Two couples walk along Hewitt Avenue around lunchtime in 2022 in Everett. The City Council voted Wednesday to increase wage theft protections. (Olivia Vanni / The Herald)

Two couples walk along Hewitt Avenue around lunchtime in 2022 in Everett. The City Council voted Wednesday to increase wage theft protections. (Olivia Vanni / The Herald)

Everett council votes to increase penalties for wage theft

The ordinance passed Wednesday makes it more difficult to earn city contracts after violating wage laws.

EVERETT — The Everett City Council voted Wednesday to further restrict employers who have violated wage theft laws from being awarded city contracts.

Currently, state law requires jurisdictions only contract with a “responsible bidder,” which, among other requirements, excludes those who have violated wage laws in the previous three years. Responsible bidders must show proof they are in compliance.

The new ordinance will increase the protections as part of the city’s procurement policy, increasing the time employers must be free of wage theft violations to five years, while requiring the city independently verify contractor certifications. It will take effect 15 days after the mayor signs the ordinance.

“This ordinance will take a significant step toward protecting workers in our community and ensuring fair pay for all,” said City Council member Paula Rhyne, who brought the measure to a vote at Wednesday’s meeting. “By addressing wage theft head on and shining a light on this issue, we’re sending a clear message that exploitation of workers in the city of Everett will not be tolerated.”

Wage theft occurs when an employee does not receive compensation for their work. It can include paying employees under minimum wage, not paying for overtime, forcing employees to work off the clock or confiscating tips, among other violations. In the past five years, Everett has seen 36 instances of wage theft violations, data from the state Department of Labor and Industries shows.

At an Oct. 30 council meeting, Ethan Pfahl, a field agent for the Laborers International Union of North America Local 292, cited recent incidents — without naming the contractors or when the wage theft occurred — which he said led to more than $250,000 being taken from local workers.

“If I was to walk down to the bank right now and rob them for $257,000, the [police] chief would have me face down and arrested, on those exact same streets where contractors stole money,” Pfahl said.

The vote Wednesday was unanimous.

“The city of Everett has a proud history as a working class, no-nonsense community,” Rhyne said last month. “And in this tight budget, we need to make sure that people on city contracts receive the wages they have rightfully earned from their contractors.”

Will Geschke: 425-339-3443; william.geschke@heraldnet.com; X: @willgeschke.

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