The minimum wage increase from $5.15 to $6.85 an hour is now in effect, and student workers on campus, along with the rest of Ohio, will quickly notice its impact on their first paycheck of the year.
Voters went to the polls Nov. 7 and passed Issue 2, allowing for the increase, which began Jan. 1. Also starting this year, every Sept. 13 the minimum wage will rise by the rate of inflation for the previous 12 months. The new wage will be activated the following Jan. 1.
Many student employers at UD are seeing the changes the minimum wage increase will cause in their budgets, but at this point most are not planning on cutting back workers.
According to Paula Smith, director of UD Dining Services, the number of students working for her is necessary to run the operation.
'In Dining Services, the management staff has an obligation to manage our resources efficiently,' Smith said. 'Positions and employment opportunities are not being eliminated because the minimum wage increased Jan. 1.'
To determine what the increase in minimum wage would cost Dining Services, a financial analysis was conducted. Dining Services then considered increasing the prices in the cafeterias and catering services beginning Jan. 1. According to Smith, it was best to keep the prices the same.
'The only program that is being reviewed and may be adjusted as a result of the minimum wage increase is the Secret Shopper program, which is very small in comparison to Dining Services student employee payroll,' she said.
Amy Lopez, director of Kennedy Union and Conference Services, has a similar take on the increase. Students under her management include those working for the information desk and for operations, among others.
'We simply can't have less students,' Lopez said. 'I am all for the increase (in minimum wage).'
This extra cost will have a $27,000 impact on the budget for KU and Conference Services. In some instances student employees will make more than $6.85 based on their position and seniority. Between 80 and 100 students work for KU every semester.
'My hope is that all of campus will continue to employ workers,' Lopez said. 'They are an incredible impact on what we do.'
Adam Buckman, senior operations management major and CEO of Flyer Enterprises, anticipates the number of jobs available will not be affected in the beginning.
'We hire the minimal number of people as it is,' he said. 'This is around 172 student employees. Next year the budget may change, but we will not know for a while how big of an impact the minimum wage increase will make.'
Smith, Lopez and Buckman all suggested students will only benefit from the increase in wages, as most were making less than $6.85 before Jan. 1. Students have reactions both ways.
'It's great,' said Lisa Klenk, freshman middle childhood education major. 'I work in KU for Dining Services, and at first I wasn't even aware of the increase.'
Walter Kolis, senior sport management major and student manager at the RecPlex, has opposite feelings.
'I personally voted against the increase,' he said. 'I was already making close to $6.85 before.'
Kolis works 12 to 15 hours a week and this will remain the same, but the facilities department of the RecPlex had to cut other shifts in order to fit the budget.
Although many employers hope to maintain their workers, the exact impact will not be known until after the first pay period, Jan. 25. According to Don Vince, director of student employment, no exact conclusions can be made until then.