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Overview - Living Wage for State Service Contracts

In 1994, Baltimore was the first city to enforce the Living Wage Law. Since then, over 140 cities throughout the United States have joined forces and created a Living Wage movement in their areas, and the numbers continue to grow both in the U.S. and on international soil.

Living Wage Rate

Current Living Wage Rate
Effective 12:01 a.m. on September 28, 2017 the Living Wage rates were adjusted to $13.79 per hour in Tier 1 areas and $10.36 in Tier 2 areas, depending on the location where the services are being performed or on the location benefiting from the work. The Living Wage rates change each year and are published in July at the beginning of the State’s fiscal year and effective 90 days from the end of the State fiscal year in June. View exemptions.

Area Breakdown

  1. Tier 1: Anne Arundel County, Baltimore City, Baltimore, Howard, Montgomery, and Prince George’s Counties
  2. Tier 2: Any county in the State not included in the Tier 1 area for each hour you work on that contract.

Living Wage Law

What is the Living Wage Law?
The Living Wage Law authorizes the Commissioner of Labor and Industry to administer and enforce the law. The Commissioner of Labor and Industry is required to adjust the wage rates based on the Consumer Price Index and to allow certain reductions to the wage rates. These laws establish and enforce wage standards for workers from private businesses receiving contracts or subsidies from local governments . Living Wage ensures that the hourly rate earned by an individual working full-time on a state project valued at either $100,000 or more if the contractor has more than 10 employees or $500,000 if the contractor has 10 or few employees, is sufficient to provide the necessities and comforts essential to an acceptable standard of living.

Services Covered Under the Law
Under the Living Wage Law, services covered include maintenance services and information technology services. However, services NOT included are construction, construction-related services, architectural and engineering services, energy performance contracts, supplies (including commodities and printing), real property, or the purchase of goods.

Services Exempt from the Living Wage Law

For additional information, contact:
Division of Labor and Industry
Living Wage for State Service Contracts

1100 N. Eutaw Street - Room 606
Baltimore, MD 21201
Fax: 410-767-2986