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2017 UA Minimum Wage Increase

Friday, December 2, 2016

To:

University Colleagues

From:

Andrew C. Comrie, Senior Vice President for Academic Affairs and Provost
Gregg Goldman, Senior Vice President for Business Affairs and Chief Financial Officer
Allison M. Vaillancourt, Vice President for Business Affairs and Human Resources

Date:    

December 2, 2016

RE:

2017 UA Minimum Wage Increase 

 

You may know that most Arizona employers are increasing their minimum wage as a result of the recent passage of the Arizona Minimum Wage and Paid Time Off Initiative (Proposition 206). As a state agency, the University of Arizona is exempt from the new regulation, however we believe increasing compensation gives us a competitive advantage in attracting and retaining a quality workforce.

While we are committed to raising our minimum wage, we want to do so thoughtfully and strategically. Therefore we will raise our minimum wage from $8.05 to $10.00 per hour effective July 3, 2017. We believe this is a fiscally responsible approach that will give us time to build the increase into our FY18 budgets and planning.

Details about the minimum wage increase follow.

 


Who is affected?

Raising the minimum wage will affect the pay ranges for classified staff in pay grades 12 - 21, and Student Groups B and C. The pay range minimum for all these classifications will increase from $8.05 to $10.00. Departments are encouraged to review the cost impact, including ERE, the new minimum wage will have on departmental budgets and adjust operational plans accordingly.

When will employees and student workers see a change in their paychecks?

The new rate will appear on July 21, 2017, paychecks.

Do I have to do anything?

Pay adjustments to bring employees and student workers to the new $10 per hour minimum wage will be managed by Human Resources.

Who will fund the new minimum wage?

Departments will be responsible for funding the new minimum wage.

How do I determine affected individuals in my unit?

To identify the employees and student workers in your unit receiving minimum-wage related-increases, go to the Minimum Wage dashboard in UAccess Analytics (Employee> Compensation> Arizona State Minimum Wage). The data on this report will be updated daily until July 30, 2017. After that date, the initial data will be replaced with a static report documenting the actual changes processed during that payroll cycle.

Is my department required to increase the pay of employees and students already at or above the $10 per hour threshold?

If adequate funds are available, departments may wish to adjust salaries. This will be a local decision.

Proposition 206 calls for the minimum wage to be adjusted to $10.50 in 2018; $11.00 in 2019; and $12.00 in 2020. Will the same process be used to make adjustments in future years? 

Announcements about additional adjustments will be made at a later date.

The Initiative also included changes to sick time accrual. How does this affect us?

The University continues to evaluate the impact of changes to sick time accrual practices and more information will be available shortly.

Have questions? Contact the Division of Human Resources at:

Main Campus
Phone: (520) 621-3660
hrsolutions@email.arizona.edu

UA Health Sciences
Phone: (520) 626-5593
hrsolutions@email.arizona.edu

Phoenix Biomedical Campus
Phone: (602) 827-2600
hrsolutions@email.arizona.edu