By setting a livable minimum wage for service contracts, the State will help end the poverty and reduce welfare case loads. There is also a precedent in the construction industry with the Prevailing Wage Act. If anything, this bill will increase competition for State contracts, because businesses that already pay their workers a fair wage will be able to compete on a level playing field. Employers that contract with the State only have to pay the Living Wage when their employees are providing the services the State contracted for. When they are working on private sector contracts, employers can pay them whatever wage they normally pay.
Construction contractors face the same situation all the time.
They have to keep track of different wage rates when they win contracts to build government projects because of the Prevailing Wage Law. If the employer thinks this is unfair, then they can pay all of their workers a Living Wage. How does this bill effect social service agencies. It requires the State to pay all added costs for social service agencies from the Living Wage requirements. T if those wage requirements are higher.