The “Living Wage Establishment Act” builds upon Councilmember Catania’s successful effort to increase the minimum wage in the District from $6.25 per hour to $7.00 an hour by January 2006.

Ed Lazere, Executive Director of the D.C. Fiscal Policy Institute said, “The District’s primary economic development goal should be to create more jobs that can support a family. This bill is a big step in that direction.”

A similar standard has been in place throughout the Washington region for years. Prince George’s County, Montgomery County, Arlington County, and Alexandria mandate living wages ranging from $10.50 to $11.36 per hour. The Maryland General Assembly recently attempted to institute a state-wide living wage, but the Senate’s attempt to override Governor Robert Ehrlich’s veto fell three votes short.

Catania’s bill establishes a living wage of $10.50 per hour for D.C. employees and all public service contracts agreed to after January 1, 2006. To keep up with inflationary pressures, that amount would be indexed to the region’s Consumer Price Index. Exempted from living wage requirement are contracts for less than $50,000 and contractors with fewer than 10 employees.

Councilmember Catania commented, “Nay sayers will argue that this will unduly burden businesses and increase costs. Widely accepted studies suggest that is just not the case. Absent a genuine threat to business, establishing a living wage is the right thing to do.”

For more information on this matter, please contact the Office of Councilmember David Catania by calling 202-724-7772.