Office of Inspector General
City of Chicago
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Report of the Office of Inspector General: *************************
A udit of Contra ctor Compliance
WITH THE
Chicago Base Wage Ordinance
Originally issued November 2017, but retracted and replaced in July 2018 with this corrected report.
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July 2018
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866-IG-TIPLINE (866-448-4754) www, chiccigoiiispcctorgeneral.org
Joseph M. Ferguson Inspector General
OFFICE OF INSPECTOR GENERAL
City of Chicago
740 N. Sedgwick Sired, Suite 200 Chicago, Illinois 60654 Telephone: (773) 478-7799 Fax: (773) 478-3949
July 03,2018
To the Mayor, Members of the City Council, City Clerk, City Treasurer, and residents of the City of Chicago:
In November 2017, the City of Chicago Office of Inspector General (OIG) completed an audit to determine if security guard and janitorial service contractors and subcontractors complied with the Chicago Base Wage Ordinance. Similar to living wage laws adopted by cities nationwide, the purpose of the Ordinance is to ensure that City contractors and related subcontractors pay their employees in excess of poverty-level wages, both as a matter of principle and as a means of stimulating the local economy.
Our original report inaccurately reported that three subcontractors were not compliant with the Chicago Base Wage Ordinance. In June 2018, the Department of Procurement Services (DPS) provided documentation that identified an error in OIG's analysis and showed the subcontractors were in virtually complete compliance with the Ordinance. The contractors and subcontractors had provided OIG a set of employee data, some of which related to City of Chicago contracts and some of which did not. OIG inadvertently included both categories of data in our original analysis. We regret that our existing quality control procedures did not discover and address this error. Although we are confide...
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