Living Wage Ordinances

Increasingly, cities across the nation are turning to living wage policies as a means to uplift job quality. To date, more than 120 public entities around the country (including cities and counties, as well as school boards and universities) have passed living wage ordinances. Living wage laws set wage standards for workers employed by government entities, contractors or lessees of the government entity, and other firms that have a financial relationship with the government. These laws have, in part, been a response to the stagnation of state and federal minimum wages, which have failed to keep pace with inflation. In addition, these laws represent a reaction to the increasing privatization of city services as a means to cut costs, resulting in lower wages, a strategy that penalizes the low wage workers who perform city services.

Considering the erosion and elimination of medical benefits in most low-income jobs, Living Wage legislation takes into account medical benefits costs, usually providing for a two-tiered system—in which a higher Living Wage is set for employers who do not offer health benefits, and a lower Living Wage rate for those who do—in order to offer an incentive for employers to provide healthcare benefits to employees.

The living wage movement began with the passage of a Living Wage ordinance in Baltimore , MD in 1994. In the next four years, the movement’s success could be seen across the country as laws were enacted in more than twenty communities, including the first countywide ordinance in Santa Clara County in California , followed soon after by Milwaukee County in Wisconsin and Multnomah County in Oregon . By 2002, an additional 80 cities, counties and other jurisdictions (including school boards, universities, Library Systems, Govt. commissions, etc.) had passed similar laws, bringing the current total to over 120, with 75 campaigns currently underway across the country. Recently passed Living Wage Ordinances have been adopted by San Diego, CA; Sonoma County , CA; Durham County , NC; Madison , WI; Lincoln , NE; and San Francisco , CA .

The majority of living wage ordinances enacted in cities, counties and other jurisdictions affect businesses that contract with the public entity, receive governmental loans or subsidies, as well as lessees and concessionaires of the jurisdiction. In some cases specific zones within cities are subject to a living wage ordinance, including tourist zones, airports, marinas and ports.

The concept behind any living wage campaign is simple: Public dollars should not subsidize poverty-wage work, and those companies benefitting from public funds should provide benefit to the public in return.

Los Angeles City Living Wage Ordinance (LWO)
LWO Rules and Regulations
History of Los Angeles Living Wage Ordinance

Santa Monica Living Wage Ordinance
West Hollywood Living wage Ordinance
San Fernando Living Wage Ordinance (Search site for Living Wage)

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This Los Angeles Community Redevelopment Agency document also provides more information about living wage policy.

Hotel Workers Living Wage, Worker Retention, and Tip Protection Policy

The new policy, adopted in February 2007, applies the wage requirements of the Los Angeles Living Wage policy to hotel workers in the 13 major hotels near LAX airport. The City maintained that this proximity to a City facility which generates most of the business for the hotels justifies its intervention in the hotels’ employment practices. The Worker Retention component of the policy requires that, when a hotel changes ownership, the existing work force may not be fired without good cause for at least 60 days. This protects workers from arbitrary firings due to union activity or other advocacy that might be opposed by hotel owners. Finally, the tip protection policy guarantees that any payments made to hotels as “service charges” are given to the employees. The living wage policy is being litigated by business owners represented by the Chamber of Commerce and enforcement of the tip protection policy is being monitored by LAANE.