Payroll & Compensation

Complete Employee Policy Manual


IMPROPER PAYROLL DEDUCTIONS

1.0 The University of Nebraska shall apply the following standards prohibiting improper payroll deductions.
1.1 The new "Fair Pay" regulations of the Federal Labor Standards Act (FLSA) effective August 23, 2004, prohibit the University from making improper payroll deductions from an employee's pay. To comply with the provisions of the Act the University will take the appropriate actions for all improper payroll deductions.
2.0 Process
2.1 An employee's salary is intended to cover all hours worked, and the University intends to pay employees, subject to the provisions of the Act, and will not make deductions from an employee’s salary that are prohibited under FLSA. If an employee believes their salary includes improper deductions, or errors, or their salary is incorrect, based on wages earned, they should immediately report the incident to the payroll office or human resources division.
2.2 The payroll office or human resources division will conduct a prompt review, and if appropriate, remedy any improper deduction, payroll error, or incorrect paychecks during the next regularly scheduled pay period/cycle. In addition, remedial actions will be taken to prevent the occurrence of the same or similar improper deductions in the future.
2.3 Employees who register a complaint alleging improper deductions from their salary shall not be subject to disciplinary or other adverse action as a result of making a complaint. Each campus will designate individuals within the human resources division or payroll office to assist employees with their pay issues or inaccuracies.
2.4 Questions regarding this policy should be directed to the Human Resources Department/Payroll Administration offices.

OVERTIME

1.0 All employees except those exempted by Section 81-117 of Revised Statutes, 1943, and except as provided below, who are required to work in excess of forty (40) hours in any work week shall be paid at a rate of one and one-half (1 1/2) times their regular hourly rate or monthly rate prorated on an hourly basis for each hour worked in excess of forty (40) in any work week.
1.1 Agricultural employees shall be paid overtime compensation for hours worked in excess of fifty (50) in any work week.
1.2 Employees working within organized segments of the University which are primarily engaged in the care of persons residing on the premises who are sick, aged, or mentally ill or defective shall be paid overtime for hours worked in excess of eight (8) per day or eighty (80) per fourteen consecutive calendar days.
1.3 Compensatory time off may be granted in lieu of overtime compensation, subject to the prior approval of the employee’s supervisor. Compensatory time-off will be awarded at the rate of one and one-half hours off for each overtime hour worked.
1.3.1 In general, employees may not accrue more than 60 hours of compensatory time off (120 hours in the case of employees involved in public safety activities or seasonal work). Employees who accrue more than 60 (or 120) hours of compensatory time off shall be paid for additional overtime hours as provided in paragraph 1.0.
1.3.2 Employees who have requested to use accrued compensatory time off shall be permitted to use such time within a reasonable period after making such request if the use of the compensatory time off does not unduly disrupt the operation of the department.
1.3.3 All accumulated compensatory time off must be taken (or paid) prior to the receipt of a promotional salary increase or any type of salary decrease on the part of the employee.
1.3.4 Employees who terminate employment shall be paid for accrued compensatory time off as provided in paragraph 1.0.
1.3.5 Records on accumulated but unused compensatory time off shall be kept as part of the regular time reporting system.
2.0 The payment of overtime compensation shall not apply to managerial-professional employees that are classified exempt according to the Fair Labor Standards act criterion of:
  • professional, executive, or administrative in nature, and
  • by custom in business, industry and other institutions of higher education
2.1 However, positions classified exempt from overtime may require an individual to work extra and irregular hours.
2.2 Acceptance of such position constitutes the employee's acknowledgment that such requirement is a part of an obligation to the University of Nebraska as an employee.

SALARY ADMINISTRATION (NU VALUES)

1.0 Introduction
1.1 The salary administration policy of the University of Nebraska shall be applicable to all regular University of Nebraska Office/ Service and Managerial/Professional positions. The purpose of the NU Values compensation program is to provide effective, equitable, and market relevant rates of compensation to the incumbents of Office/ Service and Managerial/Professional positions. The program will identify salary levels needed to be sufficiently competitive in order to attract and retain highly qualified employees.
2.0 Authorities and Responsibilities
2.1 The Vice President for Business and Finance, University Administration, with the advice and consultation of the Council of Business Officers, shall be responsible for the maintenance and revision of the University-wide NU Values.
2.2 The University Administration Director of Human Resources shall coordinate the administration of the NU Values Program to include conducting an annual salary survey to determine appropriate salary bands for the NU Values Program.
2.3 Revisions or amendments to the NU Values Program to include but not limited to Family Composition, Salary Bands, Zone determinations, Market Impact, and Program Training, shall be recommended by University Administration's Director of Human Resources, to the Vice President of Business and Finance with the consultation of the campus Human Resources Directors, at least annually. Any revisions or amendments to the NU Values Salary Structure will be reviewed by the campus Budget Officers as to the fiscal impact.
2.4 The Human Resources Directors shall be responsible for the day-to-day administration of the NU Values program at the campus level.
3.0 NU Values Salary Structure
3.1 The University-wide NU Values salary structure within the Job Families for Office/Service and Managerial/Professional staff shall consist of a prescribed set of salary bands and zones with minimum and maximum rates.
4.0 Administration of the NU Values Program
4.1 No employee shall receive a salary that is less than the minimum rate or greater than the maximum rate of the Job Family Zone to which their position has been allocated unless specifically authorized by the appropriate Administrative Office. Appropriate Administrative Office is defined as Chancellor, Dean, Vice Chancellor or the designee of said offices.
4.1.1 The hiring authority will be responsible for determining the starting salary for a new University employee. They are encouraged to utilize the criteria prescribed in the NU Values Program including, but not limited to:
  • Market relevance
  • Other University employee salaries
  • Competencies of the new hire
  • Fiscal resources available
4.2 When a campus Human Resources Director finds that economic or employment conditions make recruitment of qualified applicants within a Job Family Zone difficult, the Council of Business Officers may, subject to budgetary limitations, authorize maximum rate adjustments of a Job Family Zone.
4.2.1 Salary surveys shall be utilized in relevant labor markets. The University of Nebraska labor market is defined as an area of national, regional, or local scope encompassing a competitive market or relevant employer in which employees are either gained or lost.
4.2.1.1 Salary surveys shall be prepared at least annually under the direction of the University Administration Human Resources Director. The survey will be used in the NU Values program as the basis to determine market relevance, per section 4.1.1, to justify request for salary increases of Office/Service and Managerial/Professional employees and to determine the allocation of salary increase funding to ensure equity in financial support.
4.2.2 Employees who are employed in a market-impacted position may have their rate of pay adjusted to the newly established range.
4.3 Administrative Changes in Salary
4.3.1 Advancement within the same Job Family Zone may occur because of the assignment and/or performance of additional duties within the same scope of their current position. Salary increases within a zone may warrant an increase in pay up to 10%. Increases of more than 10% require prior approval from the campus Human Resources Director.
4.3.2 Promotion to a higher zone in the same Job Family may occur when an employee accepts or is re-assigned to a position that is in a higher zone. Salary increases for promotions may warrant an increase in pay up to 20%. Increases of more than 20% require prior approval from the campus Human Resources Director.
4.3.3 Salary increases for purposes described in 4.3.1 and 4.3.2 or 5.0 may not exceed 2 occurrences in a fiscal year without prior approval from the campus Human Resources Director. Salary increases based on legislative appropriations and action by the Board of Regents, normally given on July 1 each year, are not included in these two occurrences.
4.3.4 A Transfer occurs when an employee accepts a position in the same Job Family and Zone in a different Organizational Unit. Employees who transfer shall be treated as a new hire for pay purposes.
4.3.5 A Voluntary Reduction occurs when an employee accepts or requests to be placed in a lower zone within the same Job Family. Voluntary reductions may require a pay reduction. Some circumstances, for example the rate of pay for other employees in the department, may be considered as reasons for a decrease in pay.
4.3.6 Demotions are corrective actions or disciplinary reductions in an employee's job assignment or pay. In the case of a demotion for cause, a decrease in the employee's pay is generally made. Organizational units must receive Human Resources approval before taking any disciplinary actions that affect an employee's compensation or employment status.
5.0 Performance Increases
5.1 Employees may be granted increases in salary for performance. An employee must have worked in the same Job Family and Zone for at least six (6) months in order to be eligible for a performance increase. Performance increases shall be treated according to Sections 4.3.3 and 5.1 through 5.4. The total amount of performance increases given to an employee per year may not be greater than ten (10) percent.
5.2 All performance increases shall be supported by written evidence of the employee's performance, which is on file in the employee's HR/Personnel file.
5.3 Consistent with Executive Policy, performance increases shall only be granted on January 1 and July 1, if sufficient funds for such increases are available.
5.4 Performance increases granted under Section 5.0 are considered to be separate from any increase pursuant to the policies governing annual increases generated by legislative appropriations.
6.0 Other Salary Adjustments
6.1 Adjustments in salary may be made to address factors other than those listed in 4.3.1, 4.3.2 and 5.0. Some circumstances, for example to recruit or retain an employee as a result of an offer by another employer, may be considered as reasons for an increase in pay. Salary adjustments of this nature may not exceed the established zone and require prior approval from the campus Human Resources Director.
7.0 Appeal Procedures
7.1 If there is a disagreement regarding the job family/zone assignment of a position, a request for additional review may be made by contacting your campus HR office. Decisions regarding job family and zone assignment may not be appealed through the formal grievance process.

SALARY TERMINATION UPON DEATH

1.0 The approach described below is the established guideline for Managerial/Professional and Office/Service staff, concurrent with the procedures outlined in the Board of Regents Bylaws
2.0 Upon Death, the salary of a full-time academic-administrative staff member shall terminate at the end of the month in which the death occurs. Provided, however, that this provision in no way abrogates the right to receive salary earned, but not yet paid because of the method of prorating academic-year salaried over a 12-month period.
3.0 Consequently, upon Death
3.1 Members of the Managerial and Professional staff shall have their salary terminate at the end of the month in which the death occurs.
3.2 Members of the Office and Service staff shall have their pay terminate at the end of the two-week pay period in which the death occurs.
4.0 It is the responsibility of each campus Human Resource Office to process salary terminations and payout upon death according to the above guidelines.

SHIFT DIFFERENTIAL PAY

1.0 A shift differential of ten (10) percent of base rate may be paid to eligible employees scheduled to work on the evening or night shift. This differential is intended to provide additional compensation for working during a generally less desirable time period.
1.1 Staff nurses on the third shift may receive shift differential up to 15 (fifteen) percent.
2.0 A shift differential shall not be considered part of an annual salary rate or hourly rate; but shall be subject to federal and state deductions.
3.0 Only those employees eligible for overtime compensation are eligible to receive a shift differential (see Overtime Compensation policy).
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