University Classification and Compensation UPPS No. 04.04.11
Issue No. 13
Review: June 1 E3Y
01. POLICY STATEMENTS
01.01 This UPPS sets forth classification and compensation policies and procedures for all university employees, including those paid from grant or contract funds. The vice president for Finance and Support Services (VPFSS) must approve any exceptions to this policy.
01.02 The compensation and classification policies and procedures of this UPPS strive to provide flexibility to department heads. However, all policy and procedure decisions are subject to normal administrative review and approval, and must comply with applicable federal, state, and university requirements.
least once every fiscal year, the chief diversity officer and director,
02.01 There are five categories of employees at the university: faculty, administrative officers/exempt, unclassified/exempt, classified/non-exempt and student.
a. Faculty – those employees with a specified academic rank holding a teaching appointment for a fixed term as determined by the president and approved by the Board of Regents (Chapter V, Section 4). Faculty positions meet the federal Fair Labor Standards Act (FLSA) definition, conditions, and requirements of a "professional." Therefore, faculty positions are exempt from overtime.
b. Administrative Officers/Exempt – employees who meet the FLSA definition, conditions, and requirements of either an executive, administrative, or professional employee and who the university has designated as administrative officers as in the guidelines issued by the Board of Regents (Chapter V, Section 1). These employees serve without fixed terms. Administrative employees are eligible to participate in the Optional Retirement Program (ORP). Administrative officers at Texas State are the president, vice presidents, director of Athletics, and academic deans. Administrative positions are exempt from overtime.
c. Unclassified/Exempt staff – those employees who meet the FLSA definition, conditions, and requirements of either an executive, administrative, or professional employee, and who are appointed without fixed terms and serve at the pleasure of the president. Certain unclassified/exempt employees are eligible to participate in the Optional Retirement Program (ORP). Unclassified/Exempt employees manage or participate in the management of a department or unit or perform a function requiring specialized expertise or professional training. Unclassified positions are exempt from overtime and do not have a pay range maximum.
d. Classified/Non-exempt staff – those covered by FLSA overtime provisions and appointed without fixed terms and serve at the pleasure of the president. Classified positions have a pay range minimum and maximum.
e. Student employees – hold positions reserved only for university students. All student employees, except for selected graduate student employees, are non-exempt and are subject to FLSA overtime provisions. Additional information on student employees can be found in UPPS No. 07.07.03, Student Employment Procedures; UPPS No. 04.04.03, Staff Employment; UPPS No. 07.07.06 Salaried Graduate Assistant Employment Procedures; and the University Pay Plan.
f. Reclassification – a reclassification occurs following a job audit performed by Human Resources that confirms a significant change in job duties and responsibilities necessitating a new job title.
g. Pay grade – a pay grade represents the value of a job as reflected in the corresponding pay range or Pay Plan minimum. Either market data or a relative value analysis of the position determines the pay grade of each title.
h. Guideline Oriented Job Analysis (GOJA) – the booklet used to conduct job analyses and assign the appropriate corresponding pay grade, job title and FLSA status (Exempt/Non-exempt).
02.02 There are four types of employee appointments:
a. Regular employees – employed for at least twenty hours per week for an indefinite period, or for a definite period of 4.5 months or more excluding students employed in positions that require student status as an employment condition. Regular employees are benefits eligible.
b. Non-regular employees – those non-student employees who do not meet the definition of a regular employee. Non-student non-regular employees are not benefits eligible.
c. Student employees – as defined in Section 02.01 e., except for selected graduate student employees as provided in UPPS No. 07.07.06, Salaried Graduate Assistant Employment Procedures, are not benefits eligible.
d. Split appointees – those appointed to both faculty and staff titles. Employees must have a staff title classified as FLSA exempt. The percentage of time (i. e., FTE) assigned to each appointment must indicate the workload in each appointment. Benefits eligibility for split appointment employees depends on whether they meet regular status requirements.
03. PROCEDURES FOR CLASSIFYING AND RECLASSIFYING STAFF POSITIONS
The Human Resources Web site at: http://www.hr.txstate.edu/compensation.html lists the steps for classifying a new position or reclassifying an existing position.
a. The duties and level of the position determine the assignment of a classification to a position. The university will not classify a position to fit an employee or group of employees. Instead, the classification will reflect the actual duties performed.
b. When posting a position assigned a grant title, the university may use the appropriate generic grant title. The department head must submit a GOJA to Human Resources within thirty days of filling the position. Human Resources will audit the position upon receipt of the GOJA to determine the proper grant title and FLSA overtime status of the position. Human Resources may require adjustments in title and salary based on the audit results.
03.03 New Positions
Administrative channels must approve, and Human Resources must audit, new position requests to determine proper classification and pay grade. Department heads should forward to Human Resources, through proper administrative channels, a position requisition, GOJA, written justification for the recommended title and pay grade, and an organization chart reflecting the new position's relationship to the other positions in the department. Department heads must obtain administrative approval and fund availability prior to the Human Resources audit. Attached is a link to the job audit process: http://www.hr.txstate.edu/compensation.html.
Administrative channels must approve, and Human Resources must audit, reclassification requests. Reclassification requests require the department head to forward to Human Resources, through proper administrative channels, a position requisition, GOJA, written justification for the reclassification and for the recommended title and pay grade, and an organization chart reflecting the position's relationship to the other positions in the department. Department heads must obtain administrative approval and fund availability prior to the Human Resources audit.
When an audit results in a reclassified position, the following determines the employee’s salary:
a. Reclassification to a title in a higher pay grade – If the employee’s salary is below the Pay Plan minimum of the new title, the employee receives a reclassification increase to the new minimum. If the employee‘s salary is equal to or greater than the new minimum, no reclassification increase is required.
NOTE: Whenever an employee’s position is reclassified to a title with a higher Pay Plan minimum, the department head is encouraged to grant a salary adjustment to ensure that an employee receives a total increase of at least 15% over the employee’s salary before reclassification under this section, an employee in a classified/non-exempt position cannot receive a pay increase that would place their salary above the Pay Plan maximum for the job title.
NOTE: After notifying the appropriate department head, Human Resources will implement the reclassification results, which become effective no earlier than the first day of the month following the month in which Human Resources approves the audit. However, if the department head wishes to grant a pay increase in conjunction with the reclassification, beyond the Pay Plan minimum of the new title, he or she must forward a PCR through administrative channels.
NOTE: See University Longevity Program (ULP) in Section 04.04 below for information regarding ULP increases subsequent to reclassification to a title in a higher pay grade.
b. Reclassification to a title in the same pay grade – The employee’s new salary is at their current rate of pay. Management may grant an additional pay increase by separate PCR through administrative channels, if desired.
c. Reclassification to a title in a lower pay grade – The employee’s salary does not change unless the employee’s salary is above the maximum for the new grade. In such a case, the employee’s salary is reduced to the new maximum. This only affects classified positions. This section does not apply to unclassified positions which do not have a pay range maximum.
04. PROCEDURES FOR GENERAL COMPENSATION ADMINISTRATION
The Pay Plan establishes the titles and applicable pay grades for all faculty (except per course faculty), staff, and student employees.
The factors that dictate faculty compensation include discipline, rank, experience, and market conditions. The university initially pegs faculty salaries for new hires to discipline-specific national median salary points by rank using data obtained through the College and University Personnel Association (CUPA) Faculty Salary Study. During the position authorization process, these salaries are assigned to a position. Negotiation for hiring salaries begins at these points and then varies based on experience and market conditions.
Departments may only assign staff appointed on grant or contract funds one of the specified grant titles in the Pay Plan. Faculty appointed on grant or contract funds may retain their normal academic teaching title or assume one of the faculty exempt titles of grant director, faculty or program faculty, as appropriate.
Except in extraordinary situations approved by the president, a newly hired employee must wait a minimum of ninety days before receiving a pay adjustment. This section does not affect salary adjustments that result from a reclassification or promotion.
The President’s Cabinet or the vice president for Finance and Support Services must approve pay grades. Data from periodic salary surveys, available funding, and internal pay relationships are the basis for the grades.
The grades in the Pay Plan do not include emoluments such as meals, uniforms, or other similar forms of compensation.
Pay grades for staff titles increase by a percentage equal to any percentage-based state or university across the board or general increases affecting all regular staff employees.
faculty, staff, and graduate student employees
with 9-month appointments may choose to receive their 9-month salary in twelve
monthly payments. If salary spread is elected, it will remain in effect every
year thereafter until either: 1) the employee signs an authorization to change
back to a 9-month pay basis to begin the next fiscal year, or 2) the employee
becomes ineligible. Employees who wish to elect 12-month salary spread or
change back to a 9-month pay basis must complete a Salary Spread Election Form in Human Resources.
compensation is limited to cash or, when eligible, overtime or compensatory
time off. Employees may not receive compensation in the form of computers,
trips, or other assets.
a. Base Annual Salary – The university will pay each employee at an hourly or monthly rate consistent with the pay grade assigned to the employee’s position title in the Pay Plan.
The rate for exempt (unclassified) employees will be no lower than the minimum rate in the Pay Plan.
The rate for non-exempt (classified) employees will be no lower than the minimum rate and no higher than the maximum rate in the Pay Plan.
Salaried and hourly employees filling multiple positions may have multiple pay rates but may not fill salaried and hourly positions concurrently. An employee may not fill FLSA exempt and non-exempt positions concurrently.
The president will determine salaries for individuals appointed to administrative officer titles.
Administrative officers/exempt, unclassified/exempt, and classified/non-exempt appointments are subject to normal university promotion, transfer, and other applicable compensation and classification policies.
b. Reclassification Compensation – See Section 03.04.
Adjustment – An incumbent employee receives a salary increase when labor market
rates result in a new pay grade minimum that exceeds the employee’s salary. In
such a case, the incumbent receives a market adjustment to the new pay grade
d. Merit Pay – A discretionary salary increase awarded for meritorious performance. The president establishes the criteria for merit increases. Eligibility for a merit salary increase under this section requires university employment for the six months immediately preceding the increase’s effective date and at least six months must have elapsed since the employee’s last merit increase. However, the requirement that a six-month time period elapse between merit increases may not apply to a one-time merit payment if the president determines in writing that the one-time merit payment relates to the employee’s performance during a natural disaster or other extraordinary circumstance.
In addition, a score of at least a 301 on the most recent performance appraisal
is necessary to be considered for a merit increase. The administrative chain of
command determines which of the eligible employees receives a merit increase
and the amount.
NOTE: Unless approved by the president, classified/non-exempt employees at or above their job title’s maximum pay rate may not receive merit raises. These employees may, however, receive legislated across-the-board general pay increases.
e. Performance Increase – A performance increase is essentially a non-discretionary merit award provided to qualified staff employees as determined by the president or the state legislature. Qualifying standards for receipt of the increase are established by the president or the legislature as appropriate.
f. Promotion Compensation (Staff) – As distinguished from a merit increase, means a change to a position title in a higher pay grade.
NOTE: Whenever an employee is promoted, the department head is encouraged to ensure that the employee receives an increase of at least 15% over the employee’s salary before the promotion. However, the employee’s salary cannot exceed the Pay Plan maximum for the new position.
NOTE: Refer to Section 04.04, for information regarding the University Longevity Program increases subsequent to promotions.
1) Promotion to an Unposted Position or to a Position with No Posted Rate – The department head may place the employee’s salary at any rate in the new pay grade.
2) Promotion to a Posted Position – The department head may place the employee’s salary at any rate from the minimum posted rate up to and including the pay grade maximum rate.
NOTE: When an employee moves into a higher-level job in an acting or other non-permanent capacity, the move is considered a temporary assignment and not a promotion. Any additional pay for the temporary assignment processed under the provisions of Section 04.02 m., is at the divisional vice president’s discretion. Likewise, the determination of whether any such temporary pay increase is permanent or temporary is at the discretion of the divisional vice president within the provisions of this UPPS.
g. Promotion Compensation (faculty) – The provost determines salaries for promoted faculty members.
h. Transfer Compensation (staff) – A transfer means a change to another position with the same or lower pay grade minimum salary.
NOTE: A department may transfer an employee to
an equivalent position and/or title under the same account manager or within
the same account as necessary. However, a department may not, without the
employee's consent, transfer the employee to a lower position and title. Such
an action would represent a demotion as described in UPPS No. 04.04.40, Disciplining and Terminating Staff Employees.
Voluntary Transfer – An employee may request a transfer to an equivalent or lower position and/or title under the same account manager or within the same account. The PCR will show the granted transfer as a voluntary transfer, not a demotion.
1) Transfer to an Unposted Position – The employee’s salary is at their current rate of pay. Management may grant an additional pay increase through administrative channels, by separate PCR, if desired.
2) Posted Position with No Posted Rate – The department head may place the employee’s salary at any rate from the new pay grade minimum up to the pay grade maximum rate. Additionally, there is a required ninety-calendar day waiting period before a pay adjustment to an employee transferred to a title in the same pay grade.
3) Transfer to a Posted Position – If the transfer is to a posted position at the same pay grade, or a lower pay grade, the department head must place the employee’s salary at any rate within the posted range for the position. Additionally, there is a required ninety-calendar day waiting period before an employee receives a pay adjustment when transferring to a posted position.
i. Disciplinary Demotion – A salary decrease will accompany a disciplinary demotion. However, the demotion may not lower the new salary below the new title’s Pay Plan minimum. In addition, the employee may not receive any pay increases, except for a ULP increase or general increase as mandated by the legislature or university policy, for a period of at least three calendar months.
Compensation (faculty) – The provost shall determine salaries for faculty
members who are transferred.
k. General (Across-the-Board) or Performance Increase – The state or university may mandate either or both of these increases for all eligible employees. The state or university mandates eligibility requirements at the time it mandates the increase.
l. Staff Performance Award (bonus) – This is a discretionary award given by the president or the President’s Cabinet. The President's Cabinet will establish and distribute guidelines for the granting of any staff performance awards. Guidelines will include specific performance criteria, maximum award limits, and effective dates. Divisions may establish their own process of selection and additional criteria not in conflict with the specific performance criteria.
NOTE: The university can grant performance awards for classified/non-exempt employees in addition to overtime and compensatory time but cannot pay these awards in lieu of overtime and compensatory time.
m. Equity Adjustment – A salary increase to improve the salary relationship between employees internal to the university.
n. Other Special Adjustments – The divisional vice president, with the concurrence of the VPFSS, may make salary adjustments for any reason that does not fall within reasons previously stated as long as the full explanation is on the PCR.
o. Except as provided by Section 04.02 m., the university awards pay increases only for the reasons identified in this section.
04.03 Benefit Replacement Pay (BRP) – Beginning with wages paid January 1, 1996, the state discontinued paying the federal taxes imposed on state employees under the Federal Insurance Contributions Act (FICA). The institution of BRP for eligible employees offset this program. For eligibility, the university requires an employee was a state employee on August 31, 1995, and was:
a. eligible for the state-paid Social Security contribution; or
b. using unpaid leave, unless otherwise eligible; or
c. was not working because employment did not customarily include summer months, had contracted to resume employment before September 2, 1995, and such employment would have made the employee eligible if the employee had held that position at that time.
BRP is equal to 5.85% of the FICA wages based on October 31, 1995 salary, not to exceed $16,500 annually, plus the additional retirement contribution paid by the employee because of receiving BRP. The total paid out may not exceed $1,034.01 each calendar year.
An eligible employee who leaves state employment for thirty consecutive days before returning becomes ineligible to receive BRP.
BRP is included in base pay. An eligible employee’s base pay must be at least the pay plan minimum for that job plus the amount of BRP.
04.04 University Longevity Program (ULP) Staff – Each regular staff employee is entitled to receive a 1.5% increase every two years up to a maximum of four such increases from each appropriate eligibility date.
a. Eligibility Date – For a new hire, a rehire, or an employee changing from a non-ULP-eligible position to a ULP-eligible position, the employee's first ULP increase will occur twenty-four months after the appointment, if appointed on the first day of a month; otherwise the increase will occur on the first day of the month following completion of twenty-four months of service. Subsequent ULP increases become effective at either the first of the month after twenty-four months or the first of the month following completion of the twenty-four month period, as appropriate.
b. Should any of the actions in subsections 1)-4) below occur, the employee assumes a new eligibility date as of the date of the action and restarts the ULP program. The employee’s first ULP increase becomes effective twenty-four months after the action, if the action is effective on the first day of the month following completion of twenty-four months after the action. Subsequent ULP increases become effective twenty-four months after receiving the last increase.
2) Reclassification to a title with a higher pay grade resulting in a pay increase
3) Re-hire of an employee who had previously received ULP increases
4) Reallocation of the employee’s title to a higher pay grade resulting in a pay increase as in the case of a market-related increase
NOTE: Staff employees in positions covered by departmental career ladders, as well as associate vice presidents, assistant vice presidents, and college deans in the division of Academic Affairs are not eligible for ULP increases.
04.05 State Longevity Pay and Hazardous Duty Pay – Certain staff employees are entitled to receive longevity pay or hazardous duty pay in addition to their regular salaries.
a. State Longevity Pay – Each regular full-time staff employee, excluding law enforcement officers eligible for hazardous duty pay under provisions of state law, is entitled to longevity pay of $20 per month for each two years of service as an employee of the State of Texas up to and including forty-two years of service. This pay will begin at the end of the second year of state service and will increase in $20 increments at the end of each two years thereafter.
b. Hazardous Duty Pay – The position of commissioned peace officer at state institutions of higher education is considered a hazardous duty position and, as such, officers are entitled to hazardous duty pay of $10 per month for each year of service in a state hazardous duty position. Eligible part-time employees receive a proportional amount of hazardous duty pay. Hazardous duty pay begins after one year of hazardous duty service and will increase in $10 increments at the end of each year thereafter, which will include any prior time in hazardous duty service to satisfy the one-year delay.
c. Conditions and Limitations:
1) To qualify for state longevity pay for a month, an employee must work in a full-time position, not take leave without pay on the first workday of the month, and have accrued at least two years of service credit by the end of the preceding month. An employee who qualifies for hazardous duty pay on the first workday of the month is entitled to hazardous duty pay for that month.
2) An eligible employee who enters leave without pay status or who terminates state employment after the first workday of the month is entitled to full state longevity or hazardous duty pay for the month. State longevity and hazardous duty pay are not prorated.
3) An eligible employee who transfers from one state agency to another state agency after the first workday of the month is entitled to payment of full state longevity or hazardous duty pay for the month by the state agency employing the individual on the first workday of the month.
d. Creditable Service:
1) To determine the amount of creditable state service for longevity and hazardous duty pay, the university will count all prior employment with any other State of Texas agency or institution, including employment as a student worker. Length of service is determined by counting the actual days, months and years of state employment. Independent school districts and junior or community colleges are not considered state employment.
2) Longevity and hazardous duty pay for employees who transfer from one type of position to another are determined as follows:
a) If a
state employee is receiving longevity pay and transfers to a position requiring
the performance of hazardous duty, the employee will continue to receive
longevity pay for the years of service performed in the previously-held
position and will receive hazardous duty pay for the years in the hazardous
duty position. Employees may not receive longevity pay and hazardous duty pay
for the same years. However, when computing the total years of service as a
state employee, the total will include the years spent at both the
non-hazardous and the hazardous duty job.
b) If a state employee working in a hazardous duty position transfers to a non-hazardous duty position, the employee will no longer receive hazardous duty pay. The employee will receive longevity pay based on the total number of years of service as a state employee. Thus, the longevity pay will include the years of service in the hazardous duty position.
c) A state employee who received hazardous duty pay based on total state service performed before May 29, 1987, is entitled to continue to receive hazardous duty pay based on that service if the employee continues to hold a hazardous duty position.
05. PROCEDURES FOR EXTRA COMPENSATION FOR TEACHING ACTIVITIES
05.01 Full-time FLSA exempt staff employees or split appointees receive extra compensation for academic instruction performed beyond the normal 40-hour required work week. UPPS No. 04.04.12, Compensation in Excess of Base Annual Salary for Staff establishes the responsibility for determining the appropriateness of such payments. Only unclassified/exempt employees will receive compensation for teaching activities. Classified/ Non-exempt employees may not receive compensation nor participate in teaching activities.
05.02 An academic department instructor will normally receive extra compensation for services performed as a result of a course overload or work performed through contracted services (i. e., lecturer or consultant).
05.03 For split appointees (i. e., an employee with both faculty and exempt staff appointments as a part of the employee's normal workload), the following guidelines will apply:
a. Split appointees can have a unique pay rate for each appointment.
b. The employee must secure prior supervisory approval as well as concurrence from the appropriate divisional vice president. Employees should note they will not receive any state-granted longevity compensation for the duration of the teaching contract.
NOTE: The State Comptroller's Office has declared that only full-time non-academic employees of higher education are eligible for state-granted longevity payments. Also, full-time non-academic employment is defined as an employee who does not teach an academic course or who is not paid in full or in part from the line item faculty salaries.
If, however, a staff employee teaches a weekend or night course and receives compensation in addition to a full-time salary, longevity payments will continue as long as a full forty-hour work week is observed.
05.04 For unclassified/exempt staff employed on a full-time basis, the following apply:
a. Unclassified/Exempt staff may teach one three-hour or four-hour class per each long semester on campus during normal working hours with supervisory approval as well as concurrence from the appropriate divisional vice president. They may not receive compensation for teaching this class, unless they use vacation or compensatory time to cover the teaching hours or the supervisor modifies the employee's work schedule around the teaching hours. In addition to the three-hour or four-hour class noted above, an exempt staff member may also teach one one-hour section of University Seminar subject to the same schedule adjustment provisions.
NOTE: These staff may not perform teaching-related activities such as prep work, grading papers, reviewing the syllabus, or any other related activities during normal working hours.
b. The employee should note that if teaching duties are included as part of the full-time appointment, the university will discontinue longevity compensation (see NOTE in Section 05.03 above).
If, however, a staff employee teaches a weekend or night course and receives compensation in addition to a full-time salary, longevity payments will continue as long as a full forty-hour work week is observed.
06. PROCEDURES FOR EXTRA COMPENSATION FOR NON-TEACHING ACTIVITIES INCLUDING EVENT WORK
Full-time staff employees who accept additional non-teaching assignments may receive compensation for such assignments. Such compensation must comply with the provisions of the subsections below as established in UPPS No. 04.04.12, Compensation in Excess of Base Annual Salary for Staff.
Prior to accepting additional non-teaching assignments in another department, an employee must obtain written approval from his or her department head.
06.01 Classified/Non-Exempt Employees
a. If a classified/non-exempt employee accepts any additional assignment within the employee's same department, the employee must be compensated in accordance with the overtime provisions described in UPPS No. 04.04.16, Overtime and Compensatory Time Policy.
b. Interdepartmental Event – If a classified/non-exempt staff employee paid from one department works additional hours for another department or organization, the second department or organization must pay the employee in cash. The hourly rate of pay for classified/non-exempt duties equals one and one-half times the employee’s regular rate of pay. The employee must perform classified/non-exempt duties. Department heads are encouraged to discuss their planned event work with Human Resources in order to ensure compensation for event work under these regulations.
The employee will record interdepartmental events on the employee’s time report and will include both the number of interdepartmental event hours worked and the account number of the second department or organization. The university will not consider interdepartmental event hours worked for the purpose of determining regular (FLSA) overtime and straight (state) compensatory time.
06.02 Unclassified/Exempt Employees – Per the Fair Labor Standards Act, employees cannot hold both exempt and non-exempt positions. Therefore, unclassified/exempt employees cannot receive additional compensation for performing extra duties outside of their classification that are considered classified/non-exempt.
07. PROCEDURES FOR NON-STUDENT NON-REGULAR EMPLOYEES
07.01 Detailed procedures for appointing and compensating non-student non-regular employees are contained in UPPS No. 04.04.03, Staff Employment.
08. PROCEDURES FOR STAFF SALARY NOTICES
08.01 In years when salary changes are recommended in the budget submitted to the Board of Regents for approval, the VPFSS will notify staff employees by mail or email of the general nature of the recommended changes.
08.02 Employees should direct questions concerning approved salary changes to the appropriate department head. If the department head cannot resolve the question, the employee should contact Human Resources for assistance.
09. PROCEDURES FOR FACULTY SALARY NOTICES
09.01 The provost issues salary notices in the form of a contract of employment for the period specified for faculty. The Academic Affairs office will maintain a copy of the contract in its personnel files.
10. REVIEWERS OF THIS UPPS
10.01 Reviewers of this UPPS include the following:
Director, Human Resources June 1 E3Y
Chief Diversity Officer and June 1 E3Y
Director, Equity and Access
Chair, Faculty Senate June 1 E3Y
Chair, Staff Council June 1 E3Y
11. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Human Resources; senior reviewer of this UPPS
Vice President for Finance and Support Services