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Committee asks CAO for study on requiring city contractors to pay $20 minimum; union urges immediate ordinance
Summary
The committee approved a resolution directing the CAO to study fiscal, operational and implementation options for requiring janitorial and security contractors working for the city to pay Richmond's $20/hour minimum wage and to return recommendations by Nov. 1, 2025. SEIU urged immediate legislative action in public comment.
The Finance and Economic Development Standing Committee voted to forward a resolution asking the city’s Chief Administrative Office to study the fiscal, operational and legal considerations of requiring janitorial and security contractors under city contracts to pay Richmond’s city minimum wage (currently $20 per hour) and to provide recommendations for implementation by Nov. 1, 2025.
Tremaine Johnson, lead organizer with SEIU 32BJ, gave public comment in support of a living-wage ordinance and urged the council to adopt an ordinance this summer rather than converting the proposal into a study. Johnson said a study risks “unnecessary delays in delivering life-changing wage increases” for workers who are already organizing and cited union-submitted cost analyses showing limited fiscal pressure on the city.
During committee discussion, members emphasized they expect the CAO study to provide detailed cost estimates, timing options and implementation alternatives — including whether contracting rules and procurement scoring could be adjusted to prioritize contractors that pay union wages or meet the city minimum wage. Several members asked the administration to consider limiting contract durations for upcoming procurement cycles so new contracts do not lock in lower wages before the committee’s work is concluded.
The committee voted to forward Resolution 2025-R19 to Council with a recommendation to approve and asked that the CAO deliver the requested study and recommendations by Nov. 1, 2025. Several councilmembers said they supported inclusion of the city minimum wage requirement in future contracts as a policy objective; the resolution itself directs the CAO to assess methods and costs rather than immediately changing procurement rules.
