What Is It?

Living wage strategies promote wages and benefits sufficient to lift workers out of poverty.  The implementation of living wages is advanced through ordinances that require public investment to adhere to living wage guidelines.  Living wage provisions require that local governments should not award contracts to, or subsidize only those employers that pay livable wages.  As such, living wage provisions generally apply to companies that have service contracts with city or county government or those that receive certain forms of financial assistance from the government.  Some communities have successfully combined living wage and local hiring agreements in large economic development projects in their neighborhoods.

Living wage provisions require hourly wages that are at least equal to federal poverty thresholds.  Many ordinances also require employers to provide access to health care as part of the living wage regulation, either by directly supplying health care coverage or through increased wages.

There are more than 60 living wage ordinances in place nationwide and over 75 campaigns underway in cities, counties, states, and on college campuses.  Living wage requirements can be won through legislation (city councils, county boards, or state legislatures), or by ballot initiative.  Both avenues require a coordinated campaign with broad based support.

Last Updated: December 2001