Policy 420.15 - Pay Rate Adjustments for Exempt Staff

ORIGINATOR: Associate Vice President of Human Resources

SUBJECT: Pay Rate Adjustments for Exempt Staff

1. Purpose
1. This policy outlines managerial actions that may result in the adjustment of an employee's rate of pay. 
2. University of Maryland University College's (UMUC) Exempt Pay Program is market-based and is intended to support the university's competitive position in recruiting and retaining high caliber employees through flexible salary administration policies and procedures.
2. Scope
1. This policy covers executive, administrative, professional, outside sales, and computer employees who are categorized as exempt under the Federal Fair Labors Standards Act (FLSA). 
2. Faculty members are covered under a separate policy.
3. Definitions
1. "Merit Adjustments" are changes to an employee's base pay rate based on performance.  Merit adjustments are usually determined during the annual salary adjustment process based on overall guidelines established by the USM and/or by the UMUC President.
2. "Promotional Increases" are changes to an employee's base pay rate to recognize assignment of the employee to a higher level of responsibility and/or a different type of work which results in a change to a higher salary Zone. Promotional increases shall be market based and will, at minimum, bring the employee's salary to the minimum pay of the appropriate Zone.
3. "Reclassifications" occur when a position is assigned from one Zone to a new Zone. Reclassifications are based on significant and substantial changes in the position's primary duties that have evolved or when structured changes occur in the position. A position may or may not have an incumbent at the time of a reclassification. Reclassifications may result in a higher or lower Zone assignment.

Reclassification pay changes are adjustments to an employee's base pay rate that occur when the Range/Zone to which the person's position is assigned is changed by raising it or lowering it to a new Zone without a competitive recruitment. Reclassification pay changes shall be determined using the market analysis in combination with an internal equity analysis and must bring the employee's salary to at least the minimum pay of the appropriate Zone.

4. "Reductions in Pay as the Result of Demotion" occurs when an employee is assigned to a job which is in a salary Zone lower than the one to which the employee's current job is assigned. Demotions may result in a lower rate of pay.
5. "In-Line Adjustments" address specific cases of salary inequity, incorrect slotting, or other salary equity problems identified by management.
6. "Lateral Transfers" occur when an employee is reassigned to or applies for and receives a position that is in the same salary Range/Zone as his/her current position. In this situation, there is rarely a change in salary.
7. "Acting Assignments" occur when, in order to meet urgent business needs, it is necessary to appoint an exempt employee to an acting capacity assignment. When appointing an exempt employee to an acting assignment, the following must be adhered to:
1. Designating an employee to an acting capacity status is justified only when time or circumstances do not permit the immediate selection of a permanent appointment under the established selection and appointment procedures for exempt staff.
2. An employee in an acting capacity shall meet the minimum academic and professional qualifications for the position to which s/he will be assigned.
3. Management may recommend a salary increase if the acting assignment is at a higher level than the current role. The amount of any increase will be determined using the job's market analysis and internal equity analysis and must bring the employee's salary to at least the minimum of the appropriate Zone.
4. Acting assignments should not exceed 12 months in duration. At the conclusion of the acting assignment, the salary will be returned to the original rate prior to the acting increase. 
4. Policy
1. In making salary decisions the responsible administrator, in consultation with the Office of Human Resources, shall determine a fair and competitive salary that recognizes the forces of the external labor market as well as internal equity, as appropriate.
2. This policy is subject to applicable legislation and the USM Chancellor's Compensation Guidelines.
5. Procedures
1. See UMUC Administrative Guidelines for Exempt Staff Pay Program.
6. Records
1. The signed original document initiating any job classification or salary-related action becomes part of the employee's personnel file.
2. Written notification of the change shall be provided to the employee.
7. Responsibilities & Authority
1. The Associate Vice President of Human Resources, or designee, is responsible for the content and communication of this policy and associated UMUC Administrative Guidelines for Exempt Staff Pay Program. The Associate Vice President of Human Resources shall identify his/her designee(s) as appropriate for this policy.
2. Officers are responsible for ensuring equitable administration of salaries within the requirements of this policy.
3. Managers and supervisors are responsible for administering salaries consistent with applicable direction, policies, procedures, and/or guidelines received from their Officer, USM and/or UMUC.