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News Release

May 8, 2006


Diane Peck, Human Resources: (650) 725-3334,

Stanford raises living wage for subcontracted workers

Stanford University will raise the living wage rate it requires contractors to pay their employees by more than 10 percent, President John Hennessy announced Monday.

The university decided to adjust the wage rates after reviewing comparable rates for a range of Bay Area municipalities that have living wage policies. Stanford raised the wage minimum for subcontracted employees who work on the university campus and receive health benefits from their employers to $11.15 per hour—a 10.4 percent increase. It raised the wage minimum for subcontracted employees who work on the university campus and do not receive health benefits to $12.59 per hour—a 10.9 percent increase. The new wage rates go into effect Sept. 1, 2006, the beginning of Stanford's fiscal year.

The analysis of wage rates, performed by human resources staff, was consistent with the approach taken when the university reviews market data to determine its own staff salary levels.

"I am pleased our recommendation to President Hennessy to adjust our living wage rates has been accepted," said Diane Peck, executive director of human resources. "I believe this adjustment is consistent with Stanford's long history of concern for all people who are part of the university community. It is a commitment that is a critical part of Stanford's desire to achieve its mission of excellence in teaching and research."

Stanford established living wage guidelines for subcontracted employees in April 2003. The policy became effective as new contracts were established or existing contracts were renewed or extended. The policy calls for a regular review of wage and benefit minimums. Because of the rolling start date for the policy, the first review was conducted early this year. Successive reviews will be undertaken on an annual basis.

The policy covers subcontracted employees who work on the university campus. In addition to setting wage minimums, the policy also requires subcontractors to provide 10 paid days off per year for eligible employees.

The guidelines apply to contractors whose nonunion employees provide basic services such as maintenance, grounds keeping, housing and food service that might otherwise be performed by hourly employees hired directly by Stanford. They do not apply to workers represented by a collective bargaining unit or employees at Stanford Linear Accelerator Center, Stanford Hospital and Clinics, or Lucile Packard Children's Hospital.


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