Appendix_6_Living_Wage_Requirements.pdf

Appendix 6. Living Wage Requirements Effective Date: July 2024

Appendix 6. Living Wage Requirements for Services & Facilities Maintenance

Contracts

The resulting Contract for this procurement has been determined to be a Living Wage

Contract.

I. The following Living Wage Requirements apply to the resulting Contract:

A. Maryland law requires that contractors meeting certain conditions pay a living wage to covered employees on State service contracts over $100,000. Maryland Code Ann., State

Finance and Procurement Article, § 18-101 et al. The Commissioner of Labor and

Industry at the Department of Labor requires that a contractor subject to the Living Wage law submit payroll records for covered employees and a signed statement indicating that it paid a living wage to covered employees; or file a request to the Commissioner of

Labor and Industry for a waiver from Living Wage reporting requirements. See COMAR

21.11.10.05.

B. If subject to the Living Wage law, Contractor agrees that it will abide by all Living Wage law requirements, including but not limited to reporting requirements in COMAR

21.11.10.05. Contractor understands that failure of Contractor to provide such documents is a material breach of the terms and conditions and may result in Contract termination, disqualification by the State from participating in State contracts, and other sanctions.

Information pertaining to reporting obligations may be found by going to the Maryland

Department of Labor website http://www.dllr.state.md.us/labor/prev/livingwage.shtml.

C. Additional information regarding the State’s living wage requirement is contained in

Attachment G. Bidders/Offerors must complete and submit the Maryland Living

Wage Requirements Affidavit of Agreement (Attachment G) with their

Bid/Proposal. If the Bidder/Offeror fails to complete and submit the required documentation, the State may determine the Bidder/Offeror to not be responsible under

State law.

D. Contractors and subcontractors subject to the Living Wage Law shall pay each covered employee at least the minimum amount set by law for the applicable Tier area or the State or County minimum wage, whichever is higher. The applicable Living Wage rate is determined by whether a majority of services take place in a Tier 1 Area or Tier 2 Area of the State.

1) The Tier 1 Area includes Montgomery, Prince George’s, Howard, Anne Arundel and Baltimore Counties, and Baltimore City.

2) The Tier 2 Area includes any county in the State not included in the Tier 1 Area.

(NOTE: State law requires that contractors and subcontractors pay at least the higher of the

State or local minimum wage or the minimum Living wage rate whichever is higher.)

3) (a) In the event that the employees who perform the services are not located in the

State, the head of the unit responsible for a State Contract pursuant to §18-102(d) http://www.dllr.state.md.us/labor/prev/livingwage.shtml

Appendix 6. Living Wage Requirements Effective Date: July 2024 of the State Finance and Procurement Article shall assign the tier based upon where the recipients of the services are located.

(b) If the Contractor provides more than 50% of the services from an out-of-State location, the head of the unit responsible for a State contract will determine the wage tier based on where the majority of the service recipients are located. See

COMAR 21.11.10.07.

E. The Contract will be determined to be a Tier 1 Contract or a Tier 2 Contract depending on the location(s) from which the Contractor provides 50% or more of the services. The Bidder/Offeror must identify in its Bid/Proposal the location(s) from which services will be provided, including the location(s) from which 50% or more of the

Contract services will be provided.

1. If the Contractor provides 50% or more of the services from a location(s) in a

Tier 1 jurisdiction(s), the Contract will be a Tier 1 Contract.

2. If the Contractor provides 50% or more of the services from a location(s) in a

Tier 2 jurisdiction(s), the Contract will be a Tier 2 Contract.

F. The Bidder/Offeror shall identify in the Bid/Proposal the location where services will be provided.

G. NOTE: The Living Wage may change annually, however, the Contract price will not change due to a change in the Living Wage rate or a change in the State minimum wage. The Contractor shall be responsible for any wage/rate increase during the term of the Contract and such increase may not be passed on to the State.

See Attachment G. Maryland Living Wage Requirements Affidavit of Agreement to complete the Affidavit and submit with the Bid or Proposal.