Sacramento City Council Votes to Make Living Wage Permanent
The Sacramento City Council voted yesterday to make the city's trial living wage pilot program, enacted in 2003, permanent. Under this program, companies that provide certain services to or for the city must pay workers a minimum wage of $10 per hour, adjusted annually for inflation.
According to the Living Wage Ordinance ("LWO"), this minimum wage applies only to contracts for non-professional services including, but not limited to, tree trimming services, repair services for motor vehicles and office equipment, vehicle towing and security services. The LWO does not apply to incidental services (i.e., delivery, installation or maintenance provided under contracts for the purchase or lease of equipment, supplies or other personal property); contracts that are subject to city, state or federal prevailing-wage requirements; contracts for professional services (i.e., services provided by engineers, architects, auditors, banks, consultants, actuaries and attorneys); and contracts with certain non-profit corporations.
Note that the LWO is only applicable to contracts that provide compensation from the city of $100,000 or more (individually or in the aggregate) and to contractors with at least 25 employees; it is also applicable to subcontractors providing services under a covered contract if the amount of the subcontract is at least 25% of the contract amount.
Please contact us directly to discuss any questions you have regarding the effect the LWO may have on your workplace.