Item 12. Healthy Food Worker Rebate Recommendation - July 2026 — original pdf

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. RECOMMENDATION TO COUNCIL Austin-Travis County Food Policy Board Recommendation Number: [2026-7-13] (XXX is the agenda item number): [Healthy Food Worker Incentive and Rebate Pilot Program] WHEREAS, the Austin food and beverage industry is a cornerstone of the local economy, culture, and tourism sector and is among the largest employment sectors in the city; and WHEREAS, food and beverage workers face significant economic challenges, including low wages, limited access to healthcare benefits, and workplace instability, while many locally owned businesses operate on narrow profit margins that make investments in workforce supports difficult; and WHEREAS, independent and locally owned food and beverage businesses contribute significantly to Austin's unique culture, economic vitality, and neighborhood character, yet often face greater challenges than larger corporate operators in providing workforce benefits and absorbing increases in labor-related costs; and WHEREAS, the Austin-Travis County Food Plan, adopted by Austin City Council, includes Strategy 3.4, which calls for supporting livable wages for food workers through incentives such as rebates, tax incentives, and wage supplements for food system employers who pay a livable wage; and WHEREAS, improving job quality through higher wages, healthcare access, paid leave, and workforce stability advances the City's goals related to economic mobility, public health, workforce development, small business resiliency, and equitable economic opportunity; and WHEREAS, Chapter 380 of the Texas Local Government Code authorizes municipalities to establish economic development incentive programs that provide measurable public benefits and advance community priorities; and WHEREAS, a Healthy Food Worker Incentive and Rebate Pilot Program would provide an opportunity for the City of Austin to test and evaluate an innovative economic development tool that supports both food and beverage businesses and the workers who power Austin's local food economy; NOW, THEREFORE, BE IT RESOLVED that the Austin-Travis County Food Policy Board recommends that the Austin City Council direct the Economic Development Department, through its Business Incentives Division, to develop and implement a Chapter 380 Healthy Food Worker Incentive and Rebate Pilot Program for independent, locally owned food and beverage businesses operating within the City of Austin. . BE IT FURTHER RESOLVED that the pilot program should be designed to incentivize high-road employment practices, defined as business practices that invest in workers through quality jobs, competitive wages, benefits, opportunities for advancement, and safe, stable workplaces, in order to improve worker health, economic mobility, retention, and workplace stability, including but not limited to living wages, healthcare access, paid leave, workforce development opportunities, and predictable scheduling. BE IT FURTHER RESOLVED that the Economic Development Department should develop an application and compliance process that balances accountability with accessibility and is streamlined, user-friendly, and proportional to the value of the incentive, minimizing administrative burdens for participating businesses, particularly small and locally owned establishments, in order to maximize participation and program effectiveness. BE IT FURTHER RESOLVED that the pilot program should consider eligibility criteria that include payment of the City of Austin Living Wage, currently $22 per hour, and should also evaluate alternative compliance pathways that recognize businesses demonstrating substantial progress toward high-road employment practices, including compensation levels at or above seventy-five percent (75%) of the applicable food and beverage industry wage standard in Travis County, combined with other workforce-supportive benefits or practices. BE IT FURTHER RESOLVED that the Economic Development Department should evaluate and incorporate alternative compliance options, phased participation models, or equivalent benefit standards that allow a broader range of small businesses to participate while maintaining the program's core objective of improving job quality and workforce outcomes. BE IT FURTHER RESOLVED that the Economic Development Department should establish performance measures and evaluation criteria to assess the pilot's impact on worker retention, job quality, employee well-being, business sustainability, and implementation of Strategy 3.4 of the Austin-Travis County Food Plan. Seconded By: Date of Approval: Motioned By: Vote: For: Against: Abstain: Off the dais: Absent: Attest: _____________________________________________