Agenda Item 7C
April 14, 2015
Robert H. Drummer, Senior Legislative Attorney
Action: Bill 14-14, Contracts and Procurement - Wage Requirements
Insurance - Amendments
Government Operations and Fiscal PolicylHealth and Human Services Committee
recommendation (5-0): enact Bill 14-14 with amendments.
Bill 14-14, Contracts and Procurement - Wage Requirements - Health Insurance
Amendments, sponsored by Councilmembers Navarro, Berliner, Riemer, EIrich, Floreen and
Branson, was introduced on February 4. A public hearing was held on February 25. Joint
Government Operations and Fiscal Policy CommitteelHealth and Human Services Committee
worksessions were held on November 24 and January 22.
Bill 14-14, as introduced, would:
• require certain County contractors or subcontractors to provide health insurance
or a cash equivalent for employees who perform work on a County contract;
• limit the employee's share of the health insurance premium for certain employees
working on a County contract; and
• eliminate the credit against the wage requirements for the employer's share of
health insurance for certain employees working on a County contract.
Bill 5-02, Procurement - Service Contracts - Wage Requirements, was enacted by the
Council on June 11,2002 and signed into law by the County Executive on June 20, 2002. This
law, known as the Living Wage Law or the Wage Requirements Law, is codified at §IIB-33A of
the County Code. The Living Wage Law requires certain businesses which provide services (but
not goods) to the County to pay employees working on a County contract a minimum living
wage that was originally set at $10.50 per hour, effective July 1, 2003. The law requires the
Chief Administrative Officer to adjust this rate each July 1 by the annual average increase, if
any, . in the Consumer Price Index for all urban consumers for the Washington-Baltimore
metropolitan area. The current living wage is $14.15 per hour. The Living Wage Law does not
require employers to provide health insurance, but employers are given credit toward the wage
rate for the cost of any health insurance provided.