What specifically do “Living wage” ordinances call for?
Since 1994, 130 municipalities have adopted living wage ordinances, that mandate that covered workers receive an hourly wage providing enough income to keep the individual above the poverty line. The growth of the living wage movement has been called “the most striking progressive achievement in labor and employment policy in the past 25 years”. Municipal governments depend on businesses and investors …show more content…
The federal minimum wage, which hasn’t changed since it was set on July 24, 2009, is $7.25 per hour. States can set a minimum wage higher than the federal minimum, but not lower. All employers are required to pay whichever rate is higher: their state/local minimum wage, or the federal minimum wage.
Below are differences between the living wage and the minimum wage:
• The minimum wage is not connected to any government measurement of poverty. Its rate instead depends on Congress-approved raises, which are often influenced by the economy and business interests as a whole. The living wage calculates area-specific costs of living, including food, child care, health care, housing, transportation, and other necessities.
• The minimum wage is regulated by the federal government’s U.S. Department of Labor and/or by state and local governments if they choose to set a higher wage. A business typically must only comply with a living wage if it is set by a state/local government with whom that company has a contract.
• While Congress determines the minimum wage, the living wage can be set by state and local governments or, for informational purposes, determined by …show more content…
It has been suggested that organizations concerned about low-income workers could do more to promote awareness of existing benefits such as the Earned Income Tax Credit. Local elected officials could focus more energy on improving public schools, so today's students can avoid becoming the low-skilled workers of the future. It was also suggested that advocates for the poor examine whether federal and state assistance programs should be redesigned so that eligibility is phased in and out, rather than disappearing entirely at a certain income