NS ORD-1997-045 Living Wage Ordinance

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�s Memorandum to: BOCC John Link From: Ted Abernathy and Pam Jones Date: September 15, 1997 Subject: Living Wage Ordinance On May 12, a report examining a living wage ordinance for Orange County was presented. The report gave a background on the history to date of living wage ordinances across the country and posed a series of questions. This letter will provide an update on activities since May and cite areas in which clarification is needed before additional progress can be made. Actions Since May Salary reclassification - During the 1997-98 budget process,the BOCC provided funds to eliminate the County's lowest salary grade(56)and moved the eight positions up to grade 57. This action cost$2,500 and resulted in the lowest-paid, full-time,permanent staff at Orange County earning $8.24 per hour. Loan Pool - The BOCC approved the new Orange County Small Business Loan Pool on September 2, 1997. As part of the eligibility for borrowers, the BOCC included requirements that all employees of any business receiving a loan earn at least the Orange County living wage, if adopted, and that the employer pay at least 50%of employee health benefits. Federal Minimum Wage - On September 1,the new Federal minimum wage of$5.15 took effect. A few part-time County employees, such as library pages, were increased to the new Federal minimum wage. Le ag l Interpretation - The County Attorney has examined the question of local living wage requirements and has expressed an opinion that Orange County does have broad ability to require action. Geof believes that, in cases that are not covered by State bid requirements,the County can require private and private not-for profits to adhere to locally developed wage requirements. This broad interpretation requires that the staff get additional input from the BOCC before proceeding.