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Equitable Development Toolkit
Equitable Development Toolkit
Living Wage Provisions
What Is It?
Why Use It
How To Use It
Financing
Keys To Success
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Policy
Tool In Action
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While living wage provisions generally cover only a small number of employees, successful campaigns can be used as a springboard for broader campaigns that apply to more agencies and cover more workers. Local living wage campaigns also build momentum for an increase in the minimum wage at the state and federal level.

State : The Illinois Legislature, for example, introduced a statewide living wage initiative in 2001. The measure would require employers who receive government contracts to provide a living wage in Illinois. The Director of Labor will index the wage annually, according to 100% poverty guidelines set by director. The bill passed in Assembly, and is currently being heard in the Senate.

Federal : In April 2001, Rep. Gutierrez (D-IL) introduced the Federal Living Wage Responsibility Act. H. R. 1457 would require that the Federal Government and any employer under a Federal contract for an amount exceeding $10,000, must provide an hourly wage at or above Federal poverty level plus fringe benefits.

Federal Employees
In fiscal year 1999, approximately 162,000 Federal contract workers did not earn a wage necessary to lift a family of four out of poverty, representing 11 percent of the total 1.4 million Federal contract workers in the United States.  The Federal Government provides billions of dollars to businesses each year ($208 billion in 1999 alone), through spending programs, grants and Government-favored financing.
Source: EPI


Linking living wages with equity in California : An alliance of five organizations: Center on Policy Initiatives in San Diego; East Bay Alliance for Sustainable Economy in Oakland; L.A. Alliance for a New Economy in Los Angeles; PolicyLink in Oakland; and Working Partnerships USA in San Jose, are pushing for policies that will link public subsidies with accountability in low-income neighborhoods. The project, California Public Subsidies (CAPS), brings together regional alliances of community, labor, and advocacy partners to advance equity policies at a local and statewide level. They are working to translate their local processes into universal tools that can be applied by either local organizations or by government authority.

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