'Rocky's loophole' criticized

In recent months, Salt Lake City Mayor Rocky Anderson has fired some verbal arrows at the Utah State Legislature.

Tuesday, one senator shot back — with legislation that would cripple Utah's living-wage movement, a movement near and dear to Anderson's heart.

One Salt Lake County Council member openly wondered if the effort by Sen. Howard Stephenson, R-Draper, was really about good public policy or designed to punish Anderson, who called state lawmakers "extremist Republicans" earlier this month.

"Is this really a bill to change public policy or is this a bill just to attack Rocky Anderson?" Councilman Joe Hatch said.

And while the measure may be aimed at Anderson, it's being panned throughout Salt Lake City — by City Council members, County Council members and living-wage advocates alike.

Stephenson on Tuesday introduced SB139 — legislation that would forbid cities, counties and towns from giving preference to contractors who pay "living wages."

The proposed bill is designed to close "Rocky's loophole," Stephenson said.

Last year, Anderson signed an administrative rule ordering the city to adopt a point system that gives preference to contractors who pay their employees a living wage, defined as $9.06 hourly (the federal poverty guideline for a family of four) with health benefits, or $10.56 without health care.

Contractors who were within a small percentage of the lowest bid and paid a living wage — when up against contractors who didn't pay a living wage — would be given preference, under Anderson's rule, which is set to go into effect this March.

Stephenson's bill would basically make Anderson's rule null and void for all city contracts signed after May 2, 2005. The Draper senator said he considers Anderson's rule a violation of federal law, which sets the minimum wage at $5.15 per hour.

"They're circumventing the law," he said. "The state statute is very clear. We intend to make it even more clear. We didn't anticipate these kinds of shenanigans in circumventing the law so we are proposing something that will close the loop, Rocky's loophole."

Stephenson, who also heads the Utah Taxpayers Association, which has deep ties to big business, said local restaurants and caterers, who often pay low wages, were most worried about Anderson's rule.

Stephenson spurred passage of legislation in 2001 that prohibits local governments from enacting living-wage laws — which force contractors doing business with those governments to pay a living wage — but it didn't prohibit cities from considering wage when awarding contracts.

Anderson said Stephenson's move was expected. He challenged the lawmaker, and any others who would support Stephenson's effort, to try to live on $5.15 an hour.