What does the new Fair Wage/Fair Work plan do?

This new plan, implemented by President Napolitano, will increase the minimum wage to $15 per hour, over the course of the next three years, for UC employees hired to work at least 20 hours a week. The plan also requires that UC’s service contractors guarantee their workers the UC minimum wage for workers assigned to UC projects.

Whom does the plan affect?

The plan affects any UC employee currently hired to work at least 20 hours a week and earning less than the newly created UC minimum wage. It also affects anyone working for a third-party with whom UC contracts for services, for any new contract or contract renewal beginning October 1, 2015.

When will the new plan take effect for UC employees?

The plan will take effect beginning this October, and minimum hourly pay will increase in phases as follows:

  • At least $13/hour beginning October 1, 2015
  • At least $14/hour beginning October 1, 2016
  • At least $15/hour beginning October 1, 2017

When will the new plan take effect for workers employed by service contractors supporting UC?

Beginning with any new request for proposals issued after October 1, 2015, any new contract or any contract renewal by UC for services will require the contractor to pay its workers the UC minimum wage. The UC minimum wage will equal:

  • At least $13/hour beginning October 1, 2015
  • At least $14/hour beginning October 1, 2016
  • At least $15/hour beginning October 1, 2017

Why is the plan being implemented in phases?

Each UC campus and medical center will fund increases for its personnel. The plan is being phased in to allow locations time to plan and budget for the cost of full implementation. A phased approach follows the method adopted by California municipalities that have raised their local minimum wage.

What is the source of funding for the new plan?

The overwhelming majority of the cost of the new policy will come from non-core funds, including sales and service revenue. Generated by the University’s self-supporting enterprises, these revenues are separate from the tuition and fees, state resources and other core funds that support UC’s core instructional programs.

Is UC the first public university to enact a minimum wage plan?

UC is the first public university in the United States to voluntarily establish a minimum wage of $15 per hour.

Will the new plan apply to outside contractors doing business with UC?

Yes. Outside contractors providing services to UC will be required to pay workers providing services to UC a wage equal at least to the UC minimum wage, upon the renewal of their contract or establishment of a new contract after October 1, 2015. The UC minimum wage will equal:

  • At least $13/hour beginning October 1, 2015
  • At least $14/hour beginning October 1, 2016
  • At least $15/hour beginning October 1, 2017

How will UC ensure contractors comply with the $15 per hour minimum wage requirement?

UC is creating the following mechanisms to ensure contractors comply with this plan:

  • Worker hotline: A new telephone hotline (855-WAGES-UC) allows workers employed by UC contractors to report issues related to wages or working conditions.
  • Online complaint registration system: An online mechanism for contract workers to register complaints directly with UC, through http://www.universityofcalifornia.edu/hotline/.
  • Annual and periodic audits: All UC contractors will be subject to an annual audit, paid for by the contractor, to ensure they and their subcontractors are complying with UC’s minimum wage plan, as well as all federal, state, and UC workplace laws and policies. UC contractors will also be subject to periodic audits to ensure compliance with UC’s minimum wage rules and expectations for working conditions. The audits will be implemented as existing contracts come up for renewal and as new contracts are established.

I work for a UC service contractor, and I believe that contractor is violating applicable wage or workplace requirements. What can I do?

You can call the UC worker hotline at 855-WAGES-UC. You can also submit your concerns online, through http://www.universityofcalifornia.edu/hotline/.

Where can I get more information about UC’s workforce?

Detailed information about UC’s workforce, including demographic and employee pay data, is available here.