LIVING WAGE ORDINANCE

New Orleans City Code ch. 70, art. VIII

in effect

New Orleans City Code § 70-801 Purpose.

Sec. 70-801. - Purpose. The purpose of this article is to ensure that when taxpayer-funded benefits are extended by the city to private business, they are used in a way that benefits the city as a whole, by creating jobs that keep workers and their families out of poverty as one of the core purposes of the extension of the city funding, and that the city's minimum classified pay rate is not circumvented through privatization of functions that could be feasibly be performed by city employees. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-802 Definitions.

Sec. 70-802. - Definitions. For purposes of this article, the following definitions shall apply: (1) "City" means the City of New Orleans, its departments, offices, agencies, subdivisions, boards, commissions, enterprise funds, or officials thereof. (2) "City contract" means any agreement between the city and any other person to provide services to the city or its residents. City contract includes any grant, including but not limited to Community Development Block Grant (CDBG) funds, awarded to a person in order for it to provide specific services to the city or its residents. City contract does not include (i) a contract between the city and another governmental entity or public utility, (ii) a contract subject to federal or state laws or regulations that would preclude the application of the living wage otherwise applicable pursuant to this article, or (iii) a contract principally involving the procurement of products, equipment, or goods. (3) "Contractor" means any a person that has entered into a city contract. (4) "Subcontract" means any contractual relationship under which a person undertakes to perform any portion of the services required by a city contract or city financial assistance agreement. "Subcontract" does not include (i) a contract of insurance required by a city contract, (ii) a guaranty required by a city contract, (iii) a contract subject to federal or state laws or regulations that would preclude the application of the living wage otherwise applicable pursuant to this article, or (iv) contracts principally involving the procurement of products, equipment, or goods in connection with the used to perform the city contract. (5) "Subcontractor" means any person that has entered into a subcontract. (6) "Covered employer" means any entity fitting the definitions set forth in section 70-804. (7) "Employee" means any person who performs at least 40 hours of work within a calendar year while physically present within the geographic boundaries of the City of New Orleans for an employer, pursuant to the fulfillment of an applicable city contract or city financial assistance agreement. (8) "Covered employee" means any individual fitting the definitions set forth in section 70-805. (9) "Designated department" means the chief administrative office, which is responsible for the overall implementation and enforcement of this article. (10) "City financial assistance" means direct financial assistance provided by the city to any person for the purpose of promoting economic development, job retention, or job growth. Direct financial assistance includes, but is not limited to, grants (excluding those grants that qualify as city contracts), bond financing, debt forgiveness, waivers of city-imposed fees, abatements or refunds of any taxes due to the city, payment in lieu of taxes (PILOT, and tax-increment financing provided exclusively by the city. A loan shall be regarded as direct financial assistance to the extent of any differential between the amount of the loan and the present value of the payments thereunder, discounted over the life of the loan by the applicable federal rate as used in 26 U.S.C. § 1274(d), 7872(f). A lease, sale or other below-market transfer of city property shall be regarded as direct financial assistance to the extent of the differential between the value of the transaction and the fair market value. Direct financial assistance includes payment in lieu of taxes (PILOT) and other financial assistance provided by the city to any person through the Industrial Development Board of the City of New Orleans, Inc., or any similar entity created by a public body, for the purpose of promoting economic development, job retention, or job growth within the City of New Orleans. Broadly applicable tax reductions and other benefits shall not qualify as city financial assistance. City staff assistance shall not by itself be considered city financial assistance. The opportunity to enter into a contract with the city shall not by itself be considered city financial assistance. (11) "City financial assistance agreement" means any contract or agreement to provide or extend city financial assistance, or otherwise involving the award of city financial assistance. (12) "Beneficiary" means any person that is a recipient of city financial assistance, as defined above. (13) "Living wage" means a wage equal to the levels established in section 70-806. (14) "Person" means any individual, partnership, corporation, limited liability company, sole proprietorship, association, joint adventure, estate, trust, and any other entity, group or combination acting as a unit, and the individuals constituting such group or unit. (15) "Health benefits" means an employer's monetary contribution toward the cost of health and medical care insurance for covered employees and their dependents. Health benefits may include the following types of insurance: medical health including mental health, dental, and vision care. (M.C.S., Ord. No. 26521, § 1, 8-6-15; M.C.S., Ord. No. 26905, § 1, 5-5-16; M.C.S., Ord. No. 27881, § 1, 10-4-18)

New Orleans City Code § 70-803 Applicability.

Sec. 70-803. - Applicability. This article shall apply to any covered employer relative to any city contracts or city financial assistance agreements awarded, entered into, extended or renewed after the effective date of this article. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-804 Covered employer.

Sec. 70-804. - Covered employer. (1) A city contractor is a "covered employer" for any city contract where the value is or is projected to be $25,000.00 or more. A city contractor ceases to be a covered employer for a city contract upon termination of that contract. (2) A beneficiary is a "covered employer" if it receives city financial assistance with a combined value that is (or is projected to be) valued at $100,000.00 or more for any 12-month period. A beneficiary is a covered employer for all existing city financial assistance agreements from the beginning of the term of the city financial assistance agreement that causes the cumulative value of all city financial assistance agreements received by the beneficiary to exceed $100,000.00. A beneficiary ceases to be a covered employer ten years after the later of the following dates: the date upon which its most recent applicable city financial assistance agreement was executed; or the date upon which it ceased to receive applicable city financial assistance. (3) A subcontractor is a "covered employer" beginning on the later of the following dates: (a) the beginning of the term of the subcontract; or (b) the date on which the subcontractor's associated contractor or beneficiary becomes a covered employer. A subcontractor ceases to be a covered employer on the earlier of the following dates: (a) the termination of the subcontract; or (b) the date on which the subcontractor's associated contractor or beneficiary ceases to be a covered employer. A subcontractor is not a covered employer through a beneficiary of a city financial assistance agreement that does not cause the beneficiary to be a covered employer or where the beneficiary is not otherwise a covered employer at the execution of the subcontract. (4) Prior to entering into a subcontract, a city contractor, beneficiary, or other covered employer shall notify subcontractors in writing of the requirements and applicability of this article. (5) City contractors and beneficiaries shall be deemed responsible for violations of this article by their subcontractors. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-805 Covered employee.

Sec. 70-805. - Covered employee. (1) Employees of covered employers are covered employees for all hours they perform work: (a) pursuant to a city contract; or (b) directly related to, or arising from, the project or purpose for which city financial assistance was provided. (2) Where a covered employer cannot determine which of its employees perform work relating to a city contract, all of its employees shall be covered employees. (3) Student interns and unpaid volunteers are not covered employees. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-806 Living wage required.

Sec. 70-806. - Living wage required. (1) Every covered employer shall pay covered employees no less than the living wage for all hours worked as a covered employee. The living wage shall be as follows: (a) The living wage payable pursuant to any city contract or city financial assistance agreement, or any extensions thereof, shall be $11.19 per hour for any work performed on or before December 31, 2021. (b) The living wage payable pursuant to any city contract or city financial assistance agreement, or any extensions thereof, shall be $13.25 per hour for any work performed during calendar year 2022. (c) The living wage payable pursuant to any city contracts or city financial assistance agreement, or any extensions thereof, shall be $15.00 per hour for any work performed during calendar year 2023. (d) The living wage payable pursuant to any city contract or city financial assistance agreement, or any extensions thereof, for work performed during calendar 2024 before August 1, 2024 shall be $15.00 per hour plus any adjustment provided in subsection (2). (e) The living wage payable pursuant to any city contract or city financial assistance agreement, or any extensions thereof, for work performed on August 1, 2024 or thereafter shall be $15.56 per hour plus any adjustment provided in subsection (2). (2) The living wage shall be annually adjusted for inflation, as defined by the Consumer Price Index calculated by the U.S. Bureau of Labor Statistics as applied to the South Region, except that in no instance shall the living wage be adjusted downward. The first adjustment shall become effective on January 1, 2024 using the Consumer Price Index figures provided for the preceding calendar year, and thereafter on an annual basis. (3) The designated department shall make the current living wage rates publicly available, including on the city's website. (4) The living wage applicable to any city contract or city financial assistance agreement with a term of longer than one year, inclusive of any renewal terms or extensions, shall be subject to section 70-813. (M.C.S., Ord. No. 26521, § 1, 8-6-15; M.C.S., Ord. No. 28718, § 1, 7-1-21; M.C.S., Ord. No. 30012, § 1, 8-8-24)

New Orleans City Code § 70-807 Compensated leave.

Sec. 70-807. - Compensated leave. (1) Covered employers shall permit covered employees to take at least seven days per year of compensated leave. (2) Such leave may be taken for medical or dental visits and may be taken without prior notice to the covered employer when an employee or a member of his or her immediate family is sick. (3) When the need to take leave is foreseeable, covered employers may require reasonable advance notice of a covered employee's intent to use compensated leave. (4) Such leave shall be accrued and used on a prorated hourly basis at a rate of not less than three minutes per hour worked up to seven days of accrued leave. (5) Covered employers that pay their lowest paid covered employees at least 30 percent more in hourly wage rate than the applicable living wage shall be exempt from the compensated leave requirement. (6) If supported by adequate documentation, the prorated hourly cost of health benefits provided by an employer to a covered employee shall be considered in determining whether an employer qualifies for the exemption provided in section 70-807(5). The prorated hourly cost of health benefits shall not be considered in determining whether an employer meets the living wage requirements set forth in [section] 70-806. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-808 Retaliation prohibited.

Sec. 70-808. - Retaliation prohibited. (1) No covered employer shall discharge or take other adverse action against any person in retaliation for asserting in good faith any claim or right under this article, for assisting any other person in doing so, or for informing any person about their rights. (2) No covered employer shall reduce any wages or benefits due any employee, covered or not, to offset the costs associated with work covered by this article. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-809 Waiver and exceptions.

Sec. 70-809. - Waiver and exceptions. (1) Participants in the JOB1 Youth Works program, youth employed as part of any city-subsidized summer youth employment program, and individuals receiving job-skills preparation through a program subsidized or funded through city financial assistance shall not be considered covered employees. (2) Student interns and unpaid volunteers are not covered employees. (3) Workers covered by section 70-416 of this Code shall not be considered covered employees under this article. (4) Parties subject to this article may by collective bargaining agreement provide that such agreement shall supersede the requirements of this article all or in part. (5) By council motion, waivers and exceptions to this article may be made when reasonably appropriate, provided that the provisions of this article are met to the extent practicable. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-810 Monitoring.

Sec. 70-810. - Monitoring. (1) Every covered employer shall be deemed to have agreed to the payment of a living wage as a condition of entering into or renewing a city contract, or receiving city financial assistance, and shall: (a) post a notice in a prominent place regarding the applicability of this article in every workplace in which covered employees are working that is within employer's custody and control; and (b) provide payroll records or any other documentation deemed necessary to ensure compliance with this article within ten business days from the city's request. (2) Prior to entering into a city contract or city financial assistance agreement, a covered employer shall submit all required documentation to the designated department indicating compliance with this article. (3) The director of the designated department shall ensure that all city contracts and city financial assistance agreements comply with Civil Service Rule III Sec. 6.1-6.6 and shall provide such information to the civil service commission as is required for its review and approval. (4) Any person may submit a complaint or report of a violation of this article to the designated department. Upon receipt of such a complaint or report, the designated department shall investigate to determine if there has been a violation. The investigation shall be resolved within 90 days. (5) Failure to comply with the requirements of this article shall be deemed a material breach of the city contract or city financial assistance agreement. (6) The designated department of the city shall monitor the compliance of each covered employer under rules and regulations developed by the designated department and approved by the mayor. (7) As part of its annual budget presentation, the designated department shall present a written report to the council detailing its efforts to monitor compliance with this article. This report, which shall be presented in connection with the mayor's annual budget presentation, shall identify each city contract or city financial assistance agreement involving a covered employer and, for each, shall identify (a) the hourly wage earned by the lowest paid covered employee and (b) the number of days of compensated leave received by employees earning less than 130 percent of the then-prevailing living wage. (M.C.S., Ord. No. 26521, § 1, 8-6-15; M.C.S., Ord. No. 28387, § 1, 7-2-20)

New Orleans City Code § 70-811 Penalties and enforcement.

Sec. 70-811. - Penalties and enforcement. (1) A violation of any provision of this article is a civil infraction punishable by a fine of not more than the maximum fine for the Municipal Court of the Parish of Orleans plus all costs of the action. Any court of competent jurisdiction may issue and enforce any judgment, writ, or order necessary to enforce this article, including back pay to affected employees and other relief deemed appropriate. (2) Each day upon which a violation occurs shall constitute a separate violation. (3) In addition to enforcement under subsections (1) and (2), the city shall have the right to modify, terminate, and/or seek specific performance of any city contract or city financial assistance agreement with a covered employer or to cancel, terminate or suspend the city contract in whole or in part and/or to refuse any further payments under the city contract or city financial assistance. The city may also debar the covered employer from receipt of city contracts or city financial assistance for a period not to exceed two years. (4) Nothing contained in this article shall be construed to limit in any way the remedies, legal or equitable, which are available to the city or any other person for the correction of violations of this article. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-812 Effective date.

Sec. 70-812. - Effective date. This article shall take effect on January 1, 2016. (M.C.S., Ord. No. 26521, § 1, 8-6-15)

New Orleans City Code § 70-813 Multi-year agreements.

Sec. 70-813. - Multi-year agreements. Any city contract or city financial assistance agreement with a term of longer than one year, inclusive of any renewal terms or extensions, shall provide for appropriate annual adjustments to ensure that the living wage payable during any given year of the agreement corresponds to the then-current living wage for that year, as set forth in section 70-806. (M.C.S., Ord. No. 28387, § 2, 7-2-20; M.C.S., Ord. No. 28718, § 1, 7-1-21)

New Orleans City Code § 70-822 Guaranteed base wage for musicians.

Sec. 70-822. - Guaranteed base wage for musicians. (a) For purpose of this section, the following terms shall have the following meanings: (1) "Musician" means any person engaged in the act of musical performance, whether individually or as part of an ensemble, and includes vocalists, DJs or deejays, conductors, and persons playing musical instruments. The term does not include non-musical accompaniment, such as back-up dancers, or individuals employed to produce a musical performance, such as sound technicians, managers, and other staff; and (2) "Musical act" means one or more musicians engaged to provide a musical performance and includes bands, marching bands, orchestras, and any other type of musical ensemble or group. (b) Except as otherwise provided herein, any musical act compensated with public funds for a musical performance shall be paid, excluding tips or other gratuities, at least $200.00 per musician, per hour of actual musical performance, with a minimum compensation of $200.00 per musician for a performance. A musical act with ten musicians or more shall be paid at least $2,000.00 per performance. Nothing herein shall prohibit the city or any public agency from paying in excess of the minimum wage or preclude the city from paying additional monies, at an agreed-upon rate, to compensate non-musician members of a musical act or for the time associated with non-performance elements of an engagement, such as loading, unloading and sound checks. (c) The musician minimum wage set forth in the preceding subsection shall be required in circumstances where the city, a political subdivision established in the Home Rule Charter, or a city-owned corporation: (1) Contracts directly with a musical act for a musical performance, or (2) Contracts with a third party to stage an event featuring a musical performance, unless the contract contains a provision asserting that no public funds payable under the contract will be used to fund or subsidize the cost of the musical performance. (d) The provisions of this section shall not apply to performances by groups whose members are uncompensated volunteers, such as school musical groups and musical groups affiliated with religious institutions. (e) Nothing herein shall prohibit any musical act agreeing to provide services to the city without compensation, or at a reduced rate, provided that the city shall not unreasonably solicit uncompensated musical performances from musical acts or otherwise engage in practices intended to circumvent the minimum wage set forth herein, such as engaging a musical act to work on a tips-only basis. (f) The musician living wage thresholds established herein shall be annually adjusted for inflation, as defined by the Consumer Price Index calculated by the U.S. Bureau of Labor Statistics as applied to the South Region, except that in no instance shall the living wage be adjusted downward. The first adjustment shall become effective on January 1, 2026 using the Consumer Price Index figures provided for the preceding calendar year, and on January 31 each year thereafter. (g) When the city, a political subdivision established in the Home Rule Charter, or a city-owned corporation expends public funds for a musical performance, each entity shall submit a quarterly report to the clerk of council listing the name of the musician or musical act, the duration of the musical performance, and the amount of compensation provided to the musician or musical act as well as any additional compensation provided for services including but not limited to loading, unloading, and soundcheck. (M.C.S., Ord. No. 29990, § 1, 7-25-24)

Source: City of New Orleans, Code of Ordinances and Home Rule Charter (Municode Library, library.municode.com)URL: https://library.municode.com/la/new_orleans/codes/code_of_ordinances?nodeId=PTIICO_CH70FI_ARTVIIILIWAORFetched: 10/28/2026