Living Wage: What It Means and Why It Matters for Workers

Q: Who is covered by living wage ordinances?

Typically, workers employed by businesses that have contracts with local governments or receive subsidies are covered.

Q: What should I do if my employer is not paying me a living wage?

You should document the issue and consider seeking legal advice to explore your options.

Definition & Meaning

A living wage is an hourly wage that is above the federal or state minimum wage, designed to ensure that workers can meet basic subsistence needs in their local area. Living wage ordinances require employers, particularly contractors and subcontractors working with government entities, to pay their employees this higher wage. These ordinances also mandate additional provisions, such as providing health benefits, offering paid leave, maintaining adequate records, and displaying notices about living wage requirements.

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Legal Use & context

Living wage ordinances are primarily used in labor and employment law. They apply to businesses that have contracts with city or county governments or receive local economic development subsidies. Legal practitioners may encounter these ordinances when advising employers or employees about wage rights and benefits. Users can manage related forms and procedures using resources like US Legal Forms, which provide templates drafted by attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A city implements a living wage ordinance requiring all contractors to pay their workers at least $15 per hour. A landscaping company that contracts with the city must adjust its pay rates to comply with this ordinance, ensuring all employees receive the mandated wage and benefits.

State-by-state differences

State	Living Wage Rate	Notes
California	$15.50	Higher local rates may apply in certain cities.
New York	$15.00	Varies by region; New York City has a higher rate.
Illinois	$14.00	Living wage ordinances exist in specific municipalities.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Description	Difference
Minimum Wage	The lowest hourly wage that employers can legally pay.	Living wage is higher than minimum wage and aims to cover basic needs.
Prevailing Wage	The average wage paid to workers in a specific area for similar work.	Prevailing wage can vary by project type and location, while living wage is a fixed rate set by ordinances.

Common misunderstandings

What to do if this term applies to you

If you are an employee covered by a living wage ordinance, ensure that your employer is complying with the wage and benefits requirements. If you suspect non-compliance, you may want to document your findings and consult a legal professional for advice. Employers can use US Legal Forms to access templates for compliance and record-keeping.

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Quick facts

Typical living wage: varies by location, often above $15 per hour.
Jurisdiction: local governments with living wage ordinances.
Possible penalties for non-compliance: fines, contract termination.

Key takeaways

Frequently asked questions

What is the difference between a living wage and a minimum wage?

A living wage is higher than the minimum wage and is intended to cover basic living expenses.