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Committee reviews employee pay changes; Town Manager proposes 3% merit raises and wage floor adjustments

Budget/Finance/Audit Committee, Town of East Stone Gap · May 22, 2026
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Summary

Stephen Lawson proposed a 3% merit increase for full‑time staff, $16/hour starting wage for new full‑time hires, and raising part‑time/seasonal pay to $14/hour effective July 1; group health insurance costs are projected to rise about 7%.

Town Manager Stephen Lawson told the committee the proposed personnel changes include a 3% merit increase for all full‑time employees and adjustments to existing wages to address pay compression. Lawson said all newly hired full‑time employees would begin at $16.00/hour and that existing wages would be adjusted accordingly.

Clerk/Treasurer Amanda Hawkins said the draft budget raises part‑time and seasonal wages to $14.00/hour beginning July 1, citing a legislated minimum‑wage change to $13.75 effective Jan. 1, 2027. Lawson also said the town’s group health insurance premium is expected to increase by about 7% for the coming year; the budget passes that cost along without changing the split in contribution between employees and the Town.

The committee did not modify the proposed merit percentage during the meeting; members discussed wages and benefits in the context of overall budget balance and utility rate proposals.