274 Human Resources Management for Public and Nonprofi t Organizations
in the same establishment under similar working conditions. Pay differences
between equal jobs can, however, be justifi ed when that differential is based
on a seniority system, a merit system, a piece - rate payment system that
measures earnings by quality or quantity of production, or any factor other
than gender (for example, different experience or different work shifts).State and Local Government Minimum Wages
State and local governments are not bound by the federal minimum wage.
They cannot permit wages lower than the federal minimum wage, but they
can require higher wages. Currently, thirty - three states have passed mini-
mum wage laws establishing higher wages than the federal level. Some of
the minimum wage increases were passed by state legislatures and local
city or county commissions, while other minimum wage increases were
approved by voters. (For state minimum wages, go to the U.S. Department
of Labor Web site, http://www.dol.gov ).Living Wages
Living wage is a term often used by advocates to point out that the federal
minimum wage is not high enough to support a family. Advocates have
attempted to calculate a living wage based on income that would provide
for a family ’ s basic needs in a particular community. Living wages are also
commonly referred to as wages set by local ordinances that cover a specifi c
set of workers — usually government workers or workers hired by businesses
that have received a government contract, subsidy, or grant. The justifi ca-
tion behind living wage ordinances is that tax dollars should not be used to
support poverty - level jobs.
Without living wage laws, governments can inadvertently contribute to
the creation of poverty - level jobs by hiring low - paying subcontractors or
giving businesses tax breaks or subsidies to create jobs without any guaran-
tee that the new jobs will pay a fair wage. This creates additional demands
on public services and benefi ts. And because the responsibility of provid-
ing income supports and services to low - wage workers is passed on to the
government, citizens pay for the services through increased taxes.
Living wage campaigns may differ. Some local laws have been designed to
address specifi c city or county contracts, while others have been planned
to cover a variety of public expenditures that include increasing the hourly