In an attempt to get a handle on the actual economic impact of a Living Wage on the University, we embarked on a series of communications, by telephone and electronic mail, with the University Relations office. We worked with Alexandra Rebhorn, Special Projects Manager.

The short answer (based on these numbers and some assumptions) is that there are fewer than 600 people who would be affected by an increase of their wage to $10.72. The impact on the academic side of the University, wage and benefits, would be on the order of $900,000 a year. Approximately 350 people now earning less than $10.72 per hour would be raised to that figure (120 or so are at $9.37, the rest earning an intermediate amount). The cost of their benefits would increase as well.

At the Medical Center the impact would be perhaps half of that, about $450,000. The increased cost amounts to less than one-tenth of one percent of the University's operating budget.

Here then are the (lightly edited) transcripts of two exchanges.

Dave Sagarin (May 5, 2006)

How many people we are talking about, who presently earn the $9.37 minimum?

There are 119 people currently earning $9.37 as an hourly wage or its equivalent in the academic division.

Also, how many people are employed by the University, and how many are employed by contractors?

The total number of classified employees in the academic division is 4730 (4587 full time and 143 part time). As for contracted employers, we do not have access to the number of people employed by contractors since those businesses are not subject to FOIA.

Is there a difference between people hired on with wages part time vs. salary part time? Do people hired on with wages part time get benefits?

Part time wage employees do not receive benefits. In order to receive the full package of benefits as a part time salaried employee an individual must work at least 32 hours a week, though there are some benefits for which individuals at less than 32 hours might be eligible.

Is the $3.29 an hour in benefits based on the $9.37 per hour wage, and more for those making more?

The $3.29 you cite is the fringe benefit rate for an employee earning $9.37 an hour. The fringe benefit rate is calculated at 35.1 percent of an individual’s salary.

The breakdown of what comprises the current classified fringe benefit rate is:

• Health Insurance 15.42%
• Retirement 9.22%
• Social Security 7.63%
• Other Insurance 2.83%

“Other Insurance” includes the following: Workers Compensation, Unemployment, Virginia Short-Term Disability, and VRS Life Insurance. (electronic mail, April 20, 2006)

Followup questions, a few days later

You specify 119 people in the Academic Division presently earning $9.37 per hour. Are these 119 people all full-time employees? Do they all get benefits? Are there any full time employees in the Academic Division earning less than $9.37 per hour? Are there any part-time employees in the Academic Division earning less than $9.37 per hour?

Please note that all employment statistics provided [below] are current as of Friday, April 28, 2006. These numbers are a snapshot on any given day, changing as employees leave and are hired.

There are 122 salaried employees in the academic division (Agency 207) earning $9.37 per hour. Of the 122 salaried employees, 120 are full-time and 2 are part-time. Full-time and part-time salaried employees are benefit-eligible.

The minimum hiring rate for employees working within the academic division is $9.37 per hour. We do not have employees within the academic division earning less than $9.37 per hour.

Of the 143 (more or less) part-time employees in the Academic Division, how many are wage employees and how many are salaried? Of the part-time salaried employees, how many receive full benefits, and how many no benefits or less-than-full benefits?

We have a total of 143 part-time classified salaried employees in the Academic Division, working between 20-39 hours per week. Wage employees are a separate classification. Part-time salaried employees who work at least 20 hours a week are eligible for health benefits; retirement; tax-deferred savings programs; intramural recreation benefits; flexible reimbursement accounts, and educational benefits.

According to Carol Wood’s response to an FOIA request from Jan Cornell of SUUVA in February of this year, there were 342 full-time salaried employees in the Academic Division being paid less than the proposed Living Wage of $10.72 per hour. Am I correct in assuming that there are approximately 223 full time salaried employees (342 minus 119) in the Academic Division earning more than $9.37 but less than $10.72?

This is not an accurate statement. As of 4/28/06, there are 332 classified salaried employees in the academic division earning between $9.37 and $10.72. Of the 332 employees, 328 are full-time salaried and 4 are part-time salaried.

How many University employees are there at the Medical Center, full and part time? How many of them are paid $9.37 per hour? Are those making $9.37 all full-time? Do they all get benefits? Are there any full time employees in the Medical Center earning less than $9.37 per hour? Are there any part-time employees in the Medical Center earning less than $9.37 per hour?

There are 5212 Medical Center employees, of which 4074 are full time. 89 Medical Center employees are paid $9.37 per hour, and 81 of them are full time employees. All full time Medical Center employees receive benefits; see below regarding part time employee benefits. There are no Medical Center employees, full time or part time, earning less than $9.37 per hour.

Is the policy are the same at the Medical Center as in the Academic Division, that part-time wage employees may not receive benefits?

Most of the Medical Center employees who work part time are employees who chose to work a flexible schedule (flex employees), which means they are regularly scheduled to work at least 40 hours per pay period and commit to working additional hours as needed to meet staffing needs. Flex employees are eligible for the Flexible Benefits Plan, PTO and retirement. Regular part time Medical Center employees and other part time Medical Center employees are not eligible for the Flexible Benefits Plan or retirement.

Finally, are there any other places where employees of the University may be found, in addition to the Academic Division and the Medical Center?

There are no Agency 207 employees at the University other than the ones described above. (electronic mail, May 3, 2006)