The state of California is set to have another living wage implemented on the local level there. Remember, a living wage is different than a minimum wage because generally speaking—except for the state wide Maryland living wage—a living wage in passed on the local level in the towns or counties. Also, a living wage is generally based on what an employee would need to make to earn at or more than the federal poverty line. Minimum wages, on the other hand, are generally based on what the rate of inflation is in an area, and adding that to the existing minimum wage.
But enough of the background. I must be boring you to tears, or in the very least, you want to hear which area in the Golden State has passed a new living wage. Should I make you wait any longer? No, I am not a good writer to keep you on your toes any longer! So here it is—the new living wage was passed in Orange County, California.
It will only be specifically for those workers contracting with the city of Irvine, according to the new law that the Irvine City Council passed just this Tuesday. The living wage for these workers will be at least $10 per hour, and that would be on top of benefits. The City Council picked that level for their living wage in particular because that is the minimum wage that city employees make in Orange County.
The new living wage counts immediately for any new contract being dealt in the community, with the city, starting tomorrow. For contracts with the city of Irvine already in place, the new living wage will be phased into existence over the course of the next four years. Contracts that will be affected by the new Irvine living wage law include such contracts as those for the city’s lawn services and landscaping services, as well as those for maintenance and security of city properties. The law does not cover all contracts with the city. Contracts must be worth at least $100,000 in services, and they must last for at least one year, in order for the new law to cover them.
But I get ahead of myself. The law will not actually go into full effect until the Irvine City Council votes and passed the law again. And that could happen, though it could be close again. The first vote went three to two in favor of the new living wage. If and when it is passed, this new law would make Irvine the only city in the whole Orange County with a living wage. Either way, the city has already set aside an additional $300,000 to pay the new living wage to its contractors, so you got to figure that the odds are good that it will be passed.
Some additional features of the new Irvine living wage bill include that there will an additional 4 percent raise added to the $10 come July 1 of this year. This is again because the city’s full time workers will be receiving the same wage on that date. Another feature—these particular workers affected by the new law can also expect that the contractor will have to spend at least $2.02 per hour on their benefits alone. That means that technically the new living wage in Irvine is $12.02 per hour. If a contractor fails to pay a worker this new living wage, by the way, they could be facing in the very least a mandate by the city to even up with their employees—or at worst, the city has the right under the new law to cancel the contract and prohibit the contractor from getting any contracts down the road.