U.S. Supreme Court Rejects Living Wage Law Challenges

by MATTHEW ARTZ

The U.S. Supreme Court refused Monday to consider a challenge to Berkeley’s Living Wage Ordinance, handing a victory to the city and the employees of Skates On The Bay Restaurant.

“We’re hoping that other cities will follow Berkeley’s lead,” said Andy Kahn who represented the Hotel Workers Employees Union, Local 2850.

Although many cities have living wage laws, Kahn said Berkeley’s was unusually broad because it regulates companies not receiving direct city subsidies.

The restaurant’s parent company, RUI One Corporation, filed suit against the city in 2000 when the City Council amended the law to apply to large businesses in the Berkeley Marina where Skates is located.

The living wage law requires that city vendors, contractors, lessees and Marina businesses that employ more than six people or generate more than $350,000 in gross revenues pay workers a minimum of $10.75 an hour and $12.55 an hour when health benefits aren’t included. No other Marina business contested the law, said City Attorney Manuela Albuquerque.

RUI, which previously lost in trial court and the Ninth Circuit Court of Appeals, had argued that the law unconstitutionally modified its 50-year lease with the city. The Marina is state public trust land managed by the city, which has invested millions of dollars in the site.

RUI Senior Director of Marketing Will Powers said he believed RUI planned to remain in Berkeley despite the ruling. A prepared statement from company General Manager Mark Chernis read, “While we are disappointed in the Supreme Court decision... we are grateful for the continued support of the Berkeley community.”

Skates had refused to pay the living wage while the case was litigated, and instead chose to place the unpaid wages in an escrow account that must now be paid to the employees. Company and union officials contacted did not know how many employees were affected or the value of the account.