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Court Upholds ‘Living Wage’ Law in Hudson County

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in Compensation and Benefits,Human Resources

Hudson County's Living Wage Law has survived a constitutional challenge brought by a county contractor. The suit alleged that the law imposed restrictions on some businesses but not others, which violated the 14th Amendment's equal protection clause.

A county judge sided with the contractor and said the law also violated state contract-bidding laws. But the county appealed and the Superior Court let the law stand, saying it served a legitimate public-policy interest and treated all similarly situated contractors equally. Therefore, it was constitutional.

Under Hudson's Living Wage Law, county service contractors that employ security, food service and janitorial staff who work at least 20 hours per week must pay them at least 150 percent of the federal minimum wage. They must also provide health benefits and one week's paid vacation.  

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