Compensation Administration

30.1 POLICY

The University of Kentucky intends to attract and retain qualified employees by maintaining a compensation system that is both externally competitive and internally consistent.

30.2 DELEGATION

30.2.1 The University’s entire administrative and management team is responsible for the implementation and administration of the compensation program including salary administration and job evaluation program.

30.2.1.1 Human Resource Services is responsible from a university wide perspective for developing, managing and communicating the guidelines, structure and overall equity of the compensation program.

30.2.1.2 Each chancellor, vice president and community college president is responsible for implementing and effectively informing employees about the compensation program policy.

30.2.2 Human Resource Services is responsible for making recommendations to the Vice President for Fiscal Affairs who will make recommendations to the President regarding the competitiveness of salaries within the University.

30.2.2.1 These salaries will be compared to the external market place using published market data surveys used to establish rates for specific types of work.

30.2.2.2 Market analysis normally will take place at least every other fiscal year, or as often as needed, with a sample of University jobs.

30.2.2.3 The review shall take into consideration factors such as pay for similar kinds of work in the appropriate area of market, pay for comparable benchmark universities, salary surveys, and availability of funds.

30.3 COMPENSATION STRUCTURE

30.3.1 Job Grades

The University utilizes a salary structure consisting of 24 job grades which establishes the range of salary for each regular staff position. Each position receives a job grade within the salary structure using factors such as job requirements and knowledge, communications and people skills, thinking and reasoning, work environment, policy and planning, and management and fiscal responsibilities. Each job grade has a minimum, a midpoint, and top of the range.

30.3.2 Range Minimum

The pay level determined to be competitive for employees who meet the minimum qualifications for the job.

30.3.3 Midpoint

The mathematical midpoint of the salary range.

30.3.4 Top of the Range

The highest rate which will be paid in a job grade. Employees whose salary has reached or exceeded the top of the range may receive an annual adjustment in salary based on merit up to the average percentage available to all staff employees on a university wide basis.

30.4 PROCEDURE

30.4.1 NEW POSITION AND EXISTING POSITION EVALUATION

30.4.1.1 New Positions

Newly established regular positions shall be evaluated by the Compensation Office of Human Resource Services (hereafter referred to as the Compensation Office) for the appropriate job and title.

30.4.1.2 Position Evaluation for Existing Positions

The University recognizes that staff positions may change in work content or responsibilities. Therefore, a position may be evaluated when there has been a significant change in required job skills and/or responsibilities.

30.4.1.3 Procedure for Position Evaluation

A request to establish a new staff position or to evaluate an existing position shall be initiated by the department or division head or unit administrator and submitted to Compensation.

30.4.1.3.1 The request shall include the job analysis questionnaire and appropriate supporting evidence justifying the need for the evaluation.

30.4.1.3.2 All requests for new positions from state fund dollars shall be submitted through the appropriate chancellor or vice president to the president.

30.4.1.3.3 Other evaluation requests shall be sent to the appropriate designee within the sector or division for review and approval.

30.4.1.3.4 After approval by the appropriate officer in the sector, the Compensation Office shall evaluate the position. This may include interviewing appropriate supervisory personnel in the unit.

30.4.1.3.5 Positions shall be classified as exempt or nonexempt in accordance with the Fair Labor Standards Act (FLSA). (See H.R.P.& P. Number 5.0.)

30.4.1.4 Promotion Action

Evaluations which result in promotion will become effective at the beginning of the first pay period following Human Resource Services’ action.

30.4.2 SALARY ADMINISTRATION

30.4.2.1 NEW HIRES

Starting salary for new hires shall be determined as follows:

30.4.2.1.1 The hiring official shall review the new employee’s relevant education and length of related experience as well as knowledge and skills. If the new employee possesses only the minimum requirements for the position, the hiring official shall set the salary at the minimum.

30.4.2.1.2 If the employee possesses relevant education, skills, or experience beyond the minimum required, the hiring official shall propose a starting salary from minimum to first quartile and provide justification for the proposal to Human Resource Services.

30.4.2.1.3 For salaries above the first quartile the hiring official shall propose a salary and provide justification to the Chancellor, Vice President, or Community College President for approval prior to submission to Human Resource Services for final approval. No salary shall be approved above the top of the range without approval of the President.

30.4.2.1.4 If a faculty member applies for and is hired into a regular staff position the salary shall be based on new hire guidelines for regular staff employees.

30.4.2.1.5 Human Resource Services will review the proposed salary for compliance with University policy prior to final approval of an offer.

30.4.3 PROMOTION & EVALUATION

30.4.3.1 Promotion is advancement to a position with a higher job grade.

30.4.3.1.1 Salaries for employees who are promoted or whose positions have been evaluated resulting in a promotion shall be proposed and approved in the same manner as with new hires except that Human Resource Services may approve an increase up to 20% of the prior salary not to exceed the midpoint of the new salary range.

30.4.3.1.2 Promotional increases greater than 20%, or exceeding midpoint of salary range require approval of Human Resource Services and approval of the Chancellor, Vice President, or Community College President.

30.4.3.2 Career Ladder Promotional Opportunities

Promotional opportunities also exist in certain job classifications where career ladder positions have been established and approved. Salaries for employees who advance in career ladder positions shall be determined using the process described under promotion and evaluation.

 

30.4.3.3 Mandatory Credentials

Some positions in the University require that an employee obtain additional certifications, registrations, licensures or relevant academic degrees as an ongoing requirement for the position.

30.4.3.3.1 Additional education, certification, registration or licensure for a position shall be related to the area of employment. Such requests for a position must be approved by the appropriate Chancellor or Vice President and forwarded to Human Resource Services for approval.

30.4.3.3.2 When additional education, certification, registration or licensure has been obtained, an employee’s supervisor may propose the employee’s salary be increased by 8% not to exceed the maximum salary of the job grade.

30.4.3.3.3 The Chancellor or Vice President forward a copy of the additional credential for final approval to Human Resource Services.

30.4.4 REHIRE - REINSTATEMENT

The salary of a " reinstated" or "reemployed-reinstated" employee shall be determined by the procedures established for new hires (See Salary Administration - New Hire). However, if an employee returns to the same or similar position within one year, the employee’s previous salary may be reinstated.

30.4.5 LATERAL TRANSFER

30.4.5.1 A lateral transfer is the movement by an employee to another staff position with the same assigned grade within the job classification system.

30.4.5.2 In case of a lateral transfer, the employee usually will not receive an increase in pay.

30.4.5.3 If an employee transfers before the effective date of a merit or general scale adjustment increase, the department to which the employee transfers should consult with Human Resource Services to determine the proper salary.

30.4.6 DEMOTION

30.4.6.1 A demotion is the movement of a regular full-time or half-time staff employee from one regular full-time or half-time staff position to a lower grade within the job classification system.

 

30.4.6.2 The rate of pay for a demoted employee shall be determined by Human Resource Services when an employee has applied for and has been hired for a position of a lower grade.

30.4.6.3 The employee's salary in the new position shall normally be adjusted to the same relative percentage of the grade from which the employee was demoted.

30.4.6.4 The salary of a person demoted for unsatisfactory work performance shall normally be the starting rate of the lower grade.

 

 

30.4.7 TRAINEE

30.4.7.1 A trainee is an employee who is within one (1) one year or less of meeting the minimum qualifications of a position.

30.4.7.2 Human Resource Services may recommend that a department accept a trainee, in the unusual case in which no applicants meet the minimum qualifications for a regular staff position.

30.4.7.2.1 To qualify as a trainee employee, an employee must be capable of meeting the minimum qualifications within one (1) year from the date of employment. Compensation rates for a trainee employee shall be established by Human Resource Services office five percent (5%) below the minimum of the assigned grade for that position.

30.4.7.2.2 A trainee is eligible for a merit increase provided the trainee meets normal merit guidelines.

30.4.7.3 At the time a trainee meets the minimum qualifications of the position, the employee shall receive an increase to the normal start rate of the grade for which the employee qualifies.

30.4.8 ACTING ASSIGNMENTS

30.4.8.1 An employee may receive a salary increase for assuming a position on an "acting" basis.

30.4.8.2 The employee who assumes an acting role shall normally receive a ten percent (10%) increase over the employee’s current salary unless ten percent (10%) is less than the minimum of the grade of the acting position or would exceed the salary for which the employee would be eligible if the employee were hired for the position on a regular basis.

30.4.8.3 If ten percent (10%) is less than the minimum of the new range, the employee shall either (1) receive an increase to the minimum of the new range, provided the employee meets the minimum qualifications, or (2) receive an increase to the trainee rate for the new position, provided the employee is within one year of meeting the minimum qualifications.

30.4.8.4 Upon completion of the acting assignment, the employee’s salary shall return to the employee’s regular salary in addition to any merit increases earned during the acting assignment.

 

30.4.9 PERFORMANCE MANAGEMENT

30.4.9.1 The University’s performance management system is designed to (1) align University, unit, and employee goals through performance planning, (2) develop and motivate employees by strengthening the partnership between them and their supervisors, (3) promote and document performance assessments based on major job responsibilities, clear and realistic performance expectations, and regular objective feedback, and (4) recognize and reward excellence.

30.4.9.2 The performance management system has three major activities which occur annually: PLANNING, FEEDBACK AND COACHING, AND ASSESSMENT:

30.4.9.2.1 A. PLANNING

30.4.9.2.1.1 The purposes of planning are to link performance

principles to unit/department and University strategies and to ensure a relevant and meaningful performance management system.

30.4.9.2.1.2 The first two steps of a performance management

review are as follows: (1) A review of the unit’s prior year performance management process is conducted by the unit head. If updates are required, changes are made and clearly communicated to all unit employees. (2) A review of the role and responsibilities for each employee and the relative importance of each responsibility to the job will be conducted jointly by the employee and supervisor..

30.4.9.2.1.3 Next, the University’s and the unit’s/department’s

goals are communicated to each employee by management in the respective unit/department.

30.4.9.2.1.4 The final steps relate to individual performance goals

and development planning.

30.4.9.2.1.5 A performance plan, consisting of specific major job

responsibilities with related performance factors, will be prepared by the supervisor with additions or revisions made by the employee .

30.4.9.2.1.6 The performance plan is developed through a joint

review between the employee and supervisor.

30.4.9.2.1.7 The final plan is the responsibility of the supervisor.

Developmental objectives, in addition to performance objectives and standards, should be established.

30.4.9.2.2 B. FEEDBACK AND COACHING

30.4.9.2.2.1 Feedback and coaching occur on an on-going basis

and at the mid-year review. The purpose of feedback and coaching is to provide supervisors with an opportunity to recognize effective performance and provide coaching for improvement. As a part of the feedback and coaching component, employees are encouraged to gather informal feedback from others throughout the year.

30.4.9.2.2.2 An employee seeks on-going feedback from a

supervisor and may seek feedback from peers, subordinates, and/or customers. A supervisor provides timely feedback to motivate an employee toward improved performance.

 

30.4.9.2.2.3 The midyear review is a progress meeting which is

required to provide an opportunity to discuss and update expectations set at the beginning of the year and focus on performance to date.

30.4.9.2.3 C. ASSESSMENT

30.4.9.2.3.1 Assessment is an on-going process that results in a

year-end review.

30.4.9.2.3.2 The purposes of assessment are three-fold, as

follows: (1) to review employee performance results during the year; (2) to determine merit rating; and (3) to determine the annual pay increase.

30.4.9.2.3.3 A self-review is completed and submitted to the

supervisor by the employee. The supervisor completes the performance review of the employee. The supervisor reviews that evaluation with higher level(s) of management prior to discussion with the employee. The supervisor then holds the year-end performance evaluation meeting with the employee. The annual pay increase is determined and subsequently communicated to the employee by the appropriate administrator. Pay adjustments shall take effect at the beginning of the fiscal year. The year end review starts the planning process for the next year.

30.4.10 COMPENSATION FOR OVERTIME

30.4.10.1 A staff position is determined to be exempt from overtime compensation on the basis of job duties, responsibilities, salary, and in some cases minimum education required.

30.4.10.1.1 This determination is made under the provisions of the Fair Labor Standards Act (FLSA) and administered by the Human Resource Services.

30.4.10.1.2 The FLSA requires that positions which are determined to be non-exempt (i.e. not exempt from overtime compensation) will be compensated for hours worked beyond forty (40) hour work week.

30.4.10.2 Overtime pay is awarded for hours in excess of forty (40) in the standard work week and compensated at a wage rate of one and one half (1.5) times the hourly wage rate of that staff employee. Overtime pay is not rewarded to a nonexempt employee unless the employee works more than forty (40) hours per week.

30.4.10.3 In computing eligibility for overtime in a work week, all paid leaves except temporary disability leave are counted as hours worked and added to the actual number of hours worked. Overtime shall be authorized in accordance with procedures established by each chancellor or vice president, as appropriate.

30.4.10.4 Overtime shall be compensated in one of two ways, as follows:

• • Each hour of work in excess of forty (40) hours is compensated by one and one half (1.5) hours of time off in the same pay period; or
  • One and one half (1.5) times the rate of pay is given for hours worked in excess of forty (40) hours in the same week.

30.4.10.5 For a non-exempt staff employee assigned to two or more departments of the University, thus creating a multiple or dual employment situation, Human Resource Services shall review and either approve or deny such employment situation, if total hours worked would exceed forty (40) hours per work week.

30.4.11 Definition of Hours Worked

30.4.11.1 State law defines hours worked as any time a non-exempt employee is suffered or permitted to work, all time spent by the employee in physical or mental exertion, whether burdensome or not, that is controlled, required, or permitted (although perhaps not requested) by the employer, and pursued necessarily and primarily for the benefit of the employer.

30.4.11.2 Examples of activities and their classification as hours worked or hours not worked are as follows:

30.4.11.2.1 Work permitted away from the premises, for example in the employee's home, is working time. However, on-call time at home is not working time. The appropriate supervisor shall approve employees' working away from the premises.

30.4.11.2.2 Breaks of ten or fifteen (10-15) minutes are working time. (See Human Resources Policy and Procedure Number 70.0: Attendance/Hours of Work.)

30.4.11.2.3 Meal periods when an employee is completely relieved from duty and performs no duties (including answering the phone) of the job are not working time.

30.4.11.2.4 Time traveling between home and work is not working time, although travel as part of the duties of the work day is working time.

30.4.11.2.5 Time when the employee is available but not working is working time if the employee is required to be on the premises and thus not free to use time as the employee pleases.

 

 

30.4.12 SUPPLEMENTAL PAY

The University also recognizes the need for supplemental pay for some designated positions and/or for hours of work which may be in periods of time or in circumstances other than those considered normal. Human Resource Services is responsible for establishing and administering supplemental pay policies.

30.4.12.1 One of these types of supplemental pay is referred to as a shift differential, a premium pay in addition to the normal hourly rate of pay.

30.4.12.1.1 A differential rate of pay shall be added to the regularly established rate of pay for employees working on recognized second and third shift operations.

30.4.12.1.2 A department head, or other appropriately designated official, shall determine the exact hours of the second and third shift operations.

 

 

30.4.12.1.3 Human Resource Services shall coordinate and insure that all employees within the University in similar job classifications shall or shall not receive a shift differential.

30.4.12.1.4 An employee who works hour(s) immediately prior to or immediately following the employee's regularly scheduled work shift shall receive a rate of pay appropriate to each shift for the hours worked in the shift.

 

_____________________________________________________________________

Note: Shift differential pay is added to the normal hourly wage rate as a basis for computing the overtime rate, but it is not added to the normal hourly wage rate for computing annual increments.

_____________________________________________________________________

30.4.12.2 Another supplemental pay is referred to as on-call pay, a premium pay whereby an employee is scheduled to remain available to be called to work during a scheduled time period.

30.4.12.2.1 The employee who is not called to work during the scheduled on-call period shall receive the appropriate on-call pay although no hours were worked.

30.4.12.2.2 The employee who is called to work during the scheduled on-call period shall also receive the appropriate wages for the actual hours worked in addition to the on-call pay.

______________________________________________________________________________

Note: For overtime purposes, on-call pay time is not considered hours worked.

 

30.4.12.3 Other differential rates for specific jobs are occasionally authorized by Human Resource Services, as warranted.

30.4.13 SPECIAL ASSIGNMENT (OVERLOAD)

30.4.13.1 Overload must be in keeping with the Administrative Regulation Policy on Consulting and other Overload Employment (AR II-1.1-1).

__________________________________________________________________________ Note: A non-exempt staff employee on an overload basis in excess of forty (40) hours in a specific week will be paid one and one half (1.5) the employee’s normal hourly rate or by the established fee schedule whichever is greater (See Human Resources Policy and Procedure: Compensation for Additional Work - Overtime). __________________________________________________________________________

 

30.4.13.2 Qualifications

In an instance where additional compensation is requested for such a specialized assignment, all the following criteria must be strictly satisfied (See Administrative Regulations, AR II-1.1-1, Section IV.), with the exception that (b) and (d) below need not be met when the assignment involves the teaching of a night or extension class or the preparation and/or grading of correspondence class materials.

30.4.13.2.1 The assignment is outside the organizational unit(s) in which the staff employee is regularly assigned, except with approvals as outlined below:

30.4.13.2.1.1 Organizational unit in chancellor/vice president sectors in the University System is defined as the department level in academic units and the division level in non-academic units. For the Community College System, organizational unit is defined as the employing college.

 

30.4.13.2.1.2 Teaching a night or extension class does not have to be outside the organizational unit to qualify for overload eligibility whenever all other criteria are met.

30.4.13.2.1.3 Only with prior approval of the chancellor or vice president may an exempt employee teach a University of Kentucky course for academic credit within the organizational unit to which the employee is regularly assigned.

 

30.4.13.2.2 The assignment is clearly beyond the scope of the specified duties, as set forth in the written job description of the staff employee’s regular position, that is performed during normal and usual working hours.

30.4.13.2.3 Except when an exempt employee teaches a University of Kentucky course for academic credit, and the assignment to be performed is totally separate and apart from normal and usual working hours.

30.4.13.2.3.1 Vacation leave on a paid basis shall not be authorized for the purpose of performing an assignment which also will be paid on an overload basis; this would constitute double payment to the staff employee by the University.

30.4.13.2.3.2 The period normally excluded is 8:00 a.m. to 5:00 p.m. Staff who teach during the normal working hours shall adjust the normal working hours to make up the time. A staff employee may not teach more than one (1) course during the regular working hours.

 

 

30.4.13.2.4 Except when a staff employee teaches a University of Kentucky course for academic credit, the assignment is of special and infrequent nature thereby making it unfeasible to hire a temporary employee to perform the assignment.

30.4.13.2.4.1 Teaching a night or extension class does not have to be of special or infrequent nature in this way to qualify for overload eligibility whenever all other criteria are met.

30.4.13.2.5 The assignment clearly serves the best interests of the University.

 

30.4.13.2.6 In no case is any such assignment to be undertaken without the prior express approval of the dean/president of the college or the head of the administrative/operating division under whom the employee is regularly administratively responsible and the dean/president of the college or the head of the administrative/operating division who will be administratively responsible for the employee’s overload assignment.

30.4.13.3 Overload Compensation

Refer to the Administrative Regulation (AR II-1.1-1).

30.4.13.4 Procedure

30.4.13.4.1 The unit in which the employee is regularly assigned shall complete the first block of Form S (the Internal Overload Form for Exempt Staff Employee) and forward the Form S to the unit in which the overload assignment will be performed.

30.4.13.4.2 The unit in which the overload assignment will be performed shall complete the second block of page 1 of the Form S, secure the signature of the immediate administrative supervisor of the employee in the overload assignment in block 3 of page 2 of Form S, and return the form to the unit in which the employee is regularly assigned.

 

30.4.13.4.3 After securing the signature of the employee (first block of page 2 of Form S) and that of the immediate administrative supervisor for the employee in the regular assignment (second block of page 2 of Form S), the unit in which the employee is regularly assigned shall forward the Form S to Human Resource Services. If the overload assignment is within the unit in which the employee is regularly assigned, that unit shall secure authorization for the overload assignment from the appropriate chancellor or vice president and attach such authorization to the Form S.

30.4.13.4.4 The Director of Human Resource Services or a designee shall sign the Form S if all conditions of AR II-1.1-1/Human Resources Policy - Compensation for Additional Work - Special Assignments (see qualifications above) have been verified and forward the form to the dean or president of the college where the employee is regularly assigned.

30.4.13.4.4.1 The Form S is then sent to the dean or president of the college where the overload assignment will be performed.

30.4.13.4.4.2 That unit shall return the Form S to Human Resource Services; HR shall distribute copies of the Form S to designated offices.

30.4.13.4.4.3 The chancellor or vice president shall provide a quarterly report to the President.

 

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