Chicago City Council Approves Living Wage Ordinance for Large Retailers

The Chicago city council recently approved an ordinance that requires large retailers in the city to pay their employees a living wage. The law, which is set to become the first of its type in the nation, would raise pay for tens of thousands of workers at retailers such as Wal-Mart, Target, and Home Depot. The Brennan Center for Justice at NYU School of Law advised the city council in designing the law and served as the lead counsel to the grassroots campaign in support of the legislation.

Key Takeaways:

• The ordinance requires large retailers with sales of $1 billion or more operating stores larger than 90,000 square feet in Chicago to pay a living wage and contribute an additional amount for benefits or supplemental wages.
• The living wage would start at $9.25 in 2007 and phase up to $10.00 by 2010, while the supplement would start at $1.50 in 2007 and phase up to $3.00 by 2010.
• The law was designed with input from the Brennan Center for Justice at NYU School of Law, which advised the city council on the proposal.
• A broad coalition of labor, anti-poverty, and faith community groups supported the grassroots campaign for the law, including Chicago's Grassroots Collaborative and ACORN.
• The law is expected to be challenged by large retailers such as Wal-Mart and Target, but experts believe it to be legal and likely to be upheld.

Statistics:

• 35-14 vote by the Chicago city council in favor of the living wage ordinance.
• Tens of thousands of workers at large retailers would be affected by the law.
• $9.25: the starting living wage in 2007.
• $10.00: the phased-in living wage by 2010.
• $1.50: the starting supplement in 2007.
• $3.00: the phased-in supplement by 2010.

Sources:

• U.S. Newswire, "Chicago City Council Approves Living Wage Ordinance for Large Retailers" (July 27, 2006).
• The Brennan Center for Justice at NYU School of Law, "Living Wage Law" (no date).
• Professor Laurie Reynolds, University of Illinois College of Law, "Legal Analysis of the Living Wage Ordinance" (no date).
• Costco, "Employee Benefits" (no date).