Committee approves staffing authorization and hearswaiver, referendum and training implementation issues for hotel worker ordinance

The Economic and Jobs Committee reviewed joint reports from the Bureau of Contract Administration (BCA) and the City AttorneyOffice about resources needed to implement the citywide hotel worker minimum wage ordinance and related hotel and airport rules.

Dania Minassian, deputy city attorney in the workers rights division, summarized enforcement roles and said the WorkersRights Division provides legal support to the Office of Wage Standards (OWS) and the Office of Contract Compliance. She said the city expects a major increase in investigations after the council’s recent ordinance amendments and recommended at minimum one additional assistant city attorney and one deputy city attorney to support the work; the division currently has six attorneys.

John Reamer, Inspector of Public Works and Director of the Bureau of Contract Administration, told the committee BCA enforces prevailing wage and living wage rules and has expanded its enforcement role since the citywide minimum wage. He described a shift toward “strategic” (proactive) enforcement that targets likely “hot spots” rather than relying solely on complaint intake. Kimberly Fitzpatrick of BCA said the office has already processed three waiver requests under the hotel ordinance and expects at least one completed waiver package imminently. She described the waiver process as labor intensive and said required documents include multi‑year financial statements, projections and supporting schedules.

Committee members asked about a threatened referendum on the hotel wage ordinance. City attorneys said the ordinance’s July 1 effective date stands unless proponents gather and submit signatures that qualify for a suspension. The Clerk’s office would verify signatures; if signatures are valid the ordinance would be suspended while verification proceeds and, if the referendum qualifies, the ordinance’s effective date would be paused until ballot action or Council response. The attorneys said there is no automatic retroactive pay to workers if the ordinance is suspended; the law’s effective date is the date the suspension is lifted or the ordinance becomes effective after verification.

Committee member discussion produced a motion to note and file the BCA and City Attorney reports, to authorize by resolution one assistant city attorney position in the Office of the City Attorney for implementation of the hotel worker ordinance, and to continue a related item pending a report from the City Administrative Officer (CLA) with BCA and the City Attorney’s assistance. The committee voted to authorize the position and note the reports. Vote recorded: Councilmember Price, Aye; Councilmember Jose Martinez, Yes; Councilmember Rodago, Yes; Councilmember Nazarian, Aye; Councilmember Park, absent. The committee instructed staff to return with additional details on grant funding and on the volume of waiver processing as the ordinance moves toward its implementation date.