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