The proposed bill amends the Living Wage Act of 2006 to establish new living wage rates for recipients of government contracts and assistance. Starting January 1, 2026, the living wage will be set at $17.95 per hour, increasing to $18.40 per hour on July 1, 2026. The bill mandates that all recipients of contracts valued at $100,000 or more, as well as subcontractors receiving $15,000 or more, must pay their affiliated employees at least the current living wage. Additionally, recipients of government assistance of $100,000 or more and their subcontractors receiving $50,000 or more are also required to comply with this wage standard.

The bill outlines specific exemptions from the living wage requirement, including contracts subject to higher federal wage determinations, collective bargaining agreements that meet the living wage criteria, and certain service contracts related to utilities or emergency responses. It clarifies the definition of "affiliated employee" and mandates that recipients and subcontractors provide notice of the living wage requirements to their employees while maintaining payroll records for at least three years. The bill emphasizes the importance of reporting non-compliance to the appropriate authorities, including the Department of Employment Services and the Office of Contracting and Procurement.