New proposal would limit applicability and duration of living wage mandate associated with development projects receiving City economic incentives. On November 22, 2011, the City Council’s Contracts Committee held a hearing on Intro 251- A, an amended version of the Fair Wages for New Yorkers Act. The legislation would require certain employers connected to development projects receiving City financial assistance to pay employees a “living wage” linked to the consumer price index. The living wage would start at $10.00 an hour with supplemental health benefits and $11.50 an hour without benefits. The legislation would apply to developers of subsidized development projects and tenants, subtenants, and certain contractors. Council Members G. Oliver Koppel and Annabel Palma introduced the legislation, which is currently co-sponsored by 27 other council members.

The Council in May 2011 considered an earlier version of the legislation. The proposal would have required employers connected to development projects receiving at least $100,000 in incentives to pay a living wage for the longer of 30 years or the duration of the incentives. The proposal exempted from the wage mandate businesses with revenues less than one million dollars, not-for-profit organizations, and non-retail businesses operating in affordable housing developments. 8 CityLand 69 (June 15, 2011).  (read more…)