WHAT IS A LIVING WAGE FOR SONOMA COUNTY?

Why We Need A Living Wage In Sonoma County
Click here to see Why we need a living wage in Sonoma County.

Calculating A Living Wage In Sonoma County
Click here to see How the Living Wage is calculated.

What Is A Living Wage Ordinance?

A living wage ordinance requires employers to pay wages that are above
federal or state minimum wage levels and is based on the cost of living for
each community. The rationale behind the ordinance is that city and county
governments should not contract with or subsidize employers who pay
poverty-level wages. Hard work should be rewarded with adequate pay and
benefits, and taxpayer dollars should not support jobs that leave workers
and families in working poverty. Over 130 communities nation-wide and more
than 25 communities in California have passed Living Wage Ordinances.

How is the minimum wage different from a living wage?

The federal minimum wage is the minimum amount that a worker can be paid an
hour (currently $5.15) and applies to almost all workers. States may also
set a minimum wage that is higher than the federal minimum (California is
$7.50 an hour). Living wages commonly refer to wages set by local
ordinances that cover a specific set of workers, usually government workers
or workers hired by businesses that have received a government contract or
subsidy.

A "living wage" is a self-sufficiency wage which enables a family to pay
for housing, medical care, transportation, childcare, and food without
relying on public or private assistance. The term "living wage" is used by
advocates to point out that the federal and state minimum wage are not
adequate to enable workers to become self-sufficient.

Why do we need living wage ordinances?

The main reason for enacting a living wage ordinance is to reverse the
downward trend in wages and incomes for low-wage earners. In California
between 1979-1999, the average incomes for the top five percent of the
state's families increased by more than fifty percent, while the incomes
for the poorest fifth of the state's families fell by one percent, and for
the second poorest fifth, incomes declined by five percent.

In California, median hourly wages increased by only 1.4% adjusted for
inflation between 1989-2001, barely faster than increases in the cost of
living. The percentage of California families who are the 'working poor'
and cannot afford to pay for basic necessities, increased from 24% in 1989
to 26% in 2000--or one in four families.

Living wage ordinances prevent city and county governments from encouraging
the creation of jobs that pay wages so low that workers live in poverty.
Without living wage laws, governments could contribute to the creation of
poverty-level jobs by hiring low-paying contractors or giving businesses
tax breaks or subsidies to create jobs without any guarantee that the new
jobs will pay a decent wage.

For infomation on why we need a living wage in Sonoma County click here.

Whom does the proposed Petaluma Living Wage Ordinance cover?

The proposed Living Wage Ordinance for Petaluma will affect about 48
workers employed by the City and firms with a city contract of more than
$10,000. The employees of large companies who receive subsidies and/or
grants from the City of more than $100,000 could also be covered. Temporary
and seasonal workers are exempted as are trainees.

Who is supporting the living wage? What cities have passed ordinances in
Sonoma County?

The Living Wage Coalition is an organization endorsed by more than 55
labor, faith, and environmental, and community-based organizations. The
coalition has implemented two municipal Living Wage Ordinances in
Sebastopol (2003) and in Sonoma (2004).

How much is a living wage in Sonoma County?

The living wage proposed by the Living Wage Coalition is $11.70 an hour
with benefits and $13.20 without. We believe this hourly wage is very
conservative. According to Wider Opportunities for Women, in 2003 a wage of
$13.25 an hour with benefits, was necessary for two parents working
full-time to support two children without relying on any form of public or
private assistance.

What are the costs of NOT paying a living wage?

The cost of working poverty includes:

Family Costs: Low-wage workers often must work multiple jobs to make ends
meet and have little time for their children, or for taking classes to
improve their skills and job opportunities. Moreover, these workers and
their families are less likely to participate in civic affairs or community
organizations.

Environmental Costs: Due to low-wages and high housing costs, an
increasing number of Sonoma County workers are forced out of the county,
increasing traffic congestion and pollution.

Taxpayer costs: Taxpayers are paying twice: once for the city contract, and
again for the services needed to sustain families at poverty wages
(welfare, food stamps, Medi-Cal, and housing subsidies), Moreover, when
workers employed by the city or city contractors do not earn a living wage,
the quality of public services tends to decline. In typical low-wage firms
employee turnover is high, and training and productivity decreases.

Costs to businesses: Responsible businesses that do pay a living wage are
locked out of the municipal contracting process because they can never
outbid a large contractor who pays poverty wages. All businesses rely on
the public sector for basic services and infrastructure development such as
water, roads, energy, and education. Increased demand from low-wage workers
for public assistance strains the public sector and negatively impacts
business.

Click for the ACORN national living wage resource center and nation-wide overview.