University faculty allege systemic underpayment due to delayed implementation of salary increases.
University of Michigan Faculty File Lawsuit Alleging Pay Underpayment
Faculty members of the University of Michigan have initiated a class-action lawsuit against the university’s Board of Regents, alleging long-term underpayment due to delayed salary adjustments. The complaint, led by sociology professor Dr. Fatma Müge Göçek, claims that faculty appointed on a University Year basis were not compensated for raises during the first two months of the fiscal year.
The lawsuit, filed in Michigan’s Court of Claims, seeks monetary, declaratory, and injunctive relief, arguing that the university breached contractual agreements and was unjustly enriched at faculty members’ expense.
Allegations Highlight Disparities in Faculty Compensation
The suit contends that while faculty salaries are spread over a 12-month period starting July 1, salary increases are not applied until September 1. This delay systematically denies faculty the benefits of pay raises for two months each fiscal year. The discrepancy allegedly affects faculty across the university’s Ann Arbor, Dearborn, and Flint campuses.
For instance, Dr. Göçek, who has been with the university since 1988, experienced this delay during multiple years, resulting in underpayment totaling $3,643.67 between 2018 and 2024. The issue persisted despite clear policies in the university’s Faculty Handbook requiring salary increases to take effect at the beginning of the fiscal year.
University Responds With Policy Change but No Retroactive Pay
In 2024, the university announced plans to address the issue, stating that salary increases will align with the fiscal year starting in July 2025. However, the university has refused to compensate faculty for prior underpayments, prompting faculty members to seek legal recourse.
The lawsuit accuses the university of breaching its contracts, citing explicit policies mandating fiscal-year implementation of raises. Faculty members also allege unjust enrichment, asserting that the university used the withheld funds for operational expenses.
Broader Implications for Higher Education Compensation
The case underscores ongoing tensions in academia over equitable compensation and transparency. Faculty compensation has been a flashpoint in labor disputes nationwide, particularly as universities navigate budget constraints and shifting financial priorities.
The University of Michigan’s refusal to provide retroactive pay has drawn criticism, with plaintiffs arguing that the institution’s response fails to address the harm caused to faculty who relied on timely salary increases.
Relief Sought by the Plaintiffs
The lawsuit demands:
- Certification of the case as a class action.
- Financial compensation exceeding $25,000 for affected faculty members.
- Injunctive relief to ensure compliance with fiscal-year policies.
- Reimbursement of attorney fees and associated legal costs.
Related Context and Developments
This case emerges as universities nationwide face scrutiny over pay practices, with some faculty unions pushing for greater oversight and enforcement of contractual obligations.
The University of Michigan, a premier public research institution, has yet to issue a public statement regarding the lawsuit. Observers say the outcome could set a precedent for how academic institutions address pay-related grievances.
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