The proposed bill seeks to amend the Living Wage Act of 2006, establishing a new living wage rate for District of Columbia government contractors and recipients of government assistance. Effective January 1, 2025, the living wage will be set at $17.50 per hour, increasing to $17.95 per hour on July 1, 2025. The bill clarifies the definition of "affiliated employee" to include those directly compensated through government contracts or assistance, while excluding individuals performing only incidental services. It also mandates that subcontractors receiving $15,000 or more from a government contract or $50,000 or more from government assistance must comply with the living wage requirements.

Additionally, the bill outlines specific exemptions from the Living Wage Act, including contracts subject to higher federal wage determinations, existing collective bargaining agreements, and certain service contracts with regulated utilities. It also exempts employees under 22 years of age working during school vacations, nonprofit organizations with fewer than 50 employees, and specific Medicaid provider agreements. The enforcement of the Living Wage Act will be overseen by the Department of Employment Services and the D.C. Office of Contracting and Procurement, which will monitor compliance and address any violations.