American University
PAE-11: Sustainable Compensation

American University is committed to ensuring that hourly wages are fair and comparable to those paid by other universities and municipalities in the greater Washington, D.C. area, from which AU draws its staff. In 2002, the Board of Trustees adopted a “wage policy” stating: 1. The university wage policy will assure that the lowest paid employees of our campus community can live decently within the economic structure of the greater Washington geographic region from which AU draws its staff. 2. The wage policy will contain the following conditions: a. It will be based on the demographics of the region from which we draw our employees, as well as the general practices reflected in other wage policies. b. It will be set at a rate that is competitive with rates paid by other universities and municipalities in the region. c. It will fit within AU’s existing compensation system as the framework within which it will be institutionalized and maintained. d. The wage rate will be increased when the salary band structure is adjusted e. The policy will cover all full-time, non-union, staff employees of the university. f. Employees of multi-year service contracts and persons regularly employed on campus -- except first-year (Dining Service) or entry-level (Housekeeping Service) employees -- will be covered by the policy. The university wage policy, as implemented, has set the following actual minimum wages: • Effective September 1, 2006, base wage $11.25 per hour. • Effective September 1, 2007, base wage $11.50 per hour. • Effective September 1, 2008, base wage $12.25 per hour. • Effective September 1, 2009, base wage $12.25 per hour. • Effective September 1, 2010, base wage $12.50 per hour.