Policies and Initiatives:  Living Wage and Benefit Guidelines

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Explanation of Policy

Since September 1, 2007, Stanford University has recognized the importance of paying a living wage to all service workers at Stanford, whether they are directly employed by Stanford or by suppliers / contractors. This applies to services performed on the core campus premises (including the Stanford Linear Accelerator Center) that Stanford might otherwise perform with directly hired hourly paid employees. This applies to supplier / contractor employees not represented under a collective bargaining relationship.

Stanford further recognizes that a living wage and other benefits enhance the quality of an individual's work experience. Stanford already pays a living wage to its employees and now adopts this living wage and benefit policy to guide its procurement of such services from suppliers / contractors. Through these guidelines, Stanford seeks to establish minimum pay, access to healthcare benefits and compensated time off for service workers. These guidelines are not intended to prevent suppliers / contractors from providing wages and benefits in excess of the minimums created here.

The wage guidelines are two tiered, with an identified minimum living wage established if the employer provides a health plan, and a higher minimum living wage required if no health benefits are provided. The living wage is set at a minimum as noted below:

Minimum Living Wage Rate
Effective Dates With Health Benefits Without Health Benefits
10/01/2019 – $15.88 $18.05
10/01/2018 – 09/30/2019 $15.31 $17.40
10/01/2017 – 09/30/2018 $14.55 $16.54
10/01/2016 – 09/30/2017 $14.06 $15.97
10/01/2015 – 09/30/2016 $13.65 $15.50
10/01/2014 – 09/30/2015 $13.25 $15.05
10/01/2013 – 09/30/2014 $12.85 $14.60
10/01/2012 – 09/30/2013 $12.40 $14.10
09/01/2011 – 09/30/2012 $11.98 $13.63
09/01/2010 – 08/31/2011 $11.88 $13.49
09/01/2009 – 08/31/2010 $11.70 $13.37
09/01/2007 – 08/31/2009 $11.15 $12.59

The guidelines establish at least 10 compensated days off annually for full time employees who have worked for the supplier / contractor for at least one year. This includes holidays and other paid time off such as vacations, sick and personal days.

In addition, suppliers / contractors shall comply with state and federal law in providing employees with a safe working environment that is free from unlawful discrimination and harassment.

When Stanford changes suppliers / contractors, it will encourage the new supplier / contractor to fill any existing vacancies by interviewing and considering for hire qualified employees of the previous supplier / contractor.

Stanford further recognizes that federal law provides that "employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities..." Stanford will continue to honor these rights.

The wage and benefit levels set under these guidelines will be reviewed on an annual basis and adjusted as appropriate based on recommendations from University Human Resources. The recommendations will be submitted to the President for his final decision.

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These guidelines will apply to suppliers / contractors whose employees provide any services, including but not limited to, maintenance, grounds keeping, housing and food services, and general administrative jobs directly to Stanford University* when all of the following conditions apply:

  • The workers are employees of suppliers / contractors with agreements with Stanford University.
  • Such workers are regular or temporary employees of the supplier / contractor.
  • Such workers are not represented under any existing collective bargaining relationship.
  • The aggregate value of the contract(s) exceeds $100,000 per year. Note: This means that single suppliers / contractors with several small contracts that are individually smaller than $100,000 but when totaled are at or above $100,000 will be covered by this policy.

*  Excludes tenants or other entities doing business on Stanford owned land. This includes Stanford Hospital and Clinics and Lucile Packard Children's Hospital.

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