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UPS Compensation Structure and Tools

Effective Date: July 1, 2015
Last Updated: Nov. 27, 2015
Next Review: July 1, 2016

University Staff Policies and Procedures

SUBJECT: Compensation Structure and Tools

Original Issuance Date: July 1, 2015
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  1. POLICY PURPOSE

    The purpose of this document is to present policies for determining starting pay, the hourly rate upon movement to a new position or job, promotional pay, and guidelines for setting the rate for temporary and project appointments. Policies for temporary base adjustments, salary adjustments during interim appointments, salary adjustments within a title, overtime, compensatory time, and other pay components specifically created for University Staff are also provided.

  2. POLICY BACKGROUND

    In order to fulfill its mission, UW Parkside shall maintain a comprehensive compensation program directed toward attracting, retaining and rewarding a qualified and diverse workforce. Employee compensation shall be externally competitive, internally equitable, and shall reward contribution, recognize quality performance, and encourage growth and development.

    Prior to July 1, 2015, the University of Wisconsin System Unclassified Personnel Guideline (UPG) # 4: Unclassified Compensation presented the laws, rules, policies and practices pertaining to salary setting and salary adjustments for limited appointees, faculty and academic staff members, while the State of Wisconsin Compensation Plan contained the provisions governing salary transactions for university classified employees.

    Effective July 1, 2015, the compensation policies and guidelines outlined in this policy are for University Staff employees.  Please see UPS Operational Policy TC 4: Board of Regents Pay Plan Guidelines for pay plan details.

  3. POLICY DEFINITIONS
    • Institutional Base funds: Institutional funds that are part of an institution's budget; not part of Board of Regents pay plan funds.
    • Compensatory time: Time off the job which is earned and accrued by a nonexempt employee in lieu of immediate cash payment for overtime in accordance with FLSA.   
    • Premium rate: The regular hourly rate plus .5 times the regular rate paid the FLSA nonexempt employee.
    • Regular rate: The average hourly rate actually paid the non-exempt employee as straight time pay for all hours worked in the workweek or work period, including all remuneration for employment paid to, or on behalf of, the employee, except any payments specifically excluded from the calculation of the regular rate under the FLSA and related federal regulations.
    • Work hours: Work time as directed by the appointing authority during which an employee must be on duty and/or at a prescribed place of work.
  4. IMPORTANT CONSIDERATIONS
    • A compensation analysis with salary and seniority data for all UW-Parkside employees in the requested title can be used to help satisfy a written justification requirement.
    • All pay rate assignments and changes must be approved by the appropriate hiring authority before submission to the Human Resources office.
    • Salary adjustments for current employees (e.g., title change) will be effective on the first day of the pay period following receipt of the completed documents in the Human Resources Office.
    • See UW System Operational Policy TC 3 for additional information on compensation for University Staff employees.
  5. POLICY
    1. Starting Pay     
      1. The base pay should be set using the applicable pay range associated with the position's title.
      2. In the event that the requested base pay rate is above the midpoint of the applicable pay range, a written justification must accompany the personnel change form being sent to the hiring authority for approval.
    2. Salary Rate upon Movement to a New Position/Job (Occurs via Recruitment)
      1. The base pay should be set using the applicable pay range associated with the position's title.
      2. A written justification must accompany the personnel change form being sent to the hiring authority for approval if the requested pay rate is above the minimum of the new range and the rate requested for the new position is:
        1. greater than a 10% change, or
        2. above the midpoint of the range.
    3. Staff Promotional Pay (Occurs via Title Change)
      1. The base pay may be set at any rate that is not less than 5% above the minimum of the applicable pay range, subject to the maximum of the pay range.
      2. In the event that the requested base pay increase exceeds 10%, a written justification must accompany the personnel change form being sent to the hiring authority for approval.
    4. Salary Rate for Temporary and Project Employees
      1. University staff temporary employees must be paid at least the state or federal minimum wage, whichever is greater, unless a lower wage is authorized pursuant to Section 14 of the Fair Labor Standards Act and Wis. Stat. § 104.07.
      2. The base rate of a university staff temporary employee may not exceed the established pay range maximum for the title assigned.
      3. Pay determination for university staff project employees shall be subject to the starting pay requirements provided in section 5A of this document.
      4. In the event that the requested pay rate is above the midpoint of the applicable pay range, a written justification must accompany the personnel change form being sent to the hiring authority for approval.
      5. See the UW-Parkside University Staff Temporary and Project Appointment Policy for additional information on temporary appointments.

    5. Temporary Base Salary Adjustments
      1. Temporary base salary adjustments may be utilized in cases where an employee assumes temporary responsibilities. The level of the base salary adjustment should be appropriate for the new assignment.  Temporary base salary adjustments are not overload payments.
      2. Requests for temporary base salary adjustments being sent to the hiring authority for approval must include a thorough explanation for the request, including the expected duration of the adjustment.
    6. Salary Adjustments for Interim Appointments
      1. When a university staff employee is asked to serve in an acting/interim appointment, a compensation analysis/pay equity study shall be done to ensure that, to the extent possible, the salary offered for an acting assignment does not create inequities with comparable positions at UW-Parkside (or other institutions in the UW System, if applicable).
      2. When a permanent appointment is made, the acting or interim appointee can expect to be returned to his/her former position at a salary consistent with the salary the person had before assuming the acting appointment, plus any increases that the person would have received.
    7. Non-Merit Base Adjustments within a Title
      1. Requests for a non-merit adjustment within a title can be made for the following reasons:
        1. Adjustment for Change in Duties: A salary adjustment made if there is a substantive change in the duties and responsibilities of a filled position that does not result in a title change.
        2. Adjustment for Retention: A salary adjustment used when the employing department is aware that an employee is actively seeking other employment and the resultant loss of the employee's knowledge and experience would be a detriment to the department, division, or campus.
        3. Counter Offer Adjustment: A salary increase necessary to retain a person who has received an outside offer of employment (with comparable duties and responsibilities) at a rate higher than his/her existing rate.
        4. Equity Adjustment: A salary adjustment made when an employee's salary has been determined to be lower than that of other UW-Parkside employees performing the same or similar duties at the same level of proficiency and who have comparable years of experience. This action may also be used if there is significant pay compression between an employee and his/her immediate subordinates; or established labor market data identifies a need to award a market adjustment in order to achieve equity with external public/private employers.
      2. Requirements for Non-Merit Adjustments:
        1. A written justification must be attached to the personnel change form being set to the hiring authority for approval.
        2. All non-merit base adjustments are subject to the minimum and maximum of the applicable pay range.
    8. Merit Adjustments
      1. Merit adjustments allow for recognition of an employee's superior or meritorious service. Relevant factors that should be considered include:   
        1. Length or frequency of superior performance
        2. Regularity with which outstanding contributions are demonstrated
        3. Overall significance or importance of the employee's work to the department, division, or campus
      2. Required Documentation for Merit Adjustments:   
        1. A written justification must be attached to the personnel form being sent to the hiring authority for approval.
        2. The written justification must include a thorough explanation for the base adjustment that specifically addresses at least one of the relevant merit factors listed above.
    9. Overtime for University Staff Who are Not Exempt From the Overtime Provisions of the Fair Labor Standards Act (FLSA)
      1. Except for law enforcement officers (see below),  FLSA nonexempt employees must be paid at a premium rate or receive compensatory time credits at a rate of 1.5 hours per hour worked, for each hour worked in excess of 40 hours in a workweek. Hours worked do not include hours of paid leave.
      2. Law enforcement officers must be paid at a premium rate or receive compensatory time credits at a rate of 1.5 hours per hour worked, for each hour worked in excess of 80 hours in a 2-week pay period.
      3. All overtime work must be approved by the designated supervisor or designee in advance of the hours being worked.
      4. If overtime is earned on a legal holiday, payment of overtime is at the premium rate. Floating legal holiday is granted to employees who are required to work on the legal holiday or if the legal holiday is on an employee's regularly scheduled day off, per UPS Operational Policy BN 2.
    10. Compensatory Time in Lieu of Overtime Payment
      1. FLSA provides public employers the option of providing nonexempt employees with compensatory time (comp time) off in lieu of cash for overtime so long as the employee has received notice of the comp time option.
      2. FLSA nonexempt employees are permitted to accumulate up to 80 hours of compensatory time. Comp time accrues at one and one half times for each hour worked over 40 in a week. Any overtime hours accumulated by FLSA nonexempt employees that exceed the 80-hour limit shall be paid in cash at the premium rate.
      3. Any comp time earned in a calendar year which is unused by April 30th of the following calendar year will be converted to cash payment and included in the earnings for the pay period that includes May 1.
      4. The supervisor or designee has the discretion to approve scheduled use of compensatory time earned in lieu of cash payment for overtime hours.
      5. For more information on compensatory time, please see the UW System Compensatory Time Policy.
    11. Overload Payments

      The salary received by full-time FLSA exempt university staff is considered to be full compensation for all work during the period of appointment.  University staff exempt from the provisions of the Fair Labor Standards Act are expected to expend the total effort necessary to complete their assignments without additional compensation.  The Chancellor or designee may approve increased compensation in the form of an overload payment in cases where a temporary assignment is undertaken at another UW System institution, or an individual is asked to assume additional short-term responsibilities.

  6. JOINT RESPONSIBILITIES

    The Human Resources Department and the University Staff Committee will share joint responsibility for evaluating the effectiveness of this policy by conducting yearly reviews of the Compensation Structure and Tools policy.  The Human Resource Department may provide procedural assistance for employees if needed.

  7. RELATED DOCUMENTS
    • UPS Operational Policy TC 3 Compensation
    • UW-Parkside University Staff Temporary and Project Appointment Guidelines
    • UPS Compensatory Time Policy
    • UPS Operational Policy BN1, Vacation
    • UPS Operational Policy BN 2, Personal Holiday & Legal Holiday
    • UPS Operational Policy GEN 21Crafts Workers
  8. POLICY HISTORY

    Draft for Review April 2015
    Effective July 1, 2015

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