Maryland’s Living Wage

Following the lead of several American municipalities, Maryland has become the first state to mandate a “living wage” for government contractors. Larger businesses working on larger contracts will have to pay at least $11.30/hour in urban areas and $8.50/hour in rural areas. While this bill is no substitute for an adequate minimum wage covering all workers, it is a positive step. Maryland’s “living wage” rates will be indexed to inflation, a feature that should be applied to minimum wages.