UPPS 04.04.11 - University Classification and Compensation

POLICY STATEMENT

Texas State University is committed to adhering to fair, equitable, and competitive staff compensation policies, programs, and practices to attract, retain, and reward highly qualified employees.

1. SCOPE

   1. This policy sets forth classification and compensation procedures for all staff employees, including those paid from grants and contracts. The executive vice president for Operations and Chief Financial Officer (EVPO/CFO) must approve any exceptions to this policy.

   2. The compensation and classification procedures of this policy strive to provide flexibility while ensuring fairness and the most efficient use of the university’s resources. However, all policy and procedure decisions are subject to normal administrative review and approval, and must comply with applicable state, federal, Texas State University System, and university policies.

   3. This policy pertains to regular staff employees, Non-Student Non-Regular (NSNR) staff employees, and student workers (see Section 02. for definitions).

2. DEFINITIONS

   1. Adjustments – Subject to budget availability, separate funding pools may be allocated for equity and/or market adjustments.

      1. An equity adjustment is an adjustment based on comparative equity between similarly situated employees performing the same or substantially the same work.

      2. A market adjustment is an adjustment that is based upon external market factors as confirmed by reputable salary surveys utilized by Human Resources.

   2. 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 from that timeframe offsets this program.

   3. Bonus Pay – a one-time, discretionary payment that does not increase an employee’s base pay but is subject to applicable withholdings as required by law.

   4. Employee Categories at Texas State

      1. Faculty – employees with academic rank holding a teaching appointment for a fixed term as determined by the president and approved by The TSUS Board of Regents (see TSUS Rules and Regulations, Chapter V, Section 4).

      2. Administrative Officers – as determined by the president and approved by The TSUS Board of Regents. Includes, but is not limited to, vice presidents and academic deans. These positions are exempt from the Fair Labor Standards Act’s (FLSA) overtime provisions.

      3. Unclassified Staff – are exempt from the FLSA’s overtime provisions.

      4. Classified Staff – are covered by the FLSA’s overtime provisions.

      5. Student Workers – an individual who is working for Texas State University but is at all relevant times enrolled as a student at Texas State and whose primary affiliation with the university is educational in nature. This includes doctoral and graduate assistants. Student workers are generally categorized as classified, non-exempt. Doctoral and graduate teaching, instructional, and research assistants are generally classified as unclassified, exempt.

         Additional information on student employees can be found in UPPS No. 07.07.03, Hourly Student Employment Procedures; UPPS No. 04.04.03, Staff Employment; UPPS No. 07.07.06, Graduate Student Employment; and the University Pay Plan.

      6. Regular Staff Employees – employees who work at least half the available work hours in a given month for an undefined period, or for a defined period of four and one-half months or more, excluding students employed in positions that require student status as an employment condition. Regular employees are benefits-eligible.

      7. Non-Student, Non-Regular (NSNR) Staff Employees – Non-student employees whose assignments are temporary and part time in nature. NSNR employees are not benefits-eligible and must work less than half the available work hours in a given month.

   5. Fair Labor Standards Act (FLSA) – a federal statute that establishes, among other things, what types of positions may be exempt from overtime compensation and the federal minimum wage. Employees who are eligible for overtime under FLSA must be paid at a rate not less than one and one-half times the regular rate of pay after 40 hours of work in a work week or, in the case of public employers, such as Texas State, be provided with compensatory time off in lieu of overtime pay subject to specified regulations.

      1. Unclassified staff are not eligible for overtime under the FLSA but may be eligible for state compensatory time (see UPPS No. 04.04.16, Overtime and Compensatory Time Policy).

      2. Classified staff are eligible for overtime pursuant to the FLSA and may be eligible for state compensatory time (see UPPS No. 04.04.16, Overtime and Compensatory Time Policy).

   6. General (Across-the-Board) Pay Adjustment – a pay adjustment which provides a salary adjustment (in dollars or percentage terms) to designated employees with little to no variance based on meritorious performance.

   7. Merit Pay – a discretionary increase to an employee’s base salary based upon work performance. Salary adjustments are funded through the university’s merit pool and typically take effect at the start of each fiscal year.

   8. Merit Pool – subject to budget availability, the total amount available for merit increases in a given fiscal year.

   9. Pay Grade – represents the pay range of a job as reflected in the University Pay Plan based on the duties and responsibilities in the job description as assessed against market data and internal comparators.

   10. Promotion – The movement of an employee to a position with a higher job title within the university’s title structure. This movement may or may not result in a change in salary grade within the university’s pay plan. Promotions, except for promotions to the next level in sequence career progression, are typically competitive and will generally be posted to accept applications. Requests not to post non-career ladder promotions should be discussed with the associate vice president and CHRO. In sequence career progression promotions are step promotions within an employee’s typical job series (e.g., analyst to senior analyst) and do not require posting.

   11. Reclassification – may occur following a job audit performed by Human Resources that confirms a significant change in job duties and responsibilities of an existing position necessitating a new job title or pay grade.

   12. Red Circling Based on Salary Maximum – the freezing of an employee’s base salary when their salary is at or above the maximum pay rate for the assigned pay grade. When an employee’s salary is red circled, they may receive merit or other approved pay adjustments via lump sum awards.

   13. Split Appointees – employees simultaneously appointed to a faculty and a staff title. Employees must be exempt from FLSA overtime (unclassified) to have a split appointment. The percentage of time (e.g., full-time equivalent (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.

   14. Transfer – the movement of an employee to another position. A transfer may be voluntary or involuntary and may result in an employee moving to a role in a different pay grade.

   15. University Pay Plan – describes the pay grades and ranges for regular staff positions.

3. PROCEDURES FOR CLASSIFYING AND RECLASSIFYING STAFF POSITIONS

   1. The Human Resources website lists the steps for classifying a new staff position or reclassifying an existing position.

   2. Classification

      The duties and level of the position determine the assignment of a classification (job title) to a position. Each regular and NSNR staff position is assigned a classification.

   3. New Positions

      When creating a new position, regardless of funding source, the department head must submit a position request via the position management system. Human Resources will review the new position request to determine the proper classification and pay grade. The Budget Office will verify funding availability for the new position. The request must be fully approved before proceeding to post and hire for the position.

   4. Reclassifications

      When requesting reclassification of an existing position, regardless of funding source, the department head must submit a position reclassification request through the approval workflow via the position management system. Human Resources will review the position reclassification request to determine the proper classification and pay grade. The Budget Office will verify funding availability for the new position, and the approval of any reclassifications will be subject to verification that the budget necessary to support the reclassification is available. The request must be fully approved before proceeding to post where posting is required and hire for the position. Human Resources is responsible for developing guidelines related to maximum increase amounts for position reclassifications or promotions.

      When Human Resources review results in a recommendation supporting a position reclassification request, the following steps will be utilized to determine the new salary:

      1. Reclassification to a Title in a Higher Pay Grade – If the employee’s salary is below the University Pay Plan minimum of the new title, the employee’s pay will be adjusted to an amount that at least meets the new pay grade minimum provided that the increase will not be in excess of a 10 percent increase in base pay. Increases beyond 10 percent require approval from the associate vice president and CHRO and the EVP/CFO. If the salary increase needed to move the employee to the new pay range and the minimum would be in excess of 10 percent, the university may phase the increase in over multiple fiscal years by submitting a Personnel Change Request (PCR) through administrative approval channels.

      2. Reclassification to a Title in the Same Pay Grade – If the employee’s current salary is within the pay grade range of the reclassified position, the transition is considered a lateral move, and no salary adjustment will generally be provided.

      3. Reclassification to a Title in a Lower Pay Grade – The employee’s salary will not change unless the employee’s salary is above the maximum for the new pay grade. In such a case, the employee’s salary will be reduced to the new pay grade maximum.

   5. If the reclassified position has an incumbent, the incumbent will be required to successfully complete a background screening, as described in UPPS No. 04.04.14, Staff Reduction in Force.

      The effective date of the reclassification will be no sooner than the completion date of the background check.

      If a reclassification results in a change in FLSA status, the effective date will be set to the first working day of the pay period following successful completion of the background check.

4. PROCEDURES FOR GENERAL COMPENSATION ADMINISTRATION

   1. All base pay adjustments are subject to Human Resources and Budget Office review, regardless of the action precipitating the change.

   2. Reclassifications, transfers, and promotions with accompanying pay adjustments generally take effect on the completion date of the background check. Staff may not begin performing the regular duties of their new roles until the official effective date of the change.

   3. Article III, Section 53 of the Texas Constitution prohibits the payment of retroactive increases to state employees. As such, any pay adjustments resulting from personnel actions will be applied to future pay dates in accordance with Texas State’s published payroll schedule.

   4. University Pay Plan Pay Grades

      1. Human Resources is responsible for administration of the University Pay Plan, including the assignment of positions to the pay grades and ranges. Positions are placed into grades based on market assessments using verified and reliable salary surveys and internal comparators. Grade ranges are designed so that positions are calibrated to the comparative market data.

      2. If an adjustment to the pay grades and ranges are approved by the associate vice president CHRO and the EVP/CFO, they will generally be effective from January 1 of a given calendar year. Salary offers for new employees covered by the University Pay Plan will be based on the minimums as described in the then published grades/ranges.

      3. If an employee’s base pay falls below the minimum of their assigned pay grade, adjustments will be reviewed during the annual salary review process. Approved adjustments to minimum will not be in excess of a 10 percent increase in base pay. If the salary increase needed to move the employee to the pay range minimum would be in excess of 10 percent, the university may phase the increase over multiple fiscal years.

   5. Salary Spread

      1. The university offers a salary spread program to certain employees on nine-month appointments, such as benefits eligible faculty members and staff with appointments of similar structure. Eligible employees may elect to participate in the university’s salary spread program by submitting a Salary Spread Election form. Under this program, employees may choose to receive their nine-month salary in 12 monthly payments. The monthly payments may not be equalized particularly for new employees whose start date may not align with the academic year. An initial election may only be made prior to the start of the fiscal year. Any elections received after the first day of the fiscal year will be deferred until the start of the next fiscal year. Salary spread elections remain in effect until either:

         1. the employee signs an authorization requesting to revert to a nine-month pay basis prior to the start of the next fiscal year; or

         2. the employee becomes ineligible.

   6. Compensation

      1. Base Salary – The university will pay each employee an hourly or monthly rate consistent with the pay range assigned to the employee’s position title in the University Pay Plan.

         Employee pay rates will be no lower than the minimum and no greater than the maximum of the position’s assigned pay range in the University Pay Plan. Pay rates exceeding the maximum of the pay range will be frozen (red-circled) until such time as the pay plan increases to an amount higher than the employee pay rate in question with the exception of University Longevity Program (ULP) increases (see Section 04.08).

         Employees filling multiple positions may have multiple pay rates but may not concurrently hold an FLSA exempt and non-exempt position.

         The president will determine salaries for individuals appointed to administrative officer titles using appropriate benchmarks.

      2. Market-Based Pay Adjustment – An employee may receive a salary increase based on the market value of their position. Market-based pay adjustments proposed by a department must be approved by the appropriate divisional vice president and the EVP/CFO. Requests from divisions or departments for market adjustments are subject to Human Resources classification and compensation analysis, and Budget Office review for funding availability. The results of the Human Resources and Budget Office analysis must be attached to the PCR for the adjustment. As a general rule, market adjustments will only be reviewed during the annual salary review process, but exceptions may be made where there are verified retention-related concerns. Market adjustments recommended by Human Resources via the year end compensation review process will be reviewed with the applicable vice president and will be subject to the availability of funding. Adjustments are not considered finalized, and should not be communicated as such, until they have been fully approved by all administrative channels.

      3. Merit-Based Pay Adjustment – Except for legislatively approved across-the-board general pay increases, employees are subject to eligibility rules for merit-based pay adjustments which include, but are not limited to:

         1. must be continuously employed at the university in a merit-eligible position during the six months immediately preceding the adjustment effective date;

         2. at least six months must have elapsed since the employee’s last salary increase if the salary increase exceeded the approved general merit budget percentage; and

         3. the proposed adjustment does not increase the employee’s salary above the pay grade maximum.

         Merit-based pay adjustments are discretionary pay increases based on work performance and are generally issued as an adjustment to base salary, but they will be provided as a one-time payment if the employee is red circled.

      4. Equity Adjustments – Any request for an equity adjustment made by a department should be made through Human Resources and reviewed for funding availability by the Budget Office. Equity adjustments recommended by Human Resources via the year end compensation review process will be reviewed with the applicable vice president and will be subject to the availability of funding.

      5. Salary Adjustments – Members of the President’s Cabinet may propose salary adjustments for any reason that does not fall within reasons previously stated. Efforts should be made to confine these requests to the year-end salary review process, barring exceptional circumstances such as verified concerns related to retention or critical operational matters. Other salary adjustment PCRs must contain a full explanation of the grounds for the adjustment and should be made through Human Resources and reviewed for funding availability by the Budget Office prior to approval by the EVP/CFO.

      6. Employees may only receive one salary increase of the type described in sections (a) through (e) of this section per fiscal year if any such salary increase exceeded the approved general salary increase budget percentage.

      7. Promotion Pay (Staff) – When an employee moves into a position at a higher pay grade, the employee will receive a pay increase to at least the minimum of the pay range for the new position provided that the increase will not be in excess of a 10 percent increase in base pay. Increases beyond 10 percent require approval from the associate vice president and CHRO and the EVP/CFO. If the salary increase needed to move the employee to the new pay range minimum would be in excess of 10 percent, the university may phase the increase over multiple fiscal years.

         When an employee is temporarily moved to a position in a higher pay grade (e.g., is placed in an “acting” or other temporary role), the move is considered a temporary assignment, not a promotion. Any additional pay for the temporary assignment processed under these provisions is at the divisional vice president’s discretion.

      8. Transfer Pay (Staff) – When an employee transfers to another position with the same or lower pay grade minimum salary, not as a result of a disciplinary action, the employee’s pay will not change. If the employee’s pay is above the new pay grade maximum their pay will be red circled.

      9. Disciplinary or Performance Based Demotion – A salary decrease may accompany demotion that results from a disciplinary matter or that is due to poor performance. However, pay may not be lower than the new title’s University Pay Plan minimum.

      10. General (Across-the-Board) Pay Adjustments – On occasion, the state or university may mandate this type of pay adjustment. The issuing authority (state or university) defines the eligibility requirements at the time of the mandate.

      11. Bonus Awards – Members of the President’s Cabinet may, in consultation with the associate vice president and CHRO and the EVP/CFO establish and distribute guidelines for the granting of one time bonuses, such as, but not limited to, staff performance awards. Human Resources is responsible for maintaining guidelines for university-wide programs. Any awards under this provision are subject to funding availability.

   7. For eligibility under BRP, an employee must have been a state employee on August 31,1995. Contact Human Resources for more information about this program.

      BRP is included in base pay. An eligible employee’s base pay must be at least the University Pay Plan minimum for that job, plus the amount of BRP.

   8. University Longevity Program (ULP) – Each regular staff employee is entitled to receive a 1.5 percent base pay increase every two years up to a maximum of four such increases from the initial eligibility date and are limited to four such increases during an employee’s cumulative employment in a ULP position.

      1. Eligibility Date – For a new hire or an employee changing from a non-ULP-eligible position to a ULP-eligible position, the employee’s first ULP increase will occur on the first day of the month following completion of 24 months of continuous service. Subsequent ULP increases become effective the first of the month following completion of the 24-month period, as appropriate.

      2. Requests not to post non-career ladder/in sequence career progression promotions should be discussed with the associate vice president and CHRO.

   9. 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.

      1. 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 42 years of service. This pay will begin at the end of the 24th month of lifetime service credit and will increase in $20 increments at the end of each two years thereafter.

      2. Hazardous Duty Pay – The position of commissioned peace officer at state institutions of higher education is 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 the 12-month period of lifetime service credit 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.

      3. 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.

      4. Creditable State 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:

            1. 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 in both the non-hazardous and the hazardous duty positions.

            2. 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.

            3. 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.

5. PROCEDURES FOR EXTRA COMPENSATION FOR TEACHING ACTIVITIES

   1. Regular unclassified staff employees or split appointees may receive extra compensation for academic instruction performed outside of the regular work schedule. UPPS No. 04.04.12, Pay Above Base Annual Salary for Staff, establishes the responsibility for determining the appropriateness of such payments. Classified staff may not receive compensation nor participate in teaching activities.

      Unclassified staff may teach one class each long semester during normal working hours with supervisory approval, as well as concurrence from the appropriate divisional vice president. They may not receive additional compensation for teaching this class unless they use vacation or compensatory time to cover the teaching hours. In addition to the three- or four-hour class noted above, an unclassified staff member may also teach one one-hour section of University Seminar subject to the same schedule adjustment provisions.

      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

      The employee must secure prior supervisory approval, as well as concurrence from the appropriate divisional vice presidents. Employees should note they may not receive any state longevity compensation for the duration of the teaching contract as academic employees at an institution of higher education are excluded by this program by the state.

   2. Split appointees can have a unique pay rate for each appointment.

6. PROCEDURES FOR EXTRA COMPENSATION FOR NON-TEACHING ACTIVITIES

   1. Full-time staff employees who accept additional non-teaching assignments may receive compensation for such assignments, within the limitations described below. Such compensation must comply with the provisions established in UPPS No. 04.04.12, Pay Above Base Annual Salary for Staff or UPPS No. 04.04.16, Overtime and Compensatory Time Policy, as noted below.

   2. Prior to accepting additional non-teaching assignments in another department, an employee must obtain written approval from their department head.

      1. Classified Staff – If a classified staff accepts an additional assignment, the employee must be compensated in accordance with the overtime provisions described in UPPS No. 04.04.16, Overtime and Compensatory Time Policy.

      2. Unclassified Staff – Per FLSA guidelines, employees cannot hold both exempt and non-exempt positions. Unclassified staff cannot receive additional compensation for performing extra duties outside of their classification.

7. PROCEDURES FOR NON-STUDENT, NON-REGULAR EMPLOYEES

   1. Detailed procedures for appointing and compensating NSNR employees are contained in UPPS No. 04.04.03, Staff Employment.

8. PROCEDURES FOR STAFF SALARY NOTICES

   1. In years when salary changes are recommended in the budget submitted to the TSUS Board of Regents for approval, the president will notify staff employees regarding the general nature of the recommended changes.

   2. Employees should direct questions concerning approved salary changes to the appropriate department head.

9. REVIEWERS OF THIS UPPS

   1. Reviewers of this UPPS include the following:

      Position	Date
      Associate Vice President and Chief Human Resources Officer	June 1 E5Y
      Chair, Faculty Senate	June 1 E5Y
      Chair, Staff Council	June 1 E5Y

10. 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.

    Associate Vice President and Chief Human Resources Officer; senior reviewer of this UPPS

    Executive Vice President for Operations and Chief Financial Officer

    President