commercial air service 45 passenger enplanements on average over the most recent seven full calendar years (2014-2020); 46 and Resolution 3789, Minimum Labor Standards for Certain Employers at Airport Page 1 of 4 47 48 49 WHEREAS, in 2013, voters in the City of SeaTac enacted Proposition 1 ("Prop 1") 50 (Ch. 7.45 SMC), which established a number of separate minimum labor standards for certain 51 categories of employers located in the City of SeaTac; and 52 53 WHEREAS, the Airport is located within the boundaries of the City of SeaTac; and 54 55 WHEREAS, one minimum labor standard included by Prop 1 is the establishment of a 56 minimum wage for certain categories of employers operating in the City of SeaTac; and 57 58 WHEREAS, Prop 1 set the initial minimum wage to be imposed on covered employers at 59 $15.00 per hour beginning on January 1, 2015, subject to adjustment on January 1 of every 60 subsequent year to keep pace with the rate of inflation (SMC 7.45.050); and 61 62 WHEREAS, the Prop 1 minimum wage for 2021 is $16.57 per hour; and 63 64 WHEREAS, Prop 1 also established a worker retention minimum labor standard for 65 certain categories of employers operating in the City of SeaTac, in certain circumstances 66 (SMC 7.45.060); and 67 68 WHEREAS, in Filo Foods, LLC v. City of SeaTac, 183 Wn.2d 770, 357 P.3d 1040 (2015), 69 the Washington Supreme Court held that Prop 1 applies to employer categories covered by Prop 1 70 located at the Airport; and 71 72 WHEREAS, employers within the scope of Prop 1 who operate at the Airport currently 73 are required to pay Prop 1-level wages and comply with Prop 1's worker retention requirement; 74 and 75 76 WHEREAS, Prop 1 expressly excludes certain types of employers from its scope based 77 on the type of goods or services they provide, including employers that prepare food or beverage 78 to be served in-flight by an airline (SMC 7.45.010(G)); and 79 80 WHEREAS, pursuant to the authority specifically granted to the Port under 81 RCW 14.08.120(2)(b), the Port seeks to enact minimum wage and worker retention requirements 82 to apply to those employers that are expressly excluded from Prop 1's scope in the text of the 83 ordinance because they engage in the preparation of food or beverage to be served in-flight by an 84 airline; and 85 86 WHEREAS, pursuant to RCW 14.08.120(2)(d), any such minimum wage and worker 87 retention requirements imposed by the Port of Seattle will apply only to covered employers that 88 provide goods or services at the Airport from facilities that are located on property owned by the 89 Port of Seattle within the boundaries of the City of SeaTac; and 90 91 WHEREAS, imposing minimum wage and worker retention requirements on employers 92 who were expressly excluded in the text of Prop 1 because of the type of good or service the Resolution 3789, Minimum Labor Standards for Certain Employers at Airport Page 2 of 4 93 employer provides is necessary and convenient, and in the best interests and for the benefit of the 94 Port of Seattle, the affected employees, and the public; and 95 96 WHEREAS, consistent with RCW 14.08.120(2)(c), any minimum wage and worker 97 retention requirement enacted by the Port of Seattle will not apply to employers at the Airport who 98 were excluded from Prop 1 because they are a certificated air carrier performing services for itself 99 or based on the employer's size or number of employees; and 100 101 WHEREAS, it is the Commission's intent that the minimum wage and worker retention 102 requirements enacted by this Resolution will at least meet the minimum wage and worker retention 103 requirements set forth in Prop 1 for employers covered by the ordinance. 104 105 NOW, THEREFORE, BE IT RESOLVED by the Port Commission of the Port of Seattle 106 that the following minimum labor standards are hereby enacted: 107 108 1. Employers that provide goods or services at the Airport and are engaged in the preparation 109 of food or beverage to be served in-flight by an airline from facilities that are located on 110 property owned by the Port of Seattle within the City of SeaTac shall pay their employees 111 a wage that at least meets the hourly minimum wage established by Prop 1. 112 113 2. The minimum wage required to be paid under this Resolution shall be adjusted for inflation 114 on the same schedule that the minimum wage set forth in Prop 1 is adjusted, so that the 115 minimum wage required to be paid by an employer under this Resolution continuously at 116 least meets the minimum wage amount required by Prop 1. 117 118 3. Employers subject to this Resolution shall be required to begin paying the minimum wage 119 set forth herein no later than August 2, 2021 (the "Implementation Date"). 120 121 4. Employers that provide goods or services at the Airport and are engaged in the preparation 122 of food or beverage to be served in-flight by an airline from facilities that are located on 123 property owned by the Port of Seattle within the City of SeaTac shall comply with a worker 124 retention requirement that at least meets the worker retention requirement established by 125 Prop 1. 126 127 5. This worker retention requirement shall become effective on the Implementation Date. 128 129 6. The Managing Director of the Aviation Division of the Port of Seattle is authorized and 130 directed to promulgate and administer Rules and Regulations to carry out the provisions of 131 this Resolution. The Rules and Regulations must be consistent with state and federal law 132 and this Resolution. 133 134 135 136 137 138 Resolution 3789, Minimum Labor Standards for Certain Employers at Airport Page 3 of 4 139 ADOPTED by the Port Commission of the Port of Seattle, at a duly noticed meeting held this 140 day of ______________, 2021, and duly authenticated in open session by the signatures 141 of the Commissioners voting in favor thereof and the seal of the commission. 142 143 144 145 146 147 148 149 150 151 152 153 Port of Seattle Commission Resolution 3789, Minimum Labor Standards for Certain Employers at Airport Page 4 of 4
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