CITY OF CAMBRIDGE LIVING WAGE ORDINANCE
FACT SHEET
CHAPTER 2.121 OF THE CAMBRIDGE MUNICIPAL CODE
[Note: This fact sheet is a summary of several provisions of the Cambridge Living Wage Ordinance intended to provide an introduction to the matters regulated by the ordinance. All determinations regarding the application of the ordinance to particular individuals or circumstances should be made by reference to the ordinance itself.]
Effective date: The Cambridge City Council enacted the Living Wage Ordinance effective July 2, 1999.
Purpose: The purpose of the ordinance is to assure that employees of the City and employees of contractors, subcontractors, and beneficiaries of assistance from the City earn an hourly wage needed to support a family.
Application: The ordinance applies to (a) City employees, (b) employees of contractors and subcontractors who have Service Contracts with the City in amounts over $10,000, (a Service Contract does not include contracts for the purchase of goods, products, equipment, supplies, or other property, and does not apply to services which are incidental to the delivery of such products, equipment or commodities), and (c) employees of Beneficiaries of Assistance in the form of grants, loans, tax incentives, bond financing, subsidies, or other forms of assistance over $10,000, received by or through the authority or approval of the City, including but not limited to, c. 121A tax abatements, industrial development bonds, Community Development Block Grant (CDBG) loans or grants, Enterprise Zone designations awarded after the effective date of the ordinance, and the lease of City owned land or buildings below market value.
Covered Employers: The ordinance applies to the City, any contractor or subcontractor on a Service Contract with the City over $10,000, and any Beneficiary of Assistance over $10,000.
Covered Employees: The ordinance applies to any person employed by a Covered Employer, and to any person employed by an independent contractor doing business with a Covered Employer, who would directly expend any of his or her time on the activities funded by the service contract or the activities for which the Beneficiary received Assistance.
Living Wage: Effective March 1, 2009 the Living Wage is $13.69 per hour, subject to annual CPI adjustments each March 1st.
Cuts in non-wage benefits prohibited: No Covered Employer may fund any wage increase required by the ordinance by reducing health, insurance, pension, vacation, or other non-wage benefits of any of its employees.
Waivers: The City Manager may grant waivers to the requirements of the ordinance. There are three types of waivers: (a) General Waiver: if the City Solicitor finds that application of the ordinance would violate a specific federal or state statute or regulation; (b) Hardship Waiver: a non-profit employer may apply to the City Manager for a waiver if payment of the Living Wage would cause a substantial hardship; and (c) Chapter 30B Waiver: prior to issuing an invitation to bid for a services contract a department may ask the City Manager for a Living Wage waiver if it would make the contract inordinately expensive or would result in a significant loss of services.
Exceptions: Certain positions are excepted from the ordinance upon certification in an affidavit signed by the principal officer of a Covered Employer that the positions are as follows: (1) youth hired pursuant to a City, state, or federally funded program during the summer or as part of a school to work program or other related seasonal or part-time work; (2) work-study or cooperative educational programs; (3) trainees who are given a stipend or wage as part of a job training program; (4) persons working in recognized supported employment programs that provide workers with additional services such as room and board, case management, counseling, or job coaching; (5) positions where housing is provided by the employer; (6) employees who are exempt from federal or state minimum wage requirements; and (7) individuals employed by the City where such employment is intended primarily to provide a benefit or subsidy to such individuals, although they are paid for work performed.
Notification Requirements: All persons who have signed a service contract with the City or a contract for Assistance are required to forward this Fact Sheet to any person submitting a bid for a subcontract on the contract. All Covered Employers must provide this Fact Sheet to each Covered Employee and must post this Fact Sheet in a conspicuous location visible to all employees.
Complaint Procedures: Any employee who believes that he or she is a Covered Employee or an applicant for a position to be filled by a Covered Employee who believes that the employer is not complying with the requirements of the Living Wage Ordinance may file a complaint with:
For City Employees: Personnel Director
Cambridge City Hall
795 Massachusetts Avenue
Cambridge, MA 02139
(617) 349-4332
For Non-City Employees: Purchasing Agent
Cambridge City Hall
795 Massachusetts Avenue
Cambridge, MA 02139
(617) 349-4310
