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Tuesday, December 19, 2006
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Minimum wage amendment and resulting action plan for the university

Editor's note: The following is a memo that was distributed to deans, directors, department heads and budget unit managers from University Human Resources.

ATHENS, Ohio (Dec. 19, 2006) -- The purpose of this communication is to provide you with important information regarding the university's implementation of minimum wage increase that will occur as a result of the passage of the constitutional amendment.  The increase raises the minimum wage from $5.15 per hour to $6.85 per hour.  At Ohio University, this change will only impact student employees.  The university's current action plan includes:

Remainder of Fiscal Year 2007

  • Effective Jan. 1, 2007, the minimum wage in Ohio will increase to $6.85/hour.

  • The WorkForce system will automatically make all adjustments to all student employees currently making less than $6.85/hour; the adjustment will be to raise the students' wage rate to $6.85.  Students making more than $6.85 will not be adjusted for the remainder of the fiscal year.

  • The adjustment will take place on Dec. 24, the beginning of the first pay period with hours earned in 2007 [the pay raise will be effective for this entire pay period and all of calendar year 2007.]

  • The central university will provide funding allocations to planning units to cover the anticipated costs of bringing all regular students funded by either the General Fund or by General Fund supported auxiliaries, for the remaining twelve pay periods in Fiscal Year 2007.  Students funded by Regional Higher Education, College of Osteopathic Medicine, and auxiliary accounts will also receive the requisite raise, but each budget unit manager of these non-general fund accounts will be required to determine the source of the required raise amount.

  • The general fund allocation is intended to cover the cost increase for the balance of this fiscal year on a ONE-TIME basis. This will not be a base adjustment for the current fiscal year.  The university's budget office staff will soon be communicating additional information to you including budget enhancement figures.

  • Students funded by PACE or Work Study funds will need to have their work hours properly monitored and adjusted downward to assure they don't exceed the maximum allowable earnings.  The Office of Student Financial Aid and Scholarships will be in contact with employing units, regarding PACE students and their funding status prior to Jan. 1.

  • Questions regarding student hourly employees should be directed to the payroll office.

Fiscal Year 2008 and beyond

  • Vice President Decatur has asked University Human Resources to organize and  lead cross-functional teams to address:

    1. The record-keeping requirements of the law change

    2. The development of a student pay plan to address equity and compression issues.

    These teams will keep the university informed of plans and progress.

  • The continuing budgetary impact and alternative funding strategies (including the funding of future wage increases and the Sept. 30 Price Index assessment) will be discussed as part of the FY 2008 budget development process.

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Media Contact: Media Specialist George Mauzy, (740) 597-1794 or mauzy@ohio.edu

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