The proposed bill seeks to amend the Living Wage Act of 2006, establishing a new living wage rate of $17.95 per hour effective January 1, 2026, which will increase to $18.40 per hour on July 1, 2026. It clarifies the definition of "affiliated employee" to include individuals directly employed by government contractors or recipients of government assistance, while excluding those performing only incidental services. The bill also outlines specific exemptions from the Living Wage Act, such as contracts subject to higher federal wage determinations and collective bargaining agreements, ensuring that certain categories of employees, including part-time workers under 22 and employees of small nonprofits, are not subject to the living wage requirements.

Additionally, the bill emphasizes the enforcement of the Living Wage Act by the Department of Employment Services (DOES) and the D.C. Office of Contracting and Procurement, which will collaborate on monitoring compliance. It also addresses the recent Home Care Final Rule, extending overtime protections to home care workers and mandating adherence to recordkeeping provisions. The bill provides mechanisms for individuals to report non-compliance and file complaints with the DOES, ensuring accountability and fair compensation for workers engaged in services funded by the District government.