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$15 per hour minimum wage: Ohio State to make further investments in its employees

President Michael V. Drake announces compensation adjustment to take effect next year

The Ohio State University President Michael V. Drake announced today that the minimum wage for qualifying staff members will be $15 per hour.

The initiative will be implemented across the university and Wexner Medical Center with Ohio State’s annual merit compensation process in 2020.

Ohio State estimates that 3,800 staff employees will see their hourly pay rate raised to $15. An additional 1,000 employees already earning $15 per hour will move to a rate of $16 per hour, bringing the total number of affected staff to more than 4,800.

“This effort is in keeping with a competitive marketplace and — as the state’s fourth-largest employer — the university’s commitment to invest in individuals and families throughout our Buckeye community,” Drake said. “Our greatest strength is our people.”

Over the last several years, the university has brought greater rigor to its compensation and benefits programs, which are considered highly competitive, Drake said.

Additionally, a recent analysis of the university’s economic impact showed that Ohio State supports more than 123,000 jobs across Ohio. One in every 57 jobs in the state is directly or indirectly supported or sustained by the university, the analysis found.

“We are fortunate to help drive and be part of an increasingly competitive job market,” said Executive Vice President and Provost Bruce A. McPheron. “It is critical that Ohio State attract and retain the most qualified employees in all disciplines — and remain an employer of choice in our city, state, region and beyond.”

The annual cost to the university for raising the minimum wage is expected to be $19 million, inclusive of pay and benefits. An ongoing administrative efficiencies program in units across the university, launched in 2015, will fund the initiative. No new investment of dollars will be made.

Additional details of the new hourly minimum wage at Ohio State:

  • All regular staff and term staff positions are included.
  • Temporary jobs are not included with the exception of patient care associates and internal resource pool positions at the medical center.
  • Students who work in staff positions are included. Positions classified as student jobs are not included. The university continues to examine wages for these student positions and plans to establish new minimum wage tiers as appropriate.
  • Ohio State will engage union leadership to explore extending this initiative to employees covered by collective bargaining agreements.

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