Durham Council reviews minimum livable wage for part-time employees amid budget concerns

The Durham City Council Work Session on June 5, 2025, focused on the implementation of a minimum livable wage (DMLW) for part-time employees, addressing significant concerns about pay equity and budget implications. The session featured a presentation by Jim Rinegruber, Assistant Director of Human Resources, who outlined various scenarios for adjusting pay structures to meet the DMLW.

Rinegruber emphasized the need for a pay plan that balances fairness, affordability, and justice, noting that these values often conflict. He recommended against immediate changes to the pay structure, citing concerns about equity and the financial burden on the city. The council discussed the implications of raising part-time wages, particularly for noncommensurate positions, which are not directly comparable to full-time roles.

The presentation revealed that a significant number of part-time employees currently earn below the proposed DMLW of $21.90. Specifically, 234 out of 267 noncommensurate employees were projected to remain below this threshold after proposed adjustments. Rinegruber presented several options for addressing this issue, including a pay-for-performance model that could cost approximately $270,000 but would still leave many employees under the DMLW.

Council members expressed concerns about the potential for wage compression, where employees with different responsibilities might end up earning the same wage, which could undermine morale and job progression. They also highlighted the risk of negatively impacting employees who rely on part-time work for supplemental income, as raising wages could affect their eligibility for benefits.

Council Member Reyes suggested a phased approach over the next few years to gradually raise part-time wages while considering the financial implications and the need for accessible entry-level positions. The city manager agreed to explore this option further, indicating a willingness to develop a comprehensive plan that aligns with the council's values of fair compensation.

The meeting concluded with a commitment to revisit the issue, ensuring that any changes made would be thoughtful and considerate of the diverse needs of the city's workforce. The council plans to continue discussions on how to effectively implement the DMLW while maintaining a balanced and equitable pay structure for all employees.