How living wage requirements impact nonprofits

Ann Arbor's living wage ordinance comes under review in an evaluation of how living wage ordinances (ie. increases in minimum wage salaries) would impact their ability to execute their mission. NPQ weighs the pros and cons.


"Increasingly, the sentiment among political leaders is that nonprofits may not always warrant the exemption. In some living wage ordinance structures, nonprofit organizations have an opportunity to demonstrate a need to be exempted from the wage increase. For example, in Ann Arbor, the Community Action Network applied for exemption from the local living wage ordinance, which the original ordinance permitted based on need. However, in granting the exemption from the ordinance, CAN had to submit a plan to demonstrate how it would come into compliance with the living wage rate (at that time, in 2012, $12.17 an hour for employers paying for health insurance, $13.57/hour for those not providing health insurance) in three years."

Read the rest here.
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