A living wage is the minimum amount of income required to meet a person’s basic needs. AJP standards require that employers must either 1) pay employees living wages, calculated for the local conditions; or 2) meet several conditions:
- show the farm’s accounting to employees in order to explain why they can’t afford to pay livings wages yet;
- negotiate wages with employees;
- work with employees to develop a plan to raise revenues and lower costs, in order to achieve living wages;
- raise wages when profits increase;
- pay the highest paid employee not more than 8x the lowest paid employee.
The same requirement applies to wholesale buyers, who must either 1) pay suppliers a price that covers the actual cost of production, including living wages for all employees and owners; or 2) buyers must document their inability to pay a fair price by sharing their financial records and negotiate a price in good faith.
To learn more and calculate the living wage for your workplace, see AJP’s Living Wage Calculation Worksheet, Links, & Guidance.