University of Kentucky to increase minimum wage, expand parental leave benefits

The University of Kentucky will improve employee benefits and pay, including a sharp increase in how much minimum wage workers earn, President Eli Capilouto announced Thursday.

For the second time in about five years, UK will substantially raise its starting wages. Minimum wages for regular employees at the Lexington university will increase from $10.40 an hour to $12.50 in July. In 2015, UK moved from the federal minimum wage of $7.25 to $10 an hour.

“We have a wonderful team of employees that makes possible an incredible dream,” Capilouto said. “And we want to be competitive and lead the market to attract the very best people.”

The starting wage increase will affect about 1,700 employees, including 920 in health care, the university said. Employees who currently make between $12.50 and $14.50 an hour will also see pay increases. The amounts weren’t immediately disclosed.

The university also announced an increase in the amount of paid parental leave UK staff workers will be allowed to use for childbirth, adoption or foster care starting in January. Currently, employees can use six or eight weeks of sick time, but they will be allowed to use up to 12 weeks of accumulated sick time for leave.

With the change, UK hopes parents will no longer have to use vacation time for parental leaves.

UK has about 12,000 staff members and 2,000 employees, making it one of the largest employers in the state, according to the university’s website.

Another policy change gives UK employees two paid days per year for personal well-being beginning in January. Currently, employees can only use their sick days for their illnesses or injuries or to care for a family member with an illness or injury.

Employees accrue one sick day per month, and they start with two weeks of vacation per year.

“We have recognized from listening to our employees the realities they face in raising children,” Capilouto said. “It’s important to address opportunities in our benefit package that will strengthen our families, both in times of celebration and at times when you need to care for one another.”

Also beginning in July, all new eligible employees would participate in the university’s matching retirement savings plan in a proposal that needs UK Board of Trustees’ approval. Employees would contribute 5 percent of their salaries and UK would match with 10 percent.

Currently, employees under 30 are not required to take part in the matching retirement savings plan, but the university hopes the package will help them better save for the future.

“Too many individuals, at a time when they should be looking forward to retirement, don’t have that option,” Capilouto said. “One of the most powerful things you can witness in this country is compounding interest. This, we hope, pays benefits to our employees and their families, 20, 30 and 40 years from now.”

This story was originally published December 19, 2019 at 11:28 AM.