Living Wage Standard

 

In 2005, I introduced the Philadelphia 21^st Century Minimum Wage Standard Ordinance – a living wage bill – that required City-supported employers to pay at least 150% of the minimum wage to its employees. The wage standard was already required in Philadelphia under both local and state job creation tax credit laws – requiring a minimum hourly wage of at least $7.72 per hour - rather than just $5.15. For the record, someone being paid only $5.15 an hour at that time – even if they worked 40 hours per week – and worked all 52 weeks in the year – earned only $10,712 annually.

Obviously, the purpose of the legislation was to assure that as many employees as possible within the City of Philadelphia earned a new wage that enabled them to live with more dignity and increased economic self-sufficiency.

The City contracts with businesses and organizations to provide services to the public - and provides financial assistance to developers for the purpose of promoting economic development and job growth. Such public expenditures should also be invested in a better community economic standard. It is an investment in those that are most vulnerable economically.

Philadelphia was far behind other major cities in terms of enacting that type of legislation – we had never set our own living wage standard. The original ordinance set the new standard at 150% of the federal or state minimum wage – whichever was higher. Enactment of the local legislation took covered employees up to at least $7.72 per hour, but that was only the beginning.

During my legislative tenure, the Philadelphia 21^st Century Minimum Wage Standard Ordinance raised the local living wage standard from $5.15 per hour to $7.72 to $10.88 to at least $12.00 per hour. It is currently $13.75 per hour and will rise to at least $15.00 per hour by July 1, 2022.  That is real money for people who need it the most!