CTA Ordinance to Require Contractors to Pay Minimum Wage of $13

October 15, 2014

The Chicago Transit Authority (CTA) Board today approved an ordinance that will require all CTA contractors and subcontractors to pay their eligible employees a minimum wage of $13 per hour.

The CTA becomes the first Chicago sister agency to raise the minimum wage requirement following a September 3, 2014, executive order signed by Mayor Rahm Emanuel, which requires a $13 per hour minimum wage for similar work performed under City of Chicago contracts.

“We are committed to the Mayor’s goal of making sure our purchasing power helps ensure a fair working wage,” said CTA President Forrest Claypool. “A strong minimum wage not only helps hardworking families but also helps stimulate the economy.”

The ordinance takes effect for contracts advertised starting November 15, 2014. According to CTA, the contracts most likely to be affected by the ordinance include those for work or services being performed on CTA property or jobsites such as landscaping, janitorial services, snow removal and security. Contracts with not-for-profits and any agreement related to real estate are not covered.

The CTA will establish rules to monitor compliance with the ordinance, including procedures for eligible contractor employees to report violations. Contractors and subcontractors who do not comply with the ordinance will risk losing their CTA business.

The CTA will promote the new minimum wage requirements in all of its upcoming procurement efforts and will post the ordinance and rules on its website, www.transitchicago.com.

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