Compensation Administration
This policy applies to: All University staff
Table of Contents
I. Policy
The University’s Compensation Administration Program is committed to regulatory compliance. As an employer we are obligated to comply with a variety of federal, state, and local labor laws. The Fair Labor Standards Act (FLSA) is a federal law that sets the criteria to determine which employees are entitled to overtime pay based on duties performed (including, level of responsibility and typical level of, decision making authority possessed) and method/level of compensation. Generally, employees must satisfy both the duties test and applicable salary test to be considered exempt from overtime pay under the FLSA.
Unless an employee is exempt from the overtime provisions of the FLSA and comparable state laws, they are covered by the provisions outlined in the law(s). Generally, non-exempt employees must be paid on an hourly basis (at least the minimum wage) for all hours worked and an accurate record of all daily and weekly hours worked must be kept. In addition, non-exempt employees must receive pay at one-and-a-half times their regular hourly rate for any hours worked in excess of 40 in a work week.
It is also the University’s intent to pay each employee fair compensation for all work performed. This goal is pursued through a formal compensation administration program. The components of this program include: (1) describing the duties and responsibilities of a position and assigning it to the appropriate job classification and pay range, (2) establishing pay ranges for each pay range that consider prevailing wages/salaries in the University’s labor markets, and (3) differentially rewarding an individual’s education, experience, and success in meeting pre-determined performance criteria.
II. Definitions
Exempt employee – an employee who, because of their duties and method/level of compensation is exempt from the applicable statutory overtime requirements. Exempt employees are expected to work whatever hours are necessary to accomplish the goals and deliverables of their position. Thus, exempt employees have more flexibility in their schedules to come and go as necessary to accomplish work than non-exempt (hourly-paid) employees.
- At the University, positions within the following Career Streams generally meet the qualifications for exemption: Professional, Leadership, Senior Leadership, and Clinical (certain C4 level jobs and C5 or above). Senior Leaders, Deans, Directors, and Vice Presidents also generally meet the qualifications for exemption.
Non-exempt employee – an employee who, because of their duties and method/level of compensation is subject to the applicable statutory overtime requirements. Non-exempt employees are required to record all hours and fractional hours worked. Non-exempt employees must be compensated for all hours worked including overtime at one-and-a-half times their regular hourly rate for any hours worked in excess of 40 in a work week.
- At the University, the following Career Streams generally do not meet the qualifications and therefore are considered non-exempt: Associate and Clinical (level C1-C4), along with staff in the Professional, Leadership, Senior Leadership, and Clinical (level C5 or above) Career Streams who do not meet the applicable duties or salary tests.
II. Guidelines
A. Components of the Program
The University’s compensation program provides:
- A pay range which is commensurate with a position’s difficulty, complexity, and value to the University.
- Equitable pay within the University for equal work which reflects quality of work performance regardless of age, race, creed, color, national origin, sex, sexual orientation, gender identity or expression, military status, disability, genetic predisposition or carrier status, family or marital status, status as a victim of domestic violence, or other protected class.
- Position descriptions of all classifications identified by title and code, and grouped into pay grades according to their relative difficulty, complexity, and value to the University.
B. Job Evaluation
Job evaluation is the process of determining a job’s value as compared to other positions, by systematically assessing job content. It assesses the similarities and relative differences of positions. Positions of substantially equal level are grouped into the same pay range.
C. Pay Ranges
Pay ranges provide a minimum and maximum monetary value for each job. The pay schedules are designed to recognize and provide for the following factors: different levels of skill, effort, and responsibility (as determined by job evaluation); the competitive labor markets; job performance; and availability of funding.
D. Pay Administration Guidelines
Specific program elements and administrative procedures are contained in the Pay Administration Guidelines. The Guidelines are reviewed annually with appropriate changes made to the content and to pay schedules. This document is available on the Human Resources website.
E. General Information
Employees seeking information related to the Wage and Salary Guidelines and/or specific pay range information should contact their immediate supervisor.
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