Labor advocates turned out in force Tuesday to support a bill that would almost double what contract employees could be paid for working on a large state contract.
“We almost made history in 2004, and now we know there?s a new day and we have unfinished business,” said Del. Herman Taylor, D-Montgomery, one of the bill?s chief sponsors. Taylor said the bill was designed to make sure “state government is not subsidizing poverty.”
The living-wage proposal would require contractors to pay employeesa minimum wage of $11.95 per hour on state contracts worth at least $100,000. Employees would be required to work at least half their workweek on the state contract and spend at least 13 weeks of full-time work on the contract to be eligible. The living-wage rate would be adjusted annually to keep pace with inflation. Without a living wage bill, wages for state contract workers would be tied to the state?s $6.15 per hour minimum wage.
Employees must also be at least 17 years old to be paid the living wage, and employers could reduce the wage if they agree to pay for health insurance for their employees.
A living-wage proposal passed both the state Senate and the House of Delegates in 2004, but was vetoed by then-Gov. Robert Ehrlich. Gov. Martin O?Malley, in an unscripted section of his State of the State address, said he would support a living-wage bill.
Montgomery and Prince George?s counties and Baltimore City already have local living-wage laws for local public contracts.
“It is critically important that we pay a living wage so people don?t have to rely on food stamps and subsidized housing,” said Tom Perez, state secretary of labor, licensing and regulation. The bill is expected to affect contracts for community-based services for the developmentally disabled, and maintenance and food service contracts for state facilities.
But some members of the House Economic Matters Committee said the bill didn?t extend the living wage far enough.
“I could be an employee of Baltimore City working a state contract and still not getting a living wage,” said Del. Richard Impallaria, R-Baltimore, citing a part of the bill that exempts city and county government employees from the living- wage mandate. “So I?d be getting duped twice under this bill. If you work one hour on a state contract, you should get paid a living wage.”
Opponents said the bill would be a foolish step in light of the looming state budget shortfall because of the potential for a dramatic increase in contract costs.
The Maryland Chamber of Commerce said in written testimony that the state has “no reason ? to inflate the wage rates of its service contracts above a level that is more appropriately set in the marketplace.”
