The proposed bill modifies the existing Living Wage Act of 2006 to establish new living wage rates for employees working under contracts or receiving government assistance from the District of Columbia. 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 all recipients of contracts valued at $100,000 or more, as well as subcontractors receiving $15,000 or more, and recipients of government assistance of $100,000 or more and their subcontractors receiving $50,000 or more. The bill also outlines specific exemptions from the living wage requirement, including contracts subject to higher federal wage determinations, collective bargaining agreements, and certain service contracts related to utilities or emergency responses.

Additionally, the bill includes provisions for compliance with the U.S. Department of Labor Wage Determination Services Contract Act and mandates that contractors adhere to the most current wage determination requirements throughout the option period. The Department of Employment Services (DOES) will oversee enforcement, requiring recipients to inform their employees of these wage provisions and maintain payroll records for at least three years. The modifications aim to ensure fair compensation for workers while providing clarity and consistency in pay across different job classifications, thereby supporting workforce stability and employee satisfaction.