Beyond Minimum Wage: Maryland Passes First State Living Wage Law
This week, Maryland became the first state to enact a "living wage" law, HB 430, requiring government contractors to pay their employees a decent wage, in the bill ranging from $8.50 an hour in rural areas to $11.30 an hour in areas of the state with higher costs of living. Maryland follows the 120 local governments around the country that have required that public money go to companies that pay their workers above the poverty line.
"It doesn't make them rich," said Sen. Thomas M. Middleton, chairman of the Maryland Senate Finance Committee. "We're just lifting them a little bit more out ... of poverty."
The bill exempts small businesses with fewer than 10 employees working on smaller government contracts and non-profits from the laws rules, but makes sure than larger private companies use public money to raise living standards for their employees, not just pad their profit margins.
Some opponents of the bill complained that the living wage law will add to the state's deficit, but recent studies on jurisdictions that have enacted living wage laws (see here and here), show little if any increased costs from requiring increased wages by contractors, and such laws have often saved money given that the employees of contractors are less likely to end up using government welfare and health care services if paid above a poverty wage.
Maryland and California legislatures approved state living wage bills in past years, only to see them vetoed by their governors then, so this revival of the Maryland living wage law under a new, more progressive Governor who will sign the law is a welcome development.
The debate on the minimum wage should just be the beginning of the discussion on how government can use a variety of tools to raise wages across the economy-- and the Maryland bill is a good example for other states.












Comments (15)
I see that no one has commented, so I just say Bravo! to Maryland (regardless of how small a step) and also to Mr. Newman for pursuing the goals of working people in America. I do not think this will have any great affect outside of those small numbers in Md. but change is always incremental, isn't it?
With a Democratic Congress it is, perhaps, time for the Federal government to lead the way in addressing the plight of the working poor. I live in Texas and work in public education. I may lose my job this year to NCLB but that is only a skirmish in the war on the poor that has continued for many decades now.
Wages, in general, and a living wage, in particular, is an amorphous term that is easily whitewashed to mean voluntary labor demands or striking unions wanting more than they are entitled to, but in many cases, it actually refers to someone's living wage. In other words, there are some working people who are really dying form poverty.The number of working poor in mortal jeopardy may be few as a percentage, but how many more are struggling and a paycheck or two away from catastrophe?
April 13, 2007 8:31 PM | Reply | Permalink
"I just say Bravo!"
Yep.
They always say that, or that it will destroy small business. Never happens. The money goes right back into the local economy anyways, and tends to go for things like child care and services which creates other jobs and helps the local economy prosper in the short and long term. It tends to come out of the pockets of people in the top income brackets who tend to spend much more out of community anyways.
If anything reducing the ranks of the working poor is usually a boon to the local economy as it reduces a lot of society issues like homelessness, drug addiction, crime, etc. while promoting continued education, families, community, etc.
Living wages is such a no-brainer, it's really amazing conservatives managed to spin it for so long. Blame Reagonomics. I guess people finally looked around and said "hey, where is the shining city on the hill, and why is my boat beached at low tidde?"
April 13, 2007 9:38 PM | Reply | Permalink
And bravo to you too, Don.
Bloggers as a whole seem more taken with the "suffering middle class"(tm) than the working people that make up the majority of the population and have been abandoned by many Democrats.
Best, Terry
April 14, 2007 12:25 AM | Reply | Permalink
They haven't been abandoned, except maybe by some of the worst in the DLC. But the middle class is hurting too, worried about foreclosures and outsourcing and all kinds a woe.
The middle class sustains the economy and is the bulk of the economy. Most of the working poor do a service or make a product purchased by the middle class. If the MC goes down, the poor are going to starve.
Helping the working poor get back on their feet and into the middle class is good for the middle class too, a very good investment, because it brings economic growth and reduces social problems.
The problem is too many Republicans try to pit the middle class against the poor, try to make it a zero sum game. But that's BS, and they're really talking to the upper-middle class, people making +200K/yr, and tend to be Republicans against taxes and against labor/wages.
April 14, 2007 1:24 AM | Reply | Permalink
Don't underestimate how far government purchasing effects the broader economy. As government outsources more services to the private sector, such living wage laws have greater effect. State and local governments outsource $400 billion in goods and services, hardly chump change. Add in economic development money and you end up with some serious effects on the economy if you hold public money accountable for creating decent wages.
April 14, 2007 4:05 AM | Reply | Permalink
Is this the new version of the bill that was supposed to get Walmart to pay a decent wage? If it is then it is a clever way to reintroduce the issue. Let's see if Walmart is one of the firms that comes out against it.
--- Policies not Politics
Daily Landscape
April 14, 2007 6:13 AM | Reply | Permalink
No doubt it would be tough on all the plumbers and carpenters and mechanics and and teachers and clerks and salespeople and gas station attendants and nurses and waiters and waitresses and all those people that do the work if management went bust.
The fantasy that everybody from CEO's to gas station attendants are middle class is the sort of trash talk that is beloved by conservatives and turned much of the Democratic Party into little more than an auxiliary of the Republicans.
Best, Terry
April 14, 2007 6:54 AM | Reply | Permalink
Living wage laws preceded much of the recent mobilization against Wal-Mart. In fact, the first modern living wage law was passed in Baltimore in 1994 and cities have been passing them since then.
This is about making sure those working on government contracts get paid decently. That mostly doesn't include Wal-Mart in this law, but it is part of the same political movement of working to raise wage standards for working people.
April 14, 2007 7:06 AM | Reply | Permalink
I grew up in the -- supposedly classless -- socialist Poland, so Terry's:
"The fantasy that everybody from CEO's to gas station attendants are middle class [...]"
is of great interest to me as are kozmik's mentions of the "working poor".
We did, in fact, have "dividing lines", but they mostly (though not exclusively) followed the level of education; they were, more-or-less, comparable to what, in US, is "white collar" and "blue collar" division. But, in a country where everyone (excepting the party leaders) was relatively poor and where everyone worked (or, at least, was employed), we didn't have "the working poor". And, obviously, we didn't have "middle class" (or lower class or upper class, for that matter), either.
So, could someone explain to me -- pretty please -- what y'all mean by those terms? They're not even the same as in Lenin, never mind Marx...
April 14, 2007 11:18 PM | Reply | Permalink
"It doesn't make them rich."
Good thing.
Heavens ... that would be horrible. Being rich is devastating to one's self-esteem and their children's future ...
I like the pronoun "them."
It's very much like Ross Perot at the NAACP: "You people ..."
April 15, 2007 12:49 AM | Reply | Permalink
Well, actually, if you really wanted to lump people into the minimum number of classes, larger than one, it would have to be the hyper rich investor class and the everybody else class.
The top 2% controls over 50% of the wealth. So if you look at it that way it's the bottom 98% and the top 2% each having a 50% share in things.
You can guess which group is more concerned about egalitarianism and the health of the community, and which group lives in gated communities and could relocate globally in any event, even if the country was nuked.
I, and every working person I know, like an elementary school teacher, a starving artist, a bus driver, a software engineer, a physiscist, a baker, and a socially conscious stock broker, are pretty concerned about the general quality of life and prosperity of all working people, the non-working poor who need transitional help, and the infirmed, which we may all be someday.
For moral/spiritual/altruistic reasons, reciprocal altruism, and just common frickin sense.
April 15, 2007 3:38 AM | Reply | Permalink
There are various definitons. I find they tend to boil down to this:
The rich are well, rich. People who could buy a mansion or even a desert island tomorrow and never have to work again, and maybe not their children either. They pretty much only know the other rich. And the hyper rich only know the hyper rich.
The middle class are people who work, be they professionals or blue collar, and their prosperity changes rapidly with the health of the economy. So they may own a house or rent, but they still worry about payments. They may attend private schools or public, but not elite schools, and they still worry about the safety of the neighborhood, the quality of teachers, etc. They're concerned about the economy and society, about infrastructure and the common good. They're all hoping to get ahead, get a piece of the pie, to upgrade slightly if they work hard and are lucky, and retire some day. These are people who know each other socially and in business.
The working poor are people who tend to be trapped in poverty no matter how hard they work. they may have started out poor or fallen through the cracks. Barely getting by. Could be devastated by medical costs or unforeseen events. Paying off credit cards and forced into predatory lending arrangements. Children suffering without daycare and probably in under funded schools. Neighborhoods wracked with crime. These are people are living in situations much like indentured servitude. Nihilism and frustration is common. They tend to only know the working poor, and destitute. Given the right economic policies and growth, opportunities, help, and investment, could be more prosperous and related societal problems improved.
You can separate people infinitely, but those are the major groups. Those who're set for life, those trying to get ahead with varrying degrees of success, and those often stuck in vicious cycles.
April 15, 2007 4:04 AM | Reply | Permalink
Jesse Jackson dubbed the DLC the "Democratic Leisure Class."
A bit lengthier but clearer would be Thorstein Veblen. I am too lazy to look up the quote but this perhaps will do as a reasonable facsimile:
The middle class has generally been management as opposed to nobility or super rich.
Doctors have not always been among the the very wealthy in income but obviously most people would not easily place them alongside fruit pickers in the working class.
If we use income as the new dividing line then all classic analysis begins to break down.
What Clinton's "suffering middle class"(tm) did was separate out lower paid workers and bunch them with the unemployed and homeless as unworthy of consideration. "Ending welfare as we know it" accomplished a decades-long wet dream of Republicans of shredding any semblance of a concern for those below the upper income levels while the "giant sucking sound" was inveighed against by a supposed moderate independent. The wealthy were taken care of and the poor were empowered to care for themselves. Any objection is class warfare.
History of the term "middle class" from Wikipedia:
Best, Terry
April 15, 2007 4:33 AM | Reply | Permalink
"Middle Class--the working-class of persons who have no direct hand in the writing of their government's laws and who are not in poverty."
April 15, 2007 9:05 PM | Reply | Permalink
Bill Clinton, I presume. Or are you Harold Ford? :-)
The middle class has never been working class by any definition.
Karl Marx thought the middle class, deprived of power by nobility, would rise up to take power followed by the working class overthrowing the bourgeoisie to form a working class paradise.
Whatever fancy grabs you, the "suffering middle class"(tm) is not by any definition working class - except that of Bill Clinton and the DLC. Work is left to the lower classes that make up the bulk of the population. The lower classes also do war as cannon fodder.
Best, Terry
April 15, 2007 10:37 PM | Reply | Permalink