The proposed bill seeks to amend the Living Wage Act of 2006, establishing new minimum wage rates for government contract recipients and assistance beneficiaries. 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. This requirement applies to contracts valued at $100,000 or more, as well as to subcontractors receiving $15,000 or more from the primary recipient. Additionally, it covers government assistance recipients receiving $100,000 or more, with subcontractors receiving $50,000 or more also included. The bill defines "affiliated employees" as those directly compensated through government contracts or assistance, while excluding individuals performing only incidental services.
Furthermore, the bill outlines specific exemptions from the Living Wage Act, including contracts subject to higher federal wage determinations, collective bargaining agreements that meet the living wage requirement, and contracts for essential services during emergencies. Other exemptions apply to certain student workers, 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, with mechanisms in place for reporting non-compliance. Overall, the bill aims to enhance economic viability and ensure fair compensation for workers in the District of Columbia.