What is the phase-in for nonprofits?
The living wage ordinance (LWO) says that not-for-profit covered employers are not obligated to pay the full amount of the living wage in the first two years they receive assistance from the City. During those first two years, which don’t have to be consecutive, they are required to reduce the gap between their wages and the living wage by fifteen percent at the beginning of the first year and by thirty-five percent at the beginning of the second year. (BMC 2.28.030 (d).) They will have to reduce the gap each year at the same time that the wage is likely to be increasing, which may be a bit complicated. Example: the 2010 living wage is $11.25 an hour. Good Works Agency gets a grant that is large enough to trigger the LWO and currently pays their covered employees $10.00 an hour. During the first year, they have to reduce that gap by fifteen percent. The gap between $10.00 (Good Works Agency’s current pay) and the 2010 living wage ($11.25) is $1.25. Fifteen percent of $1.25 is 19 cents,
