Stanford University
PAE-11: Sustainable Compensation

Since September 1, 2007, Stanford University has recognized the importance of paying a living wage to all service workers at Stanford, whether they are directly employed by Stanford or by contractors. This applies to services performed on the core campus premises (including the Stanford Linear Accelerator Center) that Stanford might otherwise perform with directly hired hourly paid employees. This applies to contractor employees not represented under a collective bargaining relationship.

Stanford further recognizes that a living wage and other benefits enhance the quality of an individual’s work experience. Stanford already pays a living wage to its employees and now adopts this living wage and benefit policy to guide its procurement of such services from contractors. Through these guidelines, Stanford seeks to establish minimum pay, access to healthcare benefits and compensated time off for service workers. These guidelines are not intended to prevent contractors from providing wages and benefits in excess of the minimums created here.

The wage guidelines are two tiered, with an identified minimum living wage established if the employer provides a health plan, and a higher minimum living wage required if no health benefits are provided.

The living wage is set at a minimum as noted below:

Minimum Living Wage: Current and Past Wages

Effective Date Wage w/ Health Benefits Wage w/out Health Benefits
09/01/2011 $11.98/hr $13.63/hr
09/01/2010-08/31/2011 $11.88/hr $13.49/hr
09/01/2009-08/31/2010 $11.70/hr $13.37/hr
09/01/2007-08/31/2009 $11.15/hr $12.59/hr

The date of the last living wage review of all employee records was May 2011. Staff Compensation reviews all active employee records to ensure all are earning the minimum living wage according to Stanford's policy. If any employees are not earning the minimum living wage, the host department is notified that a record change must occur on or before the following September 1st to increase the living wage to at least the minimum. This review is done annually, each spring.

NOTE 001:
The employee count includes benefits-eligible employees (faculty and staff, including bargaining unit [union] employees) as well as temporary and casual employees who are currently being paid by Stanford.

NOTE 002:
Employees of vendors/contractors that are paid directly by that vendor/contractor, even though working on the Stanford campus are not included in the employee count data. Human Resources does not have access to those records to ensure they are paid a living wage; Stanford Procurement typically includes verbiage in contracts stating the university’s recommendation that the vendor/contractor pay at least the minimum living wage to their employees working on the Stanford campus.