Spotlight: Labor and Economic News Across the Country: Laying Down the Law on Wages

While Congress bickers about upping the federal minimum wage by a mere $1, cities and counties across the country are taking action to see that some workers actually earn enough to live on.

Called “living wage” ordinances, the laws require companies that do business with local governments to pay workers more than the $5.15 per hour minimum wage.

In Warren, Mich., for instance, companies that receive city subsidies or do more than $50,000 worth of business with the city must pay a wage equal to the poverty level for a family of four — presently $8.50 an hour. They also have to pay health benefits or increase the wages to 125 percent of the poverty level — $10.63 an hour.

“The intent is that local taxpayer dollars are not used to support substandard wages that perpetuate an impoverished standard of living,” said Ed Scribner, president of the Metro Detroit AFL-CIO.

In addition to Warren, Baltimore, Denver, Los Angeles, Detroit and 40 other communities have passed the ordinance and more campaigns are underway, according to the Association of Community Organizations for Reform Now, or ACORN.

An ordinance in Hudson County, N.J., is especially generous. Affected companies have to pay their workers 150 percent of poverty-level wages, as well as provide health insurance and a week’s vacation.