FORT WORTH, Texas — Several Fort Worth City Council members are pushing for a significantly higher minimum wage for all city employees.
The raises would be included in the city's fiscal year 2025 budget, which begins in October. Now, the city's minimum wage is $15.45. In a letter to City Manager David Cooke, councilmembers Jared Williams and Chris Nettles argue the city has a responsibility to ensure its employees can afford "basic necessities."
They, along with other councilmembers, are asking the city to increase the city's hourly minimum wage to $20 per hour.
City staff are recommending a much lower 4% raise to the city's minimum wage, Dianna Giordano, director of human resources said in a presentation to the council Tuesday. The raise would bring the minimum wage to $16.07 and 121 employees would get an automatic raise. The raise would have a total impact of about $680,000.
Under the council members' proposal, 773 employees would get a raise. Staff estimates the total impact of the change would be about $117 million. Currently, the city lags behind other large Texas cities. Dallas, Austin and San Antonio all have a minimum wage of $18 and above.
“I think we should take a strong approach, a bold approach,” Nettles said at the meeting.
Giordano said raising the minimum wage could hurt higher-skilled workers who are currently making more than minimum wage but less than $20 an hour. If the council members' proposed raise moves forward, those higher-skilled workers would have the same pay rate as lower-skilled workers currently making the city's minimum wage.
The raise would create a phenomenon called wage compression when employees with different levels of experience or skills receive similar pay.
"What I hear from our field workers is, 'Hey it's great that you increased minimum wage but what about me?'" Giordano said.
She also proposed commissioning a compensation study to help the city better understand employees' circumstances and pay.
Williams argued that the city's current minimum wage would make it challenging for a household of two to pay for rent and basic necessities like food and childcare. If the council passes a minimum wage increase now, it can consider giving those higher-skilled workers a pay raise later, Williams said.
"Employees who are getting paid $15 an hour cannot wait another minute, they can’t wait another year for a study," Williams said.
While at least five members of the 12-person council were vocally supportive of a $20 minimum wage, others were skeptical.
Councilmember Macy Hill said the city can't spend more than it earns and the council will have to take a hard look at where the city can save money if it were to move forward with this action. Wage compression could make it more difficult for the city to fill jobs that require a higher skill level, Councilmember Charles Lauersdorf said.
The city has granted raises to 911 operators and lifeguards when positions were becoming increasingly difficult to fill, councilmember Elizabeth Beck said. By increasing wages across the board, the city could retain more employees, she added.
The council did not make a decision Tuesday but requested more information from the human resources department. The budget will likely be finalized in September.
