Agenda - 12-01-1997 - 9b - Laserfiche WebLink

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v w • New York's code applies to "security, temporary office service, cleaning and food services." • Portland's ordinance applies to contractors supplying"janitors, security guards, parking attendants, and temporary clerical assistance." In other cities considering a living wage ordinance, the new minimum would apply to businesses receiving local subsidies or tax abatement. For instance, in Minneapolis, where the proposal has passed the City Council but is not yet enacted, businesses receiving more than $100,000 in economic development incentives would be required to pay the locally established minimum wage to all their workers. Several cities also are considering action which would require businesses receiving tax abatement above a specified level to comply with a locally adopted living wage. Another requirement that is usually part of a local effort is to ensure that all of the local government's permanent and temporary employees earn in excess of whatever minimum living wage is established. The action is viewed as a declaration of commitment by the local jurisdictions. Some questions that should be discussed and agreed upon by Board of County Commissioners before arriving at any decision on implementation include the following: 1. What is a contract? Does a purchase of goods qualify as a contract, and if so, at what level should purchases be considered? Orange County processes 3,000 purchase orders annually, ranging from $100 to millions of dollars each. 2. To what type of contracts should the ordinance be applied? • Construction: To date, living wage efforts have focused on service contracts and have not applied to construction contracts. • Legal and Accounting: Should the ordinance apply to legal or accounting contracts, two of the largest service contracts which Orange County currently has? • Non-Profits: Should contracts with non-profit agencies be included? Many non-profit agencies traditionally pay lower wages. Others, such as the Triangle Residential Options for Substance Abusers program, use unpaid or partially paid client labor. Still other non-profits, such as The University of North Carolina, have little local control over their wage structure. Most governments, if not all, have excluded non-profits from living wage ordinances. • Employee Benefits: Should an ordinance be applied to employee benefit contracts such as health or life insurance? To date, no community has included employee benefit contracts.