American University
PAE-11: Sustainable Compensation

The following memo was issued on August 21, 2013, updating the university's wage policy. TO: Deans, Directors and Department Heads FROM: Beth Muha, Assistant VP of Human Resources DATE: August 21, 2013 SUBJECT: Updates To Wage and Benefits Policies We are pleased to announce that this fall, American University will update its wage and benefits policies for its lowest paid workers. As part of American University’s continued commitment to social responsibility, the university will increase its base wage, often referred to as a “living wage,” and increase the salary cut-off for an additional medical plan subsidy. The increase in the base wage continues the university’s practice started in 2002 that calls for a minimum hourly wage that assures that even the lowest paid employees of our campus community can live decently within the economic structure of the greater Washington, DC geographic region. Effective September 1, 2013, AU’s base wage will increase from $12.50 to $14.15 per hour, and increase again to $14.45 per hour, effective September 2014. The rates compare favorably with the living wage policies established by other local universities and municipalities. AU’s policy covers all full-time, non-union, staff employees of the university, as well as employees of multi-year service contracts and persons employed regularly on campus (except first-year Dining Services or entry-level Housekeeping Services employees). Future changes to base wages will depend on factors described in the Wage Policy. The university also will increase the salary cut-off for the additional medical plan subsidy that it provides to its lowest paid employees. Currently, full-time AU employees earning $25,000 or less per year pay 5 percent of the total cost of individual coverage with either Kaiser or CareFirst, compared to 20 percent charged to higher paid employees. Effective January 1, 2014, the cut-off for additional subsidy will increase to $35,000 per year, thereby covering additional lower paid workers. The changes to AU’s wage and benefits policies not only ensure that the university continues its long-standing commitment to social responsibility, but help to continue to attract and retain the best staff possible. For more information on the updates to the wage and benefits policies, contact compensation@american.edu