Common use of Minimum Compensation Ordinance Clause in Contracts

Minimum Compensation Ordinance. (“MCO”) Background‌ The Minimum Compensation Ordinance went into effect October 8, 2000. This new law requires some, but not all, organizations that have service contracts with the City or operate at San Francisco International Airport to pay their employees who are working on those City contracts at least $9 per hour and provide 12 paid days off per year and 10 unpaid days off per year (for a full-time employee working under the City contract). If an employee works less than full time on the City contract, the employer must pay the employee $9 an hour for the hours worked on the City contract, and the paid and unpaid time off must be proportional to the hours worked on the City contract. To qualify for MCO benefits, the employees working on the City contract must work at least 4 hours per week per pay period if they are working within San Francisco city limits or on property owned by the City, or at least 10 hours per week per pay period if they are working elsewhere. The MCO applies only if you have at least $25,000 ($50,000 for non-profit organizations) in cumulative annual business with a City department and have more than 20 employees, including employees of any parent, subsidiaries and subcontractors. If you meet these criteria but do not provide MCO benefits for a potential City contract, the City can do business with you only if the contract receives an exemption or a waiver. Your best source of information about the MCO is the MCO website: ▇▇▇▇://▇▇▇▇▇.▇▇▇/mco You will find: • The text of the ordinance. Section 12P.5 contains new contract language that appears in the City’s contracts and purchase orders. • Information and Help for Contractors • Information and Help for Contractors at the Airport • Information and Help for Employees • FAQs • Forms • Contact Information

Minimum Compensation Ordinance. (“MCO”) Background‌ The Minimum Compensation Ordinance went into effect October 8, 2000. This new law requires some, but not all, organizations that have service contracts with the City or operate at San Francisco International Airport to pay their employees who are working on those City contracts at least $9 per hour and provide 12 paid days off per year and 10 unpaid days off per year (for a full-full- time employee working under the City contract). If an employee works less than full time on the City contract, the employer must pay the employee $9 an hour for the hours worked on the City contract, and the paid and unpaid time off must be proportional to the hours worked on the City contract. To qualify for MCO benefits, the employees working on the City contract must work at least 4 hours per week per pay period if they are working within San Francisco city limits or on property owned by the City, or at least 10 hours per week per pay period if they are working elsewhere. The MCO applies only if you have at least $25,000 ($50,000 for non-profit organizations) in cumulative annual business with a City department and have more than 20 employees, including employees of any parent, subsidiaries and subcontractors. If you meet these criteria but do not provide MCO benefits for a potential City contract, the City can do business with you only if the contract receives an exemption or a waiver. Your best source of information about the MCO is the MCO website: ▇▇▇▇://▇▇▇▇▇.▇▇▇/mco You will find: • The text of the ordinance. Section 12P.5 contains new contract language that appears in the City’s contracts and purchase orders. • Information and Help for Contractors • Information and Help for Contractors at the Airport • Information and Help for Employees • FAQs • Forms • Contact Information