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R 'John Jerrnanis <br />January 8, 2004 <br />In addition to prevailing wage laws in California, the Davis-Bacon Act requires payment of the <br />prevailing wage rate to all laborers and mechanics on federally funded construction projects in <br />excess of $2,000. Compliance (including administration and enforcement) with the Davis-Bacon <br />Act is the responsibility of the local jurisdiction in cooperation with the principal contractor for <br />the contract. The prevailing wage rate for contracts covered under this Act is set by the U.S. <br />Department of Labor and is updated on a regular basis. <br />The third type of wage legislation that has emerged in recent years is a living wage law. A living <br />wage law will typically require employers who are receiving government contracts and/or <br />business subsidies to pay full-time workers a wage sufficient to support themselves and their <br />families at a subsistence level. The subsistence level is generally regarded as the U.S. <br />Department of Health and Human Services poverty level for a family of four. (In 2002 the <br />poverty level was $18,244.) However, in many cases the poverty level rate will be adjusted to <br />account for the cast of living for major metropolitan areas. <br />A jurisdiction that adopts a living wage law will specify in the legislation the scope of coverage <br />(which companies are included and which employees are included) as well as the hourly rate to <br />be paid. In addition, the legislation often includes two separate hourly pay rates: one that <br />includes benefits and a higher rate to be paid when benefits are not included. <br />Below is a chart that summarizes the types of legislation used to set wage floors: <br />Legislation Legislative Covered- Workers Ray Rate <br />Tv e Bodv <br />Minimum FederaUState Nearly all employees $6.25 (Maybe increased by <br />Wa e Government local law to a hi her level.) <br />Prevailing San Leandro All contracts in Median wage for trade group as <br />Wage City Ordinance excess of $5,000 set by State Board of Industrial <br /> Relations (San Leandro <br /> ordinance applies due to charter <br /> Ci status. <br />Prevailing Federal All contracts in Median wage for trade group as <br />Wage - Government excess of $2,000 set by U.S. Department of Labor <br />Davis-Bacon <br />Act <br />Living Wage Local In general, applies to Set and monitored by the local <br /> Jurisdiction companies that jurisdiction. -Typically will <br /> receive a government include two pay levels: one that <br /> contract and/or includes health benefits and one <br /> economic assistance without health benefits. <br />History of the Living Wage <br />Baltimore, in 1994, became the first City to pass living wage legislation. Since 1994, over <br />100 local jurisdictions have enacted living wage laws. Although living wage laws have become <br />popular nationally, California has been at the forefront of the living wage movement. Five major <br />