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Department of Finance

Pasadena Living Wage

The City of Pasadena’s Living Wage Ordinance, Pasadena Municipal Code Chapter 4.11 requires that contractors providing labor or services to the City under contracts in excess of $25,000 pay no less than the City’s Living Wage to all employees who spend any of their time providing labor or delivering services to the City. 

Contractors that fail to comply with the provisions of the Pasadena Living Wage Ordinance may have their contract terminated and be subject to  other penalties as stated in Pasadena Municipal Code Chapter 4.11.

Wage Rate

The City’s Living Wage for the current calendar year 2016 is $11.07 per hour plus medical benefits of no less than $1.96 per hour, or $13.03 per hour without medical benefits.

Additionally, in each January thereafter the Living Wage rate shall be adjusted by the change in the Consumer Price Index, for the Los Angeles-Riverside-Orange County area, for the most recently available 12 month period.  Accordingly, current City contractors will be required to adjust wage rates no later than July 1st of the current calendar year, to remain in compliance.

Additional Requirements

The Living Wage Ordinance requires employers to notify employees who spend any of their time providing labor or delivering services to the City of Pasadena who make less than twelve dollars ($12) per hour of their possible right to the federal Earned Income Tax Credit (EITC) under § 32 of the Internal Revenue Code of 1954, 26 U.S.C. § 32, and making available to such employees forms required to secure advance EITC payments.

Compliance

Contractors subject to the Living Wage Ordinance will be required to evidence compliance with the Ordinance by submitting payroll records as requested by the City.  Each record shall include the full name of each employee performing labor or providing services under the contract; job classification; rate of pay and benefit rate.

Supersession by Collective Bargaining Agreement

On August 4, 2008, the Pasadena City Council amended the Living Wage Ordinance such that the provisions of the Living Wage Ordinance may be waived in a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in clear and unambiguous terms.  If this provision applies, you must provide a copy of the collective bargaining agreement to the City.

Prevailing Wage Rate Projects

If there is a difference between the Pasadena Living Wage and Prevailing Wage rates for similar classifications of labor, the contractor and his subcontractors shall pay no less than the highest wage rate.
 

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