APPENDIX E

Living Wage Requirements

A solicitation for services under a state contract valued at $100,000 or more may be subject to Title 18, State Finance and Procurement Article, Annotated Code of Maryland. Additional information regarding the State’s Living Wage requirement is contained in the following section entitled Living Wage Requirements for Service Contracts. If the Offeror fails to complete and submit the required Living Wage documentation, the State may determine an Offeror to be not responsible.

As of 9/29/2026, Contractors and Subcontractors subject to the Living Wage Law shall pay each covered employee at least $17.54 per hour in Tier 1 areas except for Montgomery County. Effective July 1, 2026, large employers (those with 51 or more employees) must pay the Montgomery County minimum wage rate of $18.00 per hour. For all non-Tier 1 areas, employees must be paid at least $15.00 per hour (the current State Minimum Wage rate). The specific 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. The Tier 1 Area includes Montgomery, Prince George’s, Howard, Anne Arundel, and Baltimore Counties, and Baltimore City. The Tier 2 Area includes any county in the State not included in the Tier 1 Area. If 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) shall assign the tier based upon where the recipients of the services are located.

The contract resulting from this solicitation will be deemed 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. 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. 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. If the contractor provides more than 50% of the services from an out-of-State location, then the contract will be deemed to be a Tier 1 contract. An Offeror must identify in its Proposal the location(s) from which services will be provided.

The contract resulting from this solicitation has been determined to be a Tier 1 contract.

Affidavit of Agreement Maryland Living Wage Requirements for State Service Contracts

Request for Proposal No: 92303 – Custom AI-Enabled Content Development Name of Contractor ____________________________________________________________ Address _____________________________________________________________________ City ______________________________________ State ________ Zip Code _____________

If the Contract is Exempt from the Living Wage Law

The Undersigned, being an authorized representative of the above-named Contractor, hereby affirms that the Contract is exempt from Maryland’s Living Wage Law for the following reasons: (check all that apply)

☐ Bidder/Offeror is a nonprofit organization ☐ Bidder/Offeror is a public service company ☐ Bidder/Offeror employs 10 or fewer employees and the proposed contract value is less than $500,000 ☐ Bidder/Offeror employs more than 10 employees, and the proposed contract value is less than $100,000

If the Contract is a Living Wage Contract

A. The Undersigned, being an authorized representative of the above-named Contractor, hereby affirms our commitment to comply with Title 18, State Finance and Procurement Article, Annotated Code of Maryland and, if required, to submit all payroll reports to the Commissioner of Labor and Industry with regard to the above stated contract. The Bidder/Offeror agrees to pay covered employees who are subject to living wage at least the living wage rate in effect at the time service is provided for hours spent on State contract activities, and to ensure that its Subcontractors who are not exempt also pay the required living wage rate to their covered employees who are subject to the living wage for hours spent on a State contract for services. The Contractor agrees to comply with, and ensure its Subcontractors comply with, the rate requirements during the initial term of the contract and all subsequent renewal periods, including any increases in the wage rate established by the Commissioner of Labor and Industry, automatically upon the effective date of the revised wage rate. The living wage rate effective September 29, 2025, is $17.17 per hour in Tier 1 areas except for Montgomery County. In Montgomery County, the living wage rate is $17.65 per hour for large employers (51 or more employees). In non-Tier 1 areas, the rate is $15.00 per hour (the current State minimum wage rate). This living wage rate changes each year and is published on the Department of Labor website 90 days from the end of the University’s fiscal year at https://www.dllr.state.md.us/labor/prev/livingwage.shtml. The University’s fiscal year is July 1st through June 30th.

B. Contractor further agrees that UMGC has the right to conduct an independent audit by university internal auditors or State of Maryland auditors of the Contractor’s payroll records to confirm this affirmation at any time. Contractor also agrees to cooperate with UMGC to supply required documentation in the event that it is requested as support for this affidavit by the State of Maryland or an agency of the State of Maryland. Any information that is supplied by contractor under this Affidavit to UMGC, the State of Maryland or an agency of the State of Maryland will be subject to the terms of the Maryland Public Information Act.

C. _____________________ (initial here if applicable) The Bidder/Offeror affirms it has no covered employees for the following reasons: (check all that apply)

☐ The employee(s) proposed to work on the State contract will spend less than one-half of the employee’s time during every work week on the State contract;

☐ The employee(s) proposed to work on the State contract will be 17 years of age or younger during the duration of the State contract; or ☐ The employee(s) proposed to work on the State contract will work less than 13 consecutive weeks on the State contract.

The Commissioner of Labor and Industry reserves the right to request payroll records and other data that the Commissioner deems sufficient to confirm these affirmations at any time.

Name of Authorized Representative: ______________________________________________

Signature of Authorized Representative Date

Title

Witness Name (Typed or Printed)

Witness Signature Date

UMGC RFP #92303 – Custom AI-Enabled Content Development – Page 1 of 1