1200 Wilmette Avenue Wilmette, IL 60091

Transcription

1 1200 Wilmette Avenue Wilmette, IL NOTICE OF MEETING MINIMUM WAGE & PAID SICK LEAVE WORKING GROUP Monday, January 22, 2018 at 7:00 P.M. Village Hall Training Room 1200 Wilmette Avenue, Wilmette, IL (847) Fax (847) TDD (847) AGENDA I. Call to Order II. III. IV. Approval of Minutes of the January 8, 2018 Working Group Meeting Public Comment Finalize Summary of the Cook County Minimum Wage & Paid Sick Leave Ordinances V. Finalize Survey Questions and Methods for the Following: Employers Employees Employers in North Shore Communities Landlords/Brokers Village Staff in North Shore Communities VI. VII. Review of Final Report Template & Potential Questions / Sources of Data Items for Discussion at Future Meetings: Resident Feedback / Survey Feedback from the Faith Community Living Wage Paid Sick Leave Studies Meta-Analysis Studies of Minimum Wage Cook County Commission on Human Rights Data Impact of Federal Tax Reform Other Employment & Quantitative Data VIII. Adjournment IF YOU ARE A PERSON WITH A DISABILITY AND NEED SPECIAL ACCOMMODATIONS TO PARTICIPATE IN AND/OR ATTEND A VILLAGE OF WILMETTE PUBLIC MEETING, PLEASE NOTIFY THE VILLAGE MANAGER S OFFICE AT (847) OR TDD (847) AS SOON AS POSSIBLE.

2 1/8/18 DRAFT 1200 Wilmette Avenue WILMETTE, ILLINOIS MEETING MINUTES MINIMUM WAGE & PAID SICK LEAVE WORKING GROUP MONDAY, JANUARY 8, :00P.M. MALLINCKRODT COMMUNITY CENTER Members Present: Staff Present: John Jacoby, Chair Brian Fabes John Haser Beth Lambrecht George Rafeedie Laura Saleh Therese Steinken Mike Braiman, Assistant Village Manager John Prejzner, Assistant Director of Administrative Services I. CALL TO ORDER Chair John Jacoby called the meeting to order at 7:03 p.m. All members of the Working Group were present. II. PUBLIC COMMENT Jon Marshall stated that along with any survey, the Working Group should present basic facts such as a one-page FAQ sheet. Mr. Marshall stated that the Group should obtain information from the public health community on the impacts of the paid sick leave Ordinance. Furthermore, he recommended reaching out to neighboring communities and gather information such as business license data and sales tax data. Lastly, he suggested finding out impact on workers by reaching out to New Trier Township as they serve many working families who may be struggling. Gina Kennedy urged the Group to not reject macro-level studies as stated in the memo to the Group as they may not be determinative, but they are relevant. Additionally, she stated that the Group should study the impact of newly passed tax law changes. Phone surveys have big 1

3 challenges and may not be worthy of the cost. Diana Hackbarth stated that it is important to provide context when asking questions on a survey. Seth Krantz provided a story about a patient of his who was a school bus driver and who could not get any days off of work for lung cancer surgery. Megan Hughes stated that she is a former Wilmette resident and that without sick time off employees can spread dangerous diseases. Sam Grossner stated he is concerned about the impact of paperwork requirements on businesses. Peter Nussbaum stated that the Group should consider the customer and will business be too high in costs as a result of the Ordinances. III. REVIEW OF ILLINOIS OPEN MEETINGS ACT Mike Braiman, Assistant Village Manager, reviewed key details of the Illinois Open Meetings Act and how they apply to the Working Group. IV. DISCUSSION OF WORKING GROUP MANDATE & INITIAL STEPS TO IDENTIFY SOURCES OF INFORMATION AND COLLECTION OF INFORMATION RELATING TO THE COOK COUNTY MINIMUM WAGE & PAID SICK LEAVE ORDINACNES John Jacoby, Chair of the Working Group, stated that staff developed and presented a memo to the Working Group that identified the Group s mandate. Furthermore, it identified possible goals for the Group at this meeting, specifically identifying the people or groups that should be sources of information during the study and then determining the methods of soliciting information from these groups. Mr. Jacoby asked for comments and input from the Group and the public. Brian Fabes stated that we should start by asking what do we want to know? and work backwards from there. On minimum wage, Mr. Fabes stated some data should include what has employment growth been like in Chicago compared to other surrounding communities since the implementation of a higher minimum wage in Chicago; comparing Chicago area Consumer Price Index (CPI) to that in the State; identifying the demographics of the workers in Wilmette that are affected; studying the living wage in Cook County and how it is affected by minimum wage, and more. Mr. Fabes stated that a lot of this information can be sourced from the Illinois Department of Employment Security (IDES) as well as business license data in the Village and surrounding communities. The Working Group discussed Mr. Fabes recommendations and feedback from the public. 2

4 The members of the Working Group discussed the various sources of information that it would like to receive feedback from, including businesses in and outside of Wilmette, customers/residents, landlords and real estate brokers, business owners, and employees. The working group will send feedback to staff, including questions to be asked of the different groups, and will continue this discussion at its next meeting on January 22, V. NEW BUSINESS None. VI. ADJOURNMENT The meeting was adjourned at 8:30 p.m. 3

5 Date: January 17, 2018 To: From: Subject: Minimum Wage & Paid Sick Leave Working Group Michael Braiman, Assistant Village Manager John Prejzner, Assistant Director of Administrative Services Summary of Cook County Ordinances At the January 8 th Working Group meeting, there was a request to provide an updated summary of the Cook County Minimum Wage & Paid Sick Leave Ordinances. The updated summary is attached based on Village staff s review of the Cook County Ordinances and Interpretative and Procedural Rules as drafted by the Cook County Commission on Human Rights dated May 25, The Cook County guidance materials provide a series of hypotheticals which may impact how the Ordinance is enforced by Cook County. Therefore, the summary provided is a general overview of the mandates, and is subject to change as the nuances of law are further interpreted. Recommended Action Village Staff is seeking approval of the attached Cook County Ordinance summary to be included in the Working Group s final report to the Village Board.

6 Cook County Ordinances on Minimum Wage and Mandatory Paid Sick Leave (January 17, 2018) Definition of Employer Definition of Employee Jurisdiction Applies to persons under 18 Applies to seasonal/temporary employees Applies to Independent Contractors Minimum Wage Any entity with any place of business in Cook County, or licensed by Cook County, with 1 or more Covered Employees Works 2 hours in any 2 week period Employees who perform work in covered portions of Cook County, regardless of the location of their business office, may be entitled to the County Minimum Wage only for that work. No No, for up to the first 90 days of employment No* *The County regulations are at present unclear as to how they will apply to occasional babysitters/childcare providers and housekeepers. Mandatory Paid Sick Leave Any entity with any place of business in Cook County with 1 or more Covered Employees Works 2 hours in any 2 week period Employees who perform work in covered portions of Cook County, regardless of the location of their business office, may be entitled to the County Sick Leave only for that work. Yes Yes, to persons who work at least 80 hrs. over any 120-day period No* *The County regulations are at present unclear as to how they will apply to occasional babysitters/childcare providers and housekeepers. The interpretation and enforcement of the Cook County Ordinances is provided by the Cook County Commission on Human Rights which may provide differing opinions than what is contained within the Village of Wilmette materials. To date, there are no court rulings on any of provisions of the Cook County Ordinances, which may further provide interpretation of the Cook County Ordinances.

7 Minimum Wage Mandatory Paid Sick Leave Collective Bargaining Agreements Does not apply to employees covered under Collective Bargaining Agreements ( CBA ) on or before July 1, 2017 and for those CBAs that have waived the ordinance requirements. Does not apply to employees covered under Collective Bargaining Agreements ( CBA ) on or before July 1, 2017 and for those CBAs that have waived the ordinance requirements. Current Illinois Law Current IL Minimum Wage $8.25/hr. Tipped Employees $8.25/hr. No paid sick leave benefits Benefits provided by Cook County Ordinances July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020 $10.00/hr. Accrual Rate 1 hr. sick leave per 40 hrs. of work $11.00/hr. Max. Yearly Accrual 40 hrs. per 12 mo. period $12.00/hr. Max. Carryover 20 hrs. to next 12 mo. period $13.00/hr. Total Max Accrual - 60 hrs. Benefits provided to Tipped Employees Exemptions July 1, 2021 and future: Annual CPI Increase July 1, 2018 and future: Annual CPI Increase (Minimum pay $8.25/hr. + Annual CPI) All Units of Government other than Cook County Same as all other covered employees All Units of Government including Cook County

8 Date: January 18, 2018 To: From: Subject: Minimum Wage & Paid Sick Leave Working Group Michael Braiman, Assistant Village Manager John Prejzner, Assistant Director of Administrative Services Minimum Wage & Paid Sick Leave Questionnaires Background At the conclusion of the Working Group s ( Group ) January 8, 2018 meeting, Chair Jacoby asked members of the Group, as well as the public, to submit questions for each specific source of information (identified on page two). To help facilitate this process, Village staff, working with Chair Jacoby, prepared a draft questionnaire for each specific source of information, which was submitted for the Group s consideration. Based upon feedback from the Group, as well as interested members of the public, the questionnaires have been revised by staff. The questionnaires are attached for the Group s review. Goals and Process Staff s primary goals in amending the questionnaires were to: 1. eliminate the potential for bias, 2. ensure anonymity, and 3. limit the number of speculative questions and responses. Keeping those goals in mind, staff attempted to include commentary and feedback from the Group and interested members of the public; however, doing so completely would have rendered the questionnaires unmanageable and ineffective. Accordingly, while a majority of suggestions were incorporated, not all suggestions could be. In those situations where the purpose or reason of a requested change or addition was missing or unclear, those amendments may not have been incorporated. Also, when conflicting comments were made, it was impossible to include multiple amendments. That said, the questions are still in draft form and there will be time to provide additional feedback, which may lead to further requested changes. 1

9 Discussion There are five sets of questionnaires, each drafted specifically for the following sources of information: Wilmette business owners/employers Employees of Wilmette businesses Business owners in North Shore communities which have not opted out of the Cook County ordinances (Evanston, Skokie, Winnetka, Glencoe) Village Staff in North Shore communities which have not opted out of the Cook County ordinances Landlords and Brokers who regularly work in the North Shore NOTE: It is the Group s intent to solicit feedback from Village residents. Given that it will take longer to collect the data from the sources above, the Group will first focus on finalizing questions for the aforementioned groups. Once completed, the Group can then shift its focus to the questions to be asked and methods utilized for public input. It is the goal of the Group to finalize the five sets of questions at its January 22 nd meeting. Once the Group has agreed on the survey questions, a final review will be conducted by the Village s independent survey and research expert prior to the release of the questionnaires. This review will help ensure that the questions are unbiased and drafted in a manner which facilitates productive responses and avoids speculation wherever possible. Challenges with Data Collection It is important that the Working Group and community recognize the challenges associated with soliciting information from the sources listed above. While the Village Staff will do its best to obtain information, none of these sources is obligated to respond. The Village will make every effort to ensure anonymity, but it should be anticipated that a number of potential respondents (business owners and employees alike) may choose to ignore the survey, feel that the questions are intrusive, or that the information requested is of a proprietary or private nature. In order to ensure no particular employer or employee is restricted from responding to a questionnaire, the surveys issued will not use a representative sample method of collecting data, rather it will be data collected with no exclusions. Methods of Data Collection Given the challenges of collecting the data as discussed above, it is unlikely that any type of survey method (other than a professional phone survey) will elicit statistically significant responses. Even so, the survey results are an important component of the 2

10 Working Group s efforts and will serve as one of many data points for the Village Board to consider in its decision making process. Due to the sensitive nature of the questions and data being sought, anonymity of the responder is essential. Furthermore, prohibiting multiple responses from the same responder is also critical to maintaining integrity of the data. The following data collection methods are available to the Working Group (to eliminate duplicate responses, only one method per source should be selected): Mailed survey surveys can be mailed with business reply envelopes so as to provide free return postage for the responder. The cost will vary based on the number of surveys sent and percentage of responses. However, the cost to mail each survey is $0.49 and each reply will cost approximately $0.56. For example, if 1,000 surveys are sent and assuming a 10% response rate, the postage cost will be approximately $550 plus any printing costs. The advantage of this method is that all business addresses are known to the Village, ensuring that the survey will reach as many businesses/employees as possible. The disadvantage of this method is that the response rate is likely to be low causing multiple statistical issues (coverage error, non-response skew, etc.- these are errors which are avoided in a professional phone survey). Additionally, this is a very labor intensive process as all responses have to be manually compiled and tabulated. o Recommended for: Employees this is the only reliable method in which employees can be surveyed. The Village does not have addresses or phone numbers for employees, thus eliminating the other options listed below. To survey employees, the employer would be asked to distribute the mailed surveys to their employees. Employees can submit responses directly to the Village by using the business reply envelopes. Online survey the Village can utilize an online survey tool (SurveyMonkey) to anonymous surveys. The cost for this service ranges from free to $35/month depending on the number of questions, the style of the survey, and other factors (staff recommends utilizing the paid version). The advantage of this method is that the response rate will likely be higher as responding to the survey is quicker and easier than the mail method. While the Village has a comprehensive list of employer addresses, no such list exists for employees or residents. o Recommended for: 3

11 Employers this method is recommended for employers as this method will reach nearly all of the employers and will likely lead to the higher response rate than a mailed survey. Phone survey a professional survey company can be hired to conduct a phone survey. Based on previous experience, a survey of 300 respondents will cost $4,000 - $8,000 depending on the number of questions asked. There was concern expressed at the previous meeting that phone surveys do not reach a representative sample of the population as they only reach landlines. The company the Village has engaged in the past indicated that many of the interviews are in fact conducted on cell phones. Furthermore, they ensure all major sub-groups are represented in proportion to their percentage of the population. The advantage of this method is that the number of responses is known and is the most statistically significant and representative of the three options. The disadvantage of this is the cost. o Recommended for: Residents this method is recommended for contacting residents as the other two options listed above will not reach a representative portion of residents and may cause statistical errors. Also, this is the least labor intensive method, especially compared to the mailed survey. Oral interview this method will utilize Village staff to contact responders and conduct either an in-person or phone interview. This is a more personal method of communication that can be used with sources outside of the Village that may not be aware of the Village s study or have little to no incentive to reply to the other methods. o Recommended for: Out-of-town employers, landlords/brokers, and municipal staff in other municipalities Village staff does not have a comprehensive list of s for groups listed. As previously mentioned, a mail survey is not likely to lead to many responses. Documents Attached 1. Proposed Survey Questions (5 questionnaires) 2. Comments / Suggestions regarding the initial set of draft questions 4

12 ANONYMOUS SURVEY Minimum Wage & Paid Sick Leave Questionnaire Business Owners and Other Covered Employers DRAFT The Village of Wilmette has opted out of the Cook County ordinances mandating an increased minimum wage and paid sick leave. The Village is studying these issues and intends to reconsider them over the next several months. Your anonymous feedback will be important in helping the Village Board formulate its policy. This questionnaire is designed to help the Village Board understand the impacts of the County ordinances while ensuring anonymity and confidentiality to those who respond. The survey does not ask for your name, your business entity, or any other identifying information. General Questions 1. Type of business or employing enterprise (hereafter collectively called "Business"): Retail Restaurant Service Professional Non-Profit Other (Please specify, in general terms, the industry or nature of the business): 2. Number of years your business has operated in Wilmette: 3. During a typical week: Total # of employees employed by your business Number of full-time employees (working 30 hours or more per week): Number of part-time employees (working less than 30 hours per week): Number of employees working less than 90 days in a consecutive period: 4. Typical # of employees under the age of 18 you employ throughout the year: 5. Number of employees categorized as tipped employees: 6. Average tenure of employees (in years): 1

13 Minimum Wage Questions For any employer with one or more employees, the Cook County minimum wage ordinance mandates the following wage rates: July 1, 2017: $10.00 per hour July 1, 2018: $11.00 per hour July 1, 2019: $12.00 per hour July 1, 2020: $13.00 per hour July 1, 2021 and future years: Annual Increase based on Consumer Price Index (CPI) Effective July 1, 2018, the minimum wage rate of $8.25/hr. for tipped employees (consistent with existing State law) will increase annually per the increase in the CPI; annual increases shall not exceed 2.5%. The Cook County Minimum Wage ordinance does not apply to individuals under the age of 18 nor does it apply to employees who work less than 90 days in a consecutive period. Wage Rates (Current Workforce): 1. Number of full-time employees paid the following: <$11.00/hour: $ /hour: $ /hour $13 or more: 2. Number of part-time employees paid the following: <$11.00/hour: $ /hour: $ /hour $13 or more: 3. What is the lowest starting hourly rate paid to a full-time employee in your Business: $ 4. Do you believe the Village of Wilmette should opt into the Cook County Minimum Wage Ordinance? Yes No Please explain why selected Yes or No above: 2

14 Paid Sick Leave Questions For any employer with one or more employees of all ages, the Cook County Paid Sick Leave Ordinance mandates up to 40 hours of paid sick time off for employees who work at least 80 hours over a 120-day period. Employees may accrue up to a maximum of 60 paid sick leave hours. Employers who already provide a minimum of 60 hours of paid time off (including paid vacation and holidays) are not required to provide additional time. 1. Which of the following paid time-off do you provide to full-time employees: Vacation Sick Holidays None How is this paid time-off accrued/earned? 2. Which of the following paid time-off do you provide to part-time employees: Vacation Sick Holidays None How is this paid time-off accrued/earned? 3. Which of the following paid time-off do you provide to employees who work less than 90 days in a consecutive period: Vacation Sick Holidays None How is this paid time-off accrued/earned? 4. How do you currently track and administer paid time off? Manually Computer Program Outsourced Other (please specify) 5. Do you believe the Village of Wilmette should opt into the Cook County Paid Sick Leave Ordinance? Yes No Please explain why selected Yes or No above: 3

15 ANONYMOUS QUESTIONNAIRE Minimum Wage & Paid Sick Leave Employees in Wilmette DRAFT The Village of Wilmette has opted out of the Cook County ordinances mandating an increased minimum wage and paid sick leave. The Village is studying these issues and intends to reconsider them over the next several months. Your anonymous feedback will be important in helping the Village Board formulate its policy. This questionnaire is designed to help the Village Board understand the impacts of the County ordinances while ensuring anonymity and confidentiality to those who respond. The survey does not ask for your name, your job title, or any other identifying information. General Questions 1. In what city or town do you live: 2. How old are you: 3. What type of business or other entity do you work for in Wilmette: Retail Restaurant Service Professional Non-Profit Other (Please specify, in general terms and without identifying your specific employer, the nature of your employer's business or activity): 4. How long have you worked for this Wilmette employer (in years): 5. How many hours do you work during a typical week for this Wilmette employer:_ 6. How many other jobs (different employers) do you have and in what cities: 7. What is your total annual household income: 8. How many dependents do you claim on your income tax return: 9. Do you receive any type of governmental assistance to cover expenses: New Trier food pantry Low income tax credit Free/reduced school lunch Medicaid SNAP Social security Housing vouchers ACA premium reimb. Other, please specify 1

16 Minimum Wage Questions For any employer with one or more employees, the Cook County minimum wage ordinance mandates the following wage rates: July 1, 2017: $10.00 per hour July 1, 2018: $11.00 per hour July 1, 2019: $12.00 per hour July 1, 2020: $13.00 per hour July 1, 2021 and future years: Annual Increase based on Consumer Price Index (CPI) Effective July 1, 2018, the minimum wage rate of $8.25/hr. for tipped employees (consistent with existing State law) will increase annually per the increase in the CPI; annual increases shall not exceed 2.5%. The Cook County Minimum Wage ordinance does not apply to individuals under the age of 18 nor does it apply to employees who work less than 90 days. 1. What is your current hourly wage or annual salary: 2. Do you believe the Village of Wilmette should opt into the Cook County Minimum Wage Ordinance? Yes No Please explain why selected Yes or No above: 2

17 Paid Sick Leave Questions For any employer with one or more employees of all ages, the Cook County Paid Sick Leave Ordinance mandates up to 40 hours of paid sick time off for employees who work at least 80 hours over a 120-day period. Employees may accrue up to a maximum of 60 paid sick leave hours. Employers who already provide a minimum of 60 hours of paid time off (including paid vacation and holidays) are not required to provide additional time. 1. Does your job provide paid time off? Vacation Sick Holidays None If yes, how much paid time off can you take each year? 2. If no to question 1 above- if you are sick, do you ever come to work anyway because you need the money? Yes No 3. If no to question 1 above- if someone in your household who depends on you for care is sick, do you ever come to work anyway because you need the money? Yes No Not Applicable 4. Are there people in your household who need you to care for them when they are sick? Yes No 5. Do you believe the Village of Wilmette should opt into the Cook County Paid Sick Leave Ordinance? Yes No Please explain why selected Yes or No above: 3

18 Minimum Wage & Paid Sick Leave Questionnaire Businesses in Skokie, Evanston, Winnetka, Glencoe DRAFT THIS WILL BE A VERBAL INTERVIEW CONDUCTED BY THE VILLAGE S COMMUNITY DEVELOPMENT STAFF 1. City/Village of business: 2. Type of business: Retail Restaurant Service Professional Non-Profit Other (identify in general terms): 3. Number of years in operations at this location: 4. Number of full-time employees: 5. Number of permanent part-time employees: 6. Number of Employees working less than 90 days: Minimum Wage 1. Did you increase wages as a result of the Cook County Minimum Wage Law? Yes No If yes, how did the increased wages impact business operations? Improved employee moral Increased customer loyalty Fewer hours worked Other, please elaborate Recruitment of more qualified employees Higher prices Reduced profits 2. What has been the impact on employees due to the Cook County ordinance? (quantify if possible) 3. What has been the impact on customers due to the Cook County ordinance? (quantify if possible) 1

19 4. If you were to consider relocating or expanding your business, would the status of the Cook County Minimum Wage ordinance in the proposed location be a factor in your decision? Yes No Why? Paid Sick-Leave 1. Did you have to start providing paid sick time-off as a result of the Cook County Minimum Wage Law? Yes No If yes, how did this impact business operations? Improved employee moral Increased customer loyalty Fewer hours worked Eliminated other benefits Recruitment of more qualified employees Higher prices Reduced profits Other, please elaborate 2. How do you currently track and administer paid time off? Manually Computer Program Outsourced Other (please specify) 3. What has been the impact on employees due to the Cook County ordinance? (quantify if possible) 4. What has been the impact on customers due to the Cook County ordinance? (quantify if possible) 5. If you were to consider relocating or expanding your business, would the status of the Cook County Paid Sick Leave ordinance in the proposed location be a factor in your decision? Yes No Why? 2

20 Minimum Wage & Paid Sick Leave Questionnaire Municipal Staff DRAFT THIS WILL BE A VERBAL INTERVIEW CONDUCTED BY THE VILLAGE S COMMUNITY DEVELOPMENT STAFF 1. Have businesses expressed to the village/city opinions about the impact of the Cook County Ordinances (Minimum Wage and/or Paid Sick Leave) since the laws became effective on July 1, 2017? 2. Are you aware of any businesses that have closed since the Cook County ordinances have been in effect who have attributed their closure at least in part to the Ordinances? 3. Since the Ordinances went into effect on July 1, 2017, has there been a noticeable difference in the number of new business openings or closings? 4. Have businesses expressed concerns regarding scheduled future increases in the Cook County Minimum Wage? 5. Have the Cook County Ordinances impacted the recruitment of new businesses to your community (positive / negative / no impact)? 6. Do you have any statistical data that can be used to compare business activity before the ordinances to business activity after the adoption of the ordinances, such as sales taxes, business licenses, permits, etc.? 1

21 Minimum Wage & Paid Sick Leave Questionnaire Landlords and Brokers on the North Shore DRAFT THIS WILL BE AN ORAL INTERVIEW CONDUCTED BY THE VILLAGE S COMMUNITY DEVELOPMENT STAFF 1. What are the most important factors tenants look for when selecting a location for their business? 2. When discussing a location with a potential client/business, has the topic of the Cook County Minimum Wage or Paid Sick Leave Ordinances been brought up? If so, how often and is it seen as a positive or negative? Yes No Please elaborate. 3. If the Village were to opt-in to the Cook County Minimum Wage requirements, would it have an impact (positive or negative) in your opinion to attracting new tenants and businesses to Wilmette? Yes No Please elaborate. 4. If the Village were to opt-in to the Paid Sick Leave Cook County requirements, would it have an impact (positive or negative) in your opinion to attracting new tenants and businesses to Wilmette? Yes No Please elaborate. 1

22 Submitted by Brian Fabes Input on Surveys Below some initial thoughts on the draft surveys. The Working Group should discuss with an expert (or experts) how we craft questions that will provide reliable insights (vs. anecdotes and speculation) and how we do this in a way that is representative of each community. Regarding business representation, we likely want data that include representative distributions of business sectors, sizes, locations, and years in business. For employee and citizen surveys, representative likely includes geographic and income distribution. This is something the experts can help us design and implement. Wilmette Employees survey Introduction Would divide the survey, after general questions, into sections on minimum wage and paid sick leave, with a few key facts about each ordinance (as we do for employers). Length of employment Suggest starting at less than 1 year, to identify truly entry-level employees. Would add in demographics age of employee Primary source Suggest we ask for household income rather than whether respondent is the primary source, which might be interpreted differently by different respondents. More important, even if one person is primary what the second (or third) make in a household is critical for household stability. Looking for a new job I don t understand what we are trying to get at with this (and subsequent two questions) Impact of minimum wage We should delete. Speculation about future impact by people who are impacted by a policy are inherently inaccurate Impact of potential sick leave ordinance We should delete, for reason above Potential alternative questions: For both questions that ask about future impact of minimum wage and paid sick leave, we could provide a short summary of each ordinance and ask whether an employee or employer would be in favor or against opting in and why. No doubt we will get anecdotes and speculation in the why answer, but if we do the survey well we will at least get a representative assessment of the number (or % by segment) of employers and number of employees who are for and against opting in. Where we do get anecdotes and speculation, whether from employees or employers, we can identify these as such. January 14,

23 Wilmette Employers survey General questions Would add question about average tenure of employees (using same categories as we ask employees) Minimum wage cost to business Need to modify or delete. To be useful, we would need at a minimum information that allowed comparison of current gross and net margin vs. future gross and margin, at different wage rates. One could perhaps draw potentially meaningful conclusions, although these likely depend on many factors, such as the competitive environment, customer choices, etc. In some cases (e.g., in the case of paid sick leave) if the impact is extremely small on can conclude the impact is negligent. But this is not likely the case for minimum wage. Speculation of impact on business We should not ask speculative questions. As with employees, as described above, we might ask whether a business owner believes Wilmette should opt into each ordinace, and why. Paid sick time overview We should note in the summary that seasonable employees are, for the most part, excluded given. Tracking In addition to how payroll and time off are tracked, we should ask the cost (as % of payroll or % of gross and net margins). As those who use a 3 rd party no doubt use that 3 rd party for tracking hours, taxes, etc., we should word in a way that tries to get at the incremental cost for administering paid sick leave vs. other things that need to be and are tracked already. Last two speculative questions As above, would replace with opinion on whether Wilmette should opt in or not, and why. Landlords and Brokers Note on speculative questions for landlords and brokers We should ask our expert if asking speculative questions of landlords and brokers might provide helpful information. In this case, people are perhaps not speculating on the impact of a policy on themselves, which might lead to more useful information (unless they believe the policy will impact their rental businesses). General Would include brokers who work in North Chicago, which adopted almost identical ordinances a couple years ago, giving more time to observe effects, if any, of the ordinances. We probably need to give the same summary about the ordinances for landlords and brokers that we provide for employers and employees January 14,

24 Question on opting out Written in a highly biased way ( would opting in be a deterrent ). Just ask, as first question, whether the respondent thinks opting in to each ordinance would have an impact, positive or negative, and what would that be. Would be sure to ask a separate question about each ordinance. Obstacles Rather than obstacles, I would ask what are the most important factors potential tenants look for, and I would not provide a list, which is suggestive (sort of like leading the witness). Business climate Business climate is highly subjective and is also leading the witness, as written. I think it is another way of asking the first two questions and would rely on those and delete this one. Impact on business in north Chicago, Evanston, Skokie, Winnetka, Kenilworth We should ask several questions about whether the decision of these municipalities to implement both ordinances has impacted what people are looking for or where they look. How often has the subject comes up? Do potential tenants see it as a positive or negative? How does this differ by sector or size of business? Etc. Here we will have (hopefully) rich information from what actually happened when our neighbors changed their ordinances. Skokie, Evanston, Winnetka, and Glencoe Business Survey General Would also include North Chicago, given they have adopted similar ordinances. Also, would separate minimum wage from paid sick leave questions (they seem mixed). Paid sick leave administration Would word the same as Wilmette business question, and add the cost (if any) of administering paid sick leave (% of payroll or % of margin). As those who use a 3 rd party no doubt use that 3 rd party for tracking hours, taxes, etc., we should word in a way that tries to get at what is the incremental cost for administering paid sick leave vs. other things that need to be and are tracked. Would add question on experience with employee compliance to rules (getting at whether they use paid sick leave for non-sick time) Impact on employees or customers Would separate these so respondents think of both separately (as the impacts can be quite different) and again make sure we are differentiating minimum wage from paid sick leave. If possible without leading, might probe for both positive and negative impacts, and ask respondents to quantify if they can. Expansion Would delete. It is speculative. January 14,

25 Submitted by Therese Steinken Questionnaire for Business Owners and Other Covered Employers 1. Type of Business: Is the difference between Service and Professional Service obvious and well-known among business owners? Are these the terms they select when applying for their annual business license? 2. Suggest placing the question Years Your Business Has Operated in Wilmette directly after the Type of Business question. 3. Possibly ask if they also have a business location in another village/city in Cook County and whether or not that village/city opted out? 4. Break down Years Your Business... as follows: Less than years 6-10 More than Wage Rates (Current Workforce): The breakdown selections can be a little confusing and have the possibility of giving us inaccurate data. For instance, if an employer has 10 employees, all of whom make less than $11, that employer might put the number 10 in all three selections. The employer might rationalize that all 10 employees, in fact, make less than $11, $12, and $13, thus duplicating/triplicating the number of employees in total. Example for change in breakdown (which could then be applied to the questions for part-time and seasonal/temporary employees): Number of full-time employees who are paid: <$11/hr. $11 - $12/hr. $12-$13/hr. > $13/hr. 6. For the questions immediately following the wage rate breakdowns, I would add the term additional cost in wages so that it reads as follows: What would be the additional cost in wages for your Business annually if the minimum wage rate increased to $13.00 per hour on July 1, 2020 (assuming your work force remains the same)? 7. For the question asking about perceived impact, I am unclear as to why the question begins Based on your understanding of the Cook County Minimum Wage Ordinance. Also, this question would be easier to answer if it were presented as a check-off list. Example: What do you believe the impact on your Business operations would be if required to provide wages as mandated by the Cook County Minimum Wage Ordinance? No impact Attract and retain qualified employees Increase employee loyalty Increase goodwill in the community Increase local patronage Reduce profits

26 Increase prices Provide increase w/o being undercut by competitors Reduce employees hours Reduce number of employees I have purposely placed the more positive outcomes first. I m not saying it has to be this way, but I do think we have to be cognizant of the order in which we present these options. Additionally, if we do offer a list like that above, we might want to ask the business owners to select as many as they think might apply or rate the top three. Additional Consideration Regarding Wages I m sure that there are many businesses in Wilmette that have long-standing employees, all of whom make well over the wages being mandated by Cook County. Do we want to ask business owners to provide wages for new hires only? Wages after 6 months? Annual percentage of wage increases? Paid Sick Leave Questions 1. When asking if the business provides paid time off, the current questionnaire follows up with: If yes, what benefit is provided? Suggested change: If yes, please indicate how paid time off is accrued and whether it is sick leave, vacation, and/or holiday. 2. Question regarding tracking and administering payroll and time off: It is easier for the business owner answering the question to check off answers. Example: How do you currently track and administer payroll and time off Manually Computer Program ADT Other: 3. Final question: I would again omit the phrase: Based on your understanding... Suggested question: What do you believe the impact on your Business operations would be if required to provide paid sick leave as mandated by the Cook County ordinance? No impact Attract and retain qualified employees Increase employee loyalty Increase goodwill in community Increase local patronage Provide benefit w/o being undercut by competitors Allow employees to stay home when sick Allow employees to care for a sick family member Reduce profits Increase prices Reduce employees hours Reduce number of employees

27 Questionnaire for Employees 1. As asked above in #1, will the employees know the difference between a Service and a Professional Service? 2. Reword the question How many separate jobs... Suggestion: Do you work for any additional businesses? If so, in what city or village? 3. After the question asking whether or not the employee receives paid time off, do we want to ask (and is it germane) if they receive any additional benefits; i.e., health insurance, dental insurance, 401(k) plan? 4. I would reword the sentence at the bottom of page 2 as follows: If you do not currently receive paid time off from your Wilmette employer, please answer the following two questions.

28 Verbal Interview to Businesses in Skokie, Evanston, Winnetka & Glencoe 1. Replace Location of Business with City/Village of Business. 2. After Type of Business ask: How many years operating business in city/village? 3. Increased wages impact on business operations: It might be easier for the person conducting the verbal interview to have a list that they can check off; such as: Improved employee morale Recruitment of more qualified employees Increased customer loyalty Higher prices Fewer hours worked Reduced profit margin 4. Separate the first question on page 2 into 2 questions. The answers will be very different and it will be easier for the question-taker to write down the answers. Examples: What has been the impact on your employees due to the Cook County ordinances? What has been the impact on your customers due to the Cook County ordinances? 5. When asking the businesses about tracking the paid sick leave benefit, a list of choices should be available for the question-taker; i.e., Manually Computer Program ADT Other: 6. Consider asking the businesses if they have additional businesses in other Cook County villages that opted in? opted out?

29 Additional Verbal Question for Landlords, Brokers, and Municipal Staff Do you think it reflects positively on the Village of Wilmette that its businesses, residents, and trustees support employees of its local businesses by opting in to the Cook County ordinances regarding a higher minimum wage and paid sick leave?

30 From: To: Subject: Date: George Rafeedie Braiman, Michael Re: Reminder- Working Group- Draft Questionnaires Tuesday, January 16, :17:32 PM Michael - This looks really comprehensive. Thanks for putting together. I can t think of anything else to ask. Few thoughts, though: Maybe we can discuss a short survey that perhaps the community can fill out regarding this issue. I would hope that it wouldn t to be as in-depth as what the Park District did for the lakefront/beach house improvements, but getting the community s feedback (beyond the vote that took place in the past), would be valuable. In some way, I believe we have to have some documentation of what the living wage is for Cook County and define living wage for people we are surveying. In general, I think some of these questions are too wordy. Need to be more concise and to the point. That s my feedback right now. Hope helpful. George George Rafeedie CoWorkers LLC Another Place to Work 1167 Wilmette Avenue, Suite 201 Wilmette, IL grafeedie@coworkersllc.com On Jan 16, 2018, at 9:51 AM, Braiman, Michael <braimanm@wilmette.com> wrote: [Due to the Illinois Open Meetings Act, Members of the Working Group are Blind Carbon Copied to Prevent Reply} Good Morning,

31 Just a friendly reminder to please send me any comments you have on the draft minimum wage/paid sick leave questionnaires to me today. Questions are attached. Thanks, Mike From: Braiman, Michael Sent: Thursday, January 11, :45 PM To: Braiman, Michael <braimanm@wilmette.com> Cc: Prejzner, John <prejznerj@wilmette.com> Subject: Working Group- Draft Questionnaires [Due to the Illinois Open Meetings Act, Members of the Working Group are Blind Carbon Copied to Prevent Reply} Good Evening, Based on discussions at our first Working Group meeting, we have prepared the attached draft questionnaires to serve as a starting point in formulating the questions the Group will ask of various sources. These questions are subject to revision and your input, as well as that of the community (we will share this same document with interested parties), is welcomed and encouraged. Please submit to me any suggested changes/additions/deletions you may have by the end of the day on Tuesday, January 16 th. We will then revise the questionnaires and circulate them in advance of our January 22 nd meeting. Please feel free to contact me at any time with questions or concerns. Thank You, Mike Michael Braiman Assistant Village Manager Village of Wilmette <Draft Questionnaires- Minimum Wage and Paid Sick Leave.pdf>

32 LWV- Wilmette Feedback on Questionnaires Thank you for sharing the questionnaires and giving us the opportunity to provide feedback. We have some general comments and some specific feedback. We have numbered the questionnaire and scanned it for you for ease of reference. For future discussion and feedback, we suggest numbering questions. The questions should be examined for bias. Language in many questions is suggestive of responses or outcome and several questions actually suggest possible responses. Several questions use the phrase Based on your understanding of the Cook County Minimum Wage Ordinance.... This phrase implies is misleading and that there is an interpretation of the ordinance. A summary of the points of the ordinances has been provided for reference so that each respondent is operating with knowledge of the requirements of the ordinance. The respondents understanding of the ordinance is not relevant. Consider adding these questions to the end of each questionnaire in appropriate sections: A) Please list any specific positive expectations you have for the outcome of raising the minimum wage? B) Please list any specific concerns you have for the outcome of raising the minimum wage? C) Please list any specific positive expectations you have for the outcome of providing earned paid sick leave? D) Please list any specific concerns you have for the outcome of providing earned paid sick leave? The Businesses represented by the survey respondents should match the distribution of businesses in the community. Questionnaire 1: Business Owners and Other Covered Employers General Questions Section: 1. Question 1: Do the choice of business types match business types on the village s business licenses? This will allow proper description of the businesses and ensure a representative sample of businesses has participated. Add Not-for- Profit as a category. 2. Question 1: Consider asking additional demographic questions that ensure participation by a representative sample of business owners/employing enterprises. This might include annual sales, number of locations, local vs. national business, etc. to the extent that such aggregate data about Wilmette businesses is available. 3. Question 1: Request the title of the person responding to the questionnaire. 4. Question 2: That question should be worded in way to elicit the specific number of people in the business who would be impacted by a change in the minimum wage. 5. Question 2: Wording should not be seasonal/temporary - the wording for this question must match the ordinance terminology. This should be changed throughout all questionnaires. 1

33 6. Question 3: Just ask how many years they have been in Wilmette; groupings of number of years should occur in analyses if necessary, not in data collection - don t set up tranches. Also, ask if the business has other locations outside Wilmette. If yes, ask how many and locations. The same questions as 1 and 2 should be asked for locations outside Wilmette. Minimum Wage Questions Section 7. Question 1: a. Change: What is the lowest wage rate paid to a full time employee in your business to What is the starting hourly wage for a worker in your business? b. Change categories to: between $ $10, $10 - $11, etc. - otherwise the categories overlap. c. Ask How many/what percent of your employees are under 18? d. Ask How many/what percent of your employees are tip workers? 8. Remove both questions about the annual cost to business (Questions 2 and 3) as this calculation would require extensive consideration of numerous factors and is too laborious. 9. Remove the last question (Question 4) because it asks the respondent to predict outcomes without using any data. This speculative information is not useful to the committee. 10. Add: Will your business institute any changes in response to an increase in the hourly cost of labor? Please list any changes 11. Add: Are you aware of anyone who has left your employ primarily to earn higher wages in a nearby town that has enacted the ordinances? Paid Sick Leave Questions Section: 12. In Question 1, put definition in the question, in parentheses after paid time off. 13. Questions 1, 2 and 3, after If yes, then specify the type of response you seek, for example: Please detail the benefit provided including number of days and hours, how and when it can be used, if it is accrued or a yearly amount, if it carries over year to year. 14. Question 4: Make separate questions, one about about payroll and one about benefits. Multiple choice options are appropriate here if you also include the option other: please specify. 15. Remove Question 6 for same reason as listed in #9 above. If this type of information is considered important, substitute C) and D) from above. 2

34 Questionnaire 2: Employees Questionnaire General Questions: 1. Question 2: Ensure that business category choices match business license categories. 2. Question 6: Rephrase: What percentage of your total household income do you contribute from all of your jobs? 3. Question 7: Move ahead of question 6 4. Question 8 and 9: Delete 5. Question 10: Delete 6. Question 11: Reword: Does your job provide paid time off if you are sick? 7. Question 12: Reword: If yes, how much paid time off can you take per year? 8. Question 13: Reword: Are there people in your household who need you to care for them when they are sick? 9. Move Questions 14 and 15 to after Question 12 and say, If no, 10. Question 14: Split into 2 separate questions: a. If you are sick, would you ever come to work anyway because you need the money? b. If someone in your household who depends on you is sick, would you ever come to work anyway because you need the money? Question 15: Strike if at all. Rephrase: How would it affect your life if your employer was to provide paid sick leave? Ask if the employee receives any assistance to cover expenses. Ask this in the form of a multiple choice question. Some possible choices: food pantry, housing voucher, free or reduced school lunch, medicaid, SNAP, etc. Questionnaire 3: Businesses in Skokie, Evanston, Winnetka, Glencoe This questionnaire poses numerous problems and is likely to yield statistically useless data. We recommend not spending time and money on administering a survey to businesses in surrounding communities. Information like this should be gathered from published peer-reviewed studies. Questionnaire 4: Municipal Staff We have the same feedback for this questionnaire as we have for Questionnaire 3. Questionnaire 5: Landlords and Brokers These questions will elicit opinions only and not statistically valid data. Opinions should not be used to assess the validity of opting-in or -out of the ordinances. 3

35 Submitted by LOWV

36

37

38

39

40

41 From: To: Cc: Subject: Date: Joseph Lunkes Braiman, Michael Prejzner, John Re: FW: Working Group- Draft Questionnaires Tuesday, January 16, :09:08 AM Hello Michael, Thank you for providing me an opportunity to comment. I am not proposing any micro management changes to the questions. However, I am challenging the solicitation of "Opinions" from public sector employees (Village Staff in North Shore Communities), real estate brokers and landlords. One can argue that the Cook County minimum wage and paid sick leave ordinances are an ideological political position designed to impose more Government control over private sector employment practices. Undeniably, there was plenty of union leadership influence and support behind the two Illinois State ballot advisory referendums which were, arguably, an intentional precursor of support for the Cook County ordinances. The agenda is very straight forward, separate the employee from the employer by imposing extensive labor laws and the employee will become beholden to the political class. One doesn't have to look any further that the social progressive societies of France, Italy and other European countries (although recent electoral and governmental changes might portend a change in French societies thinking). Unless North Shore village staffs have conducted empirical studies, I recommend you do not solicit what is basically opinions derived from conjecture, suppositions, personal beliefs and the inherent sampling biases that always exists and are magnified if the survey is informal. Even the reasoned study of the University of Washington is largely discredited by supports of the ordinances, so why retreat to informal opinion of Government employees who, however good intention, are not employed by the rough and tough private sector. Similarly, real estate brokers and property owners have no specific knowledge of the impact of how these ordinances would impact employees and employers. Knowledge gained through lease and rental negotiations is compromised by bias and disinformation. If the Working Group insists on including village employees, real estate brokers and commercial property owners, then I recommend you open the questionnaire to all Wilmette residents. I suggest you include questions like: Do they shop in lower tax jurisdictions or on the internet to avoid higher prices typically associated with smaller merchants or incremental sales taxes? Ask village employees living outside Cook County if they shop locally in Wilmette for household and grocery staples, clothing... The foregoing is not intended to diminish the very legitimate concerns of fellow citizens and Government employees that safety nets and paths to opportunities need to exist for the more vulnerable members of society. In my opinion the questions are: Should the private sector be forced or coerced in to providing safety nets and income redistribution? Should not elected Government officials be held responsible and accountable for spending the electorate's income in pursue of these goals and if so, aren't these ordinances just an avoidance of fiscal accountability while imposing additional rent on our private sector economy by our government? So my recommendation is focus exclusively on the two effected parties: Wilmette employees

42 and employers. (I am lukewarm to the idea of polling other North Shore business people because in the end, they have no immediate exposure or vulnerability to our local economy.) I think it is an excellent idea to poll local employees. But we should not consider the two ordinances and "living wage" arguments in a vacuum. The Working Group ought to consider the impact of other existing Federal, State and local jurisdictional laws and administrative programs designed to protect and provide a hand up to the targeted employees. These laws and programs include, but certainly are not limited to: i) the low income tax credit, ii) the child tax credit, iii) supplemental nutrition assistance programs, iv) school breakfast and lunch programs for lower income students, v) food pantries such as New Trier Township's pantry program, vi) social security, vii) social security supplemental security income, viii) medicaid, ix) affordable care act premium reimbursements, ix) tax payer subsidized land line and cellular phone service for low income consumers, x) vocational training programs xi) educational assistance programs. I suggest the survey be expanded to include a check list noting if they are receiving any of these benefit programs, if they are a dependent or how many dependents they are caring for, and marital - household income status. It would not be too difficult to prepare a holistic estimate of the employees total private sector and Governmental income and assistance. In summary, please do not think of me as a heartless person. I am in full support of providing both Governmental and private sector charitable assistance, safety net programs, live skills assistance and other incentives to improve workplace skills and earnings potential. As part of our social contract we have a moral obligation to assist these and even more vulnerable members of our society. However, viewing these ordinances in the abstract, without any consideration of other laws and programs designed to assist lower income wage earners, is disingenuous. Who wouldn't like to be paid more via a higher wage and/or PTO. I certainly would, so would you and your village colleagues. However this is not a free good, all assistance is provided at a cost to society and in this case our Government is indiscriminately pushing this cost to employers and consumers. The goal of the survey should be to empirically determine if there is a legitimate societal need in Wilmette and if so, how prevalent and significant are these needs. If properly identified and determined, there might be more effective ways of addressing these needs; perhaps by a Wilmette ordinance providing targeted assistance to local employees? The precedent already exists with our local low income housing assistance programs. Thank you for considering my perspectives and opinions. Respectfully Joe Lunkes On Fri, Jan 12, 2018 at 2:34 PM, Braiman, Michael <braimanm@wilmette.com> wrote: Good Afternoon, Based on your previous interest in the Village s Minimum Wage & Paid Sick Leave Study, I

43 From: To: Cc: Subject: Date: Attachments: John Phelan Braiman, Michael Julie Yusim - Wilmette Chamber of Commerce (julie@wilmettekenilworth.com) Minimum Wage & Paid Sick Leave Questionnaires Monday, January 15, :31:02 PM image008.png Mike, Here are my suggestions on the Draft Questionnaires. 1. Anywhere you call out opt in or opt out, Capitalize the words or put them all in CAPS/bold so someone doesn t misread the reference. 2. Employee Questionnaire: 2 nd to last question about how they handle sickness or family member sickness: Consider splitting this into two questions so they can elaborate on their own sickness and on the sickness of a family member. No other comments. Thanks for doing this. Sincerely, John F. Phelan President (and Wilmette Chamber Board Member) SpeedPro Imaging North Shore 8246 Kimball Avenue Skokie, Illinois o c ß Click to have Hue fetch your files! LET US HELP YOU WITH: Vehicle Wraps * Window Graphics * Floor Graphics * Wall Graphics * Banners * Banner Flags * Decals * Canvas Prints * Trade Show Displays * Banner Stands * Vehicle Magnets * Indoor/Outdoor Signage

44 From: To: Subject: Date: Thomas Scanlan Braiman, Michael minimum wage survey Tuesday, January 16, :08:01 AM Mike, Good morning. Here are my suggestions for the minimum wage survey. Page 4. "How much would it cost your Business annually if the minimum wage rate increase..." I suggest you revise this question from a $ to a % increase. As you wrote in your , current employers may be reluctant to answer many of the questions, such as this private issue, so a % response is more likely. Also, a $ response may seem low, but it may be a large % increase. For example, an employer has only 1 employee who works 30 hrs/week, and the $xxxx.xx increase appears low, but the % increase relative to the company's aggregate wages and sales is high. In addition, there are no Employer questions regarding the effect on their business when the next recession occurs. For example, "Based on your experience, during the next recession, what effect will that have on your business and employees if the County ordinance is applied?" If you want to add a recession question to the Employees, here is an example, "Have you been employed with your current employer during a recession or significant reduction in sales? If so, what, if any, effect did it have on your wages and benefits?" Thanks, Tom Thomas C. Scanlan 1005 Chestnut Ave Wilmette IL Tel: tscanlan@surplusrecord.com This has been scanned for spam and viruses by Proofpoint Essentials. Visit the following link to report this as spam:

45 From: To: Subject: Date: Attachments: lourdes cornelius Braiman, Michael Fw: Working Group- Draft Questionnaires Tuesday, January 16, :11:06 AM Draft Questionnaires- Minimum Wage and Paid Sick Leave.pdf Hi Michael, Thanks you for sending the draft survey's out so quickly. I think the Working Group did a really nice job in capturing questions for the various sources that will complete the surveys. Having said that I noticed that the residents of Wilmette are not listed as a source. I hope that was an oversight as I believe understanding the customers decision to patronize our community or other communities who opted-in should be important to the Village Trustees. A suggestion that I think might insure clarity is to define, in the opening paragraphs, the age and number of hours that this ordinance pertains to. Lastly, the CPI is mentioned in the survey. I would write out it's entire name (Consumer Price Index) and in parenthesis include their website so that the business owner can take a look at the rates just in case they don't normally use the CPI. That wraps up my comments! Thank you for working on this. Lourdes From: Braiman, Michael <braimanm@wilmette.com> Sent: Friday, January 12, :34 PM To: Braiman, Michael Cc: Prejzner, John Subject: FW: Working Group- Draft Questionnaires Good Afternoon, Based on your previous interest in the Village s Minimum Wage & Paid Sick Leave Study, I am forwarding to you an sent yesterday to the Working Group which contains a series of draft questions to ask various sources (business owners, employees, etc.). We welcome your review and feedback of the documents. To help facilitate a productive Working Group meeting on January 22 nd (7:00pm at Village Hall), any suggestions that you can get to me by Tuesday, June 16 th would be appreciated. Thank You, Mike Michael Braiman

46 MEMORANDUM To: Minimum Wage & Paid Sick Leave Working Group Michael Braiman, Assistant Village Manager John Prejzner, Assistant Director of Administrative Services From: Gina Kennedy Date: January 17, 2018 Re: Comments regarding draft questionnaires Draft Questionnaire for Business Owners and Other Employers With regard to the last question in the second section of the questionnaire, (concerning minimum wage changes), on page 2, I would shy away from the phrase "based on your understanding," as a respondent might misunderstand the Ordinance and thus misjudge the impact of the Ordinance on his or her business. I suggest asking something like "how would the Ordinance, as described above, impact you business operation...?" Also, I also would not suggest possible answers to this question, as I have generally found that leading questions often elicit unreliable answers. I suggest adding a question to this same section asking whether the respondent has considered the impact of recent federal tax law reductions on the respondent's business and on his or her ability (and willingness) to increase employees' wages or make new investments in the business in light of these reductions. To the third section of the questionnaire (regarding paid sick leave) I suggest asking something like the following: In the course of their duties/responsibilities, do your employees: Prepare or serve food to patrons or customers? Provide health care to patients or other persons? Have face-to-face interactions with members of the public? With regard to the last question in this same section, I would again shy away from using the phrase "based on your understanding," and avoid suggesting possible answers to this question.

47 Draft Questionnaire for Employees I recommend not asking some of the questions, as I am not sure whether they are relevant to the Committee's inquiry, and some may seem intrusive or offensive to certain respondents. In particular, I would not ask whether the respondent is "the primary source of income" for his or her household or whether the respondent has dependents for whom they have caretaking responsibilities. Because questions like these have historically been tied to disparities in pay between men and women, they are troubling to many women. Additionally, I wonder how relevant the question regarding multiple jobs is to the Committee's inquiry. I recommend not asking whether the respondent is actively looking for a new job, and I would re-word the question which follows it: "If you are now or were in the future to look for another job, would either of the following be important to you in your job search?" Finally, I would recommend adding the following questions: In the course of your duties/responsibilities as an employee, do you: Prepare or serve food to patrons or customers? Provide health care to patients or other persons? Have face-to-face interactions with members of the public? Draft Questionnaire for Businesses Outside Wilmette I suggest adding a question to asking whether the respondent has considered the impact of recent federal tax law reductions on the respondent's business and his or her ability (and willingness) to increase employees' wages or make new investments in the business in light of these reductions. Draft Questionnaire for Municipal Staff I am puzzled by the question regarding what strategies businesses are utilizing to cope with the impact of the Ordinance. What is meant by "strategies"? Is it likely that the staff of our sister communities would be able to answer this question? I would re-word the fourth question. Rather than ask "what concerns have businesses expressed regarding..." I would recommend asking "have businesses expressed concern regarding..." With regard to the last question, what is the relevance of chamber of commerce membership to the Committee's inquiry?

48 Draft Questionnaire for Landlords and Brokers With regard to the next to last question, concerning primary obstacles to attracting business tenants, I would recommend re-wording the reference to "lowwage employees" to "suitable employees." I would also shy away from suggesting possible answers, again because I have generally found that leading questions often elicit unreliable answers. If you think there is value in suggesting answers, however, I think the list should be more comprehensive. Based on what I have heard and read over recent years, the lack of adequate parking in some businesses areas, the unattractiveness of some of our business districts, the fragmented nature of our business districts, the over-saturation of the restaurant market (particularly the over abundance of certain kinds of restaurants) and certain types of retail businesses in Wilmette, and overly high rent are sometimes cited as reasons for the abundance of empty storefronts in Wilmette. I also think that systemic issues, like the growth of e-commerce, have had an enormous (and lamentable) negative impact on brick and mortar retail businesses everywhere, including in Wilmette. Once the list of potential obstacles gets longer, however, it seems of even less utility.

49 Date: January 18, 2018 To: From: Subject: Minimum Wage & Paid Sick Leave Working Group Michael Braiman, Assistant Village Manager John Prejzner, Assistant Director of Administrative Services Final Report Template and Potential Questions / Sources of Data Brian Fabes has prepared the attached template of what could be contained in a final report to the Village Board which can help guide the Working Group as it moves forward in its study. Per Mr. Fabes, his experience in outlining a final report early in such a process can help focus a group, avoid surprises at the end, and identify potential areas of disagreement early, so the group can productively work through them. Chair Jacoby, Assistant Village Manager Braiman, and Mr. Fabes met to review the draft template and agree that it provides a solid foundation for starting the group s work. Time permitting at its January 22 nd meeting, the Working Group will be asked to review the document and begin working toward a consensus on the potential questions and sources of data as proposed in the attachment.

50 Minimum Wage and Paid Sick Leave Working Group January 14, 2018 To assist the Village Board and the Wilmette community in determining whether Wilmette should opt in or out of the County ordinances on minimum wage and paid sick leave, the Working Group has been tasked with identifying the information that should be considered in making this determination. Based on the first Working Group meeting and community comments during and after the Group s first meeting, below is a potential framework for organizing the Working Group s recommendation of the information the Village Board should consider, divided into the following sections: Ordinance FAQs (page 1) Types of Data (page 2) Potential Questions for Wilmette Residents (page 2) Potential Questions and Sources of Data Minimum Wage (page 3) Potential Questions and Sources of Data Paid Sick Leave (page 7) List of Appendices (page 10) ORDINANCE FAQs In comments and questions from the public, it became apparent that important details of each ordinance are not well understood. To fulfill our charge of providing relevant information, a summary of the basic facts seems required as a starting point. Village staff have prepared a summary of each ordinance (Appendix I), which the Working Group night want to augment, as other questions about the ordinances arise. TYPES OF DATA For each ordinance and question posed, the Working Group we can collect information of different types: Type A: Facts, data, and analyses about our local situation Type B: National studies of (a) impact of similar policies previously implemented elsewhere; and (b) benchmark on the shared / differing characteristics of such policies Type C: Surveys about current practices and opinions Type D: Surveys that speculate about the impact of future changes DRAFT 1 DRAFT

51 As pointed out in the Group s first meeting, the usefulness of different types of information varies. Types A data is inherently the most objective and applicable. The Working Group should strive to gather this type of information whenever possible. Type B information should also be given significant weight, so long as the Working Group considers whether there is a reason Wilmette is significantly different, in a way that would challenge the results, from another geography. Surveys (Type C) can be very helpful, if constructed carefully to ensure that results are representative and relevant. To do this, the Working Group should (and plans to) talk with experts in survey design and administration. In contrast to Types A, B, and C, surveys that ask respondents to speculate about the potential impact of future changes (Type D) are inherently less reliable, as these speculations are typically determined by the respondents underlying opinion about the proposed policy (whether for or against). Such opinions are valuable (as captured through Type C surveys) and should be considered, but analysis of policy implementation elsewhere (Type B) is more likely to provide an accurate understanding of the potential impact of a proposed policy. POTENTIAL QUESTIONS OF WILMETTE RESIDENTS Questions 1 and 2: ARE YOU IN FAVOR OF OPTING INTO THE COOK COUNTY ORDINANCE ON MINIMUM WAGE? ARE YOU IN FAVOR OF OPTING INTO THE COOK COUNTY ORDINANCE ON PAID SICK LEAVE? Why does this matter? One of the most important piece of information for the Working Group to gather for the Board is the view of the citizens of Wilmette. A survey of the community (Appendix II) will be conducted. How, when, and what questions to ask of residents, and what background to provide, needs to be discussed with the Working Group. DRAFT 2 DRAFT

52 POTENTIAL QUESTIONS AND SOURCES OF DATA MINIMUM WAGE Question 1 WHO ARE THE WORKERS (I.E., DEMOGRAPHICS AND WHY THEY WORK) WHO WOULD BE IMPACTED BY A CHANGE IN MINIMUM WAGE? Why this Matters The impact of minimum wage is significantly different for a high school student in her first job working weekends to save for college than for an adult who is trying to support a family working two minimum wage jobs. Desired Data: Demographics (age, longevity in current position, household income) of low-wage workers in Wilmette, by industry, firm size, location, and wage level as available) Potential source Data Type Comment IDES A Unclear what level of aggregation (state, County, etc.) is available and instructive for Wilmette See Appendix III National data B Unclear what level of aggregation (state, County, etc.) is available and instructive for Wilmette Surveys of Wilmette business owners and employees C See Appendix III Unclear whether businesses or employees will provide information. As with all Type C data, survey must be designed and administered with care to provide relevant and representative information. See Appendices IV & V Question 2 WHAT IS THE COST OF LIVING IN THE CHICAGOLAND REGION VS. THE STATE? Why this Matters The primary rationale for a minimum wage that is different in one region of a state vs. another is that the cost of living (and hence what defines a living wage ) can differ by region. DRAFT 3 DRAFT

53 Desired Data: Cost of living (regional price parity) in Wilmette vs. other parts of Illinois Potential Source US Dept. of Commerce / Bureau of Economic Analysis Data Type A Comments Regional Price Parities (RPPs) measure the differences in price levels across states and metropolitan areas for a given year and are expressed as a percentage of the overall national price level. All items RPPs cover all consumption goods and services, including rents. Readily available on BEA web site ( See Appendix VI. Question 3 WHAT CONSTITUTES A LIVING WAGE (IN TERMS OF HOURLY RATE EQUIVALENT) FOR WORKERS LIVING IN COOK COUNTY? Why this Matters One rationale for a higher minimum wage is that those who work full-time and depend on work to support their families should not be living in poverty or rely on public assistance; i.e., earn a living wage. Desired Data: Living wage level for family of 4 (or for different family structures) in Cook County vs. current and proposed minimum wages Potential source MIT Living / Minimum Subsistence Wage Calculator Data Type A Comment The MIT model is a market-based approach that draws on geographically specific expenditure data related to a family s likely minimum food, childcare, health insurance, housing, transportation, and other basic necessities (e.g. clothing, personal care items, etc.) costs to determine the minimum employment earnings necessary to meet a family s basic needs while also maintaining self-sufficiency. The model accounts for only the basic needs of a family, and does not allow for what many consider the basic necessities, for example pre-prepared meals or those eaten in restaurants. It does not include money for entertainment nor does it DRAFT 4 DRAFT

54 allocate leisure time for unpaid vacations or holidays. It also does not provide a financial means for planning for the future through savings and investment or for the purchase of capital assets (e.g. provisions for retirement or home purchases). The model is the minimum income standard that, if met, draws a very fine line between the financial independence of the working poor and the need to seek out public assistance or suffer consistent and severe housing and food insecurity. See Appendix VII Question 4 WHAT MIGHT THE IMPACT OF INCREASING THE MINIMUM WAGE BE ON BUSINESSES AND EMPLOYEES IN WILMETTE? Why this Matters The most common concern with raising the minimum wage is that higher labor costs will force businesses to reduce employment, close, move, or not open in Wilmette. Desired Data: There are several possibilities for gathering pertinent insights Potential source IDES Where Workers Work Report Data type A Comment In December of 2014, the City of Chicago passed a minimum wage ordinance that required annual increases in the minimum wage in Chicago starting July 1, 2015 (from $8.25/hour for tipped employees, as is the case today in Wilmette, to $10.00 in 2015, $10.50 in 2016, and $11.00 in 2017). The Where Workers Work report provides data on employment in Chicago, its neighborhoods, and surrounding municipalities and counties. By comparing Chicago to the overall region, or border neighborhoods with bordering municipalities, these data provide evidence of the local impact of raising the minimum wage on employment. See Appendix VIII DRAFT 5 DRAFT

55 Literature on the impact of minimum wage on employment Survey of landlords and brokers who work on the North Shore and North Chicago Survey of businesses owners in North Chicago and North Shore municipalities that have opted in B C The economic studies distributed to the Working Group members, while not determinative, are highly relevant to the question of impact (as pointed out at the Group s first meeting). They show that while there is no clear consensus among economists about the impact of minimum wage on employment, the conclusions fall into 3 categories (1) no impact; (2) negative impact for certain businesses (e.g., lowquality restaurants) or a small percentage of workers; and (3) slight positive impact on overall economic growth. The Working Group can share these studies with a short summary (like the one above) and/or Identify meta-analyses (reviews of multiple studies) that would help answer the question Ask local business school faculty to comment (as was offered at the first meeting) Ask the Federal Reserve Bank, which has a team of economists with expertise in the Chicago Economy, to comment. See Appendix IX Brokers and landlords have insight on what businesses are saying when they look to locate in Wilmette (which has opted out of both ordinances) and other suburbs and Chicago who have opted in. Business owners in municipalities and North Chicago who have opted in may have similar insights. As with all Type C data, surveys must be designed and administered with care to provide relevant and representative information. See Appendix X and XII DRAFT 6 DRAFT

56 POTENTIAL QUESTIONS AND SOURCES OF DATA PAID SICK LEAVE Question 1 WHO ARE THE WORKERS (I.E., DEMOGRAPHICS AND WHERE THEY WORK) WHO WOULD BE IMPACTED BY A CHANGE IN PAID SICK LEAVE POLICY? Why this Matters While the health impacts of paid sick time affect all workers, in some cases concerns are greater for workers who come into contact with customers and those who have children who are sent to schools sick because a parent cannot take a day off of work. Desired Data: Demographics (age, years of work experience, household make-up) of those who work without paid sick leave benefits in Wilmette, by industry as available. Data Potential source Type Comment IDES A Unclear what level of aggregation (state, County, etc.) is available and instructive for Wilmette (Appendix III) National data B Unclear what level of aggregation (state, County, etc.) is available Surveys of Wilmette business owners and employees C and instructive for Wilmette (Appendix III) Unclear whether businesses or employees will provide information. As with all Type C data, survey must be designed and administered with care to provide relevant and representative information. See Appendices IV & V Question 2 WHAT IS THE COST OF PROVIDING PAID SICK LEAVE TO EMPLOYEES? Why this Matters Employers have voiced concern about the cost of paying employees when they stay home sick. Data Potential source Type Comment Cost model A CCA analysis that shows cost of providing benefit. Appendix XI Survey of businesses owners in North Chicago and North Shore municipalities that have opted in C Design carefully to ascertain the long-term effect on labor costs due to providing paid sick leave at level mandated. If possible try to differentiate immediate costs in paying for sick days vs. savings through lower turnover. Appendix XII DRAFT 7 DRAFT

57 Question 3 WHAT IS THE INCREASE IN COST DUE TO THOSE WHO CHEAT? Why this Matters Employers have voiced concern about employees who will take off time when they are not actually sick or caring for a sick family member Potential source Data Type Comment Cost model A Current CCA analysis assumes assuming 40-80% usage of the benefit. Re-calculate assuming all employees used 100% of benefit. Studies of paid sick leave Survey of businesses owners in North Chicago and North Shore municipalities that have opted in B C Appendix XIII Studies of other cities of the rate of employee abuse of paid sick leave benefits and costs Appendix XIII As with all surveys, work with experts to design for representative and relevant information Appendix XII Question 4 WHAT IS THE COST OF ADMINISTERING PAID SICK LEAVE PROGRAM? Why is this important Employers have voiced concern about the cost of tracking and administering paid sick leave Potential source Survey of businesses owners in North Chicago and North Shore municipalities that have opted in Survey of Wilmette businesses Data Category C C Comment Design carefully to understand (a) what tools are being used to track and report; and (b) increase in costs to do the tracking; important to gather by size of business Appendix XII For those Wilmette businesses that already provide the benefit, we can ask how it is administered and the cost Appendix IV DRAFT 8 DRAFT

58 Question 5 WHAT IS THE BENEFIT TO VILLAGE RESIDENTS, TEACHERS, STUDENTS, PATRONS, ETC., OF PROVIDING PAID SICK LEAVE TO EMPLOYEES? Why is this important? The primary reason for mandating paid sick leave is to improve public health Potential source Studies of the impact of paid sick leave on public health Data Category B Comment Provide 6-8 studies that analyze - Sickness in school, at work, among patrons of all types of establishments - Impact on healthcare costs Appendix XIV Question 6 WHAT IS THE BENEFIT TO EMPLOYEES OF PROVIDING PAID SICK LEAVE? Why is this important? Another stated benefit of providing paid sick leave is so that employees can be healthier or help care for their families (e.g., stay home when a child is sick) Potential source Studies of the impact of paid sick leave o employees Surveys of employees of Wilmette businesses and employees Survey of businesses owners in North Chicago and North Shore municipalities that have opted in Data Type B C C Comment Provide 2-3 studies that show, for those with paid sick leave - Greater use of preventive care - Lower healthcare costs Appendix XV Same caution as with all surveys regarding representative samples. Here we are asking employers and employees who already provide this benefit its impact is on their employees Appendices IV and V Same caution as with all surveys regarding representative samples. Here we are asking employers who already provide this benefit its impact is on their employees Appendix XII DRAFT 9 DRAFT

59 APPENDICES I Content Basics of each County ordinance Questions addressed N/A Next steps to gather Village Staff to modify existing summary, with questions that arise in the Working Group s meetings and correspondences II Survey of Wilmette citizens WR 1 & 2 To be discussed with Working Group when and how to ascertain residents views III IDES and/or National data on demographics of low-wage workers in Wilmette MW 1 PSL 1 Meeting with IDES 1/16 IV V VI VII VIII IX X XI XII Survey of Wilmette business owners Survey of employees of Wilmette businesses Cost of living Regional Price Parity MIT Living Wage calculations for Cook County and back-up explanation Where Workers Work report and analysis Literature on the impact of minimum wage on employment Survey of landlords and brokers who work on North Shore and North Chicago Analysis of cost to employers for providing mandate paid sick leave Survey of businesses owners in North Chicago and North Shore municipalities that have opted in MW 1 PSL 1 PSL 4 PSL 6 MW 1 PSL 1 PSL 6 MW 2 MW 3 MW 4 MW 4 MW 4 PSL 2 MW 4 PSL 2 PSL 3 PSL 4 PSL 6 Village staff developing. Consult in survey experts to ensure results are informative and representative Village staff developing. Consult in survey experts to ensure results are informative and representative None None None Discuss short summary statement in Working Group meeting. Potentially invite Chicago Fed and/or Kellogg faculty to draft short summary statement Village staff developing. Consult in survey experts to ensure results are informative and representative Most Information in Working Families Task Force report. Village staff developing. Consult in survey experts to ensure results are informative and representative DRAFT 10 DRAFT

60 XIII Impact of employees who might cheat by using paid sick leave when they are not sick or caring for sick family member XIV Studies of the impact of paid sick leave on public health XV Studies of the impact of paid sick leave o employees PSL 3 Recalculate WFTF model to assume 100% use of benefit; Report on San Francisco experience with paid sick leave policy abuse PSL 5 PSL 6 Most have been submitted. Check for completeness and put in one place Most have been submitted. Check for completeness and put in one place DRAFT 11 DRAFT

61 Date: January 18, 2018 To: From: Subject: Minimum Wage & Paid Sick Leave Working Group Michael Braiman, Assistant Village Manager Resident Communications Enclosed please find communications from Village residents to the Minimum Wage & Paid Sick Leave Working Group.

62 January 10, 2018 Dear Chairman Jacoby and Members of the Working Group, Thank you for convening the Minimum Wage & Earned Paid Sick Leave Working Group. Our LWV-W Observer Report for Monday evening s meeting will be posted on our website soon. In the meantime we would like to share feedback that we hope will be helpful. We appreciate your important charge to the group to set aside bias and seek information. We also appreciate the willingness of the working group to engage with the community in attendance at the meeting. The atmosphere was thoughtful and the discourse civil. We hope this practice will continue. During the meeting, it was striking that there is not a clear commitment to seeking and considering the will of the village residents who, after all, are the people who elect the trustees. The perspective and wishes of the Wilmette voters, who the trustees represent, should be of primary importance in trustee decision making. The mandate itself, as expressed in the memo of December 27th, places inordinate emphasis on determining the impact of ordinances on businesses in Wilmette and omits the effects upon residents and workers. It states...the impact on businesses, employees, and the Village as an overall economic engine. We all know the community is much more than just an economic engine. It is also a place that expresses the values, perspectives, goals and hopes of residents. A few additional comments: 1. While this work needs to be done as expeditiously as possible, the number, timing, and frequency of meetings should be determined by the work that needs to be accomplished. Schedule should be determined by measures of output and should not already be finalized. 2. While there have been several mentions of setting aside bias, based on the information shared when committee members introduced themselves at the beginning of the meeting, it was clear that some members of the working group consider themselves as representing small business. If members are to represent constituencies, it was not clear who was representing minimum wage workers.