Compensation Reference Sheet - Parameters and Specific Guidelines for Processing (1).xlsx

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2	Compensation Reference Sheet - Parameters and Specific Guidelines for Processing
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4	Category	Transaction Type	Employee Group	Criteria	Parameters for Processing	Specific Guidelines for Processing	Wage Theft Notification

5	Changes to Base Pay	Annual Merit Increases	Civil Service, P&A, Faculty	To be eligible for a merit increase, employee must have been hired or transferred into their position prior to January 1 of the fiscal year.	Acceptable to process as long as the increase % is less than 5% more than the amount of the overall merit increase pool for that year. I.e. Merit increase pool was 4%, increases less than 9% would be able to be processed. If the increase is greater than this amount, consult Compensation COE.	New rate fits within new range: WFDM to enter change (or mass update completed if for a group) Use action/reason code PAY/MER. Current rate below new range minimum: Use action/reason code PAY/MAR to bring the rate to the new minimum first. Then apply the merit increase/percentage second. New rate above range maximum: Bring employee’s pay to max using code PAY/MER and provide remaining amount in a lump sum using pay code NLM (Non-recurring Lump Sum). Note: some college/units have requested and received an exception to pay certain employees below minimum. Check with Compensation COE.	Yes
6	Changes to Base Pay	Annual Increase	Union	Following contract settlement or determined date for scales to increase, all employees covered by the contract are moved to the new step scale rates.	ER/LR needs to verify that the scales are aligned with contract.	Union Contracts	N/A
7	Changes to Base Pay	Step Increase	Union	Employee meets criteria delineated in contract for movement up the scale.	New rate must be consistent with the next rung on the step scale.	PeopleSoft will automatically adjust if AFSCME - Technical, Clerical, or Healthcare employee. Teamsters increases will come via TDX and should be verified to be accurate prior to processing.	N/A
8	Changes to Base Pay	Market Adjustment	Civil Service, P&A, Faculty	Includes adjustments related to internal or external equity as well as those related to the SERC process on the Twin Cities campus.	Acceptable to process increase if it is less than or equal to 20%. Market adjustments greater than 20% must include Compensation COE consultation.	Enter increase using action/reason code PAY/MAR unless the increase will place wage above the range maximum.	Yes
9	Changes to Base Pay	Base Pay Augmentation (FAA, AAA)	Faculty	Faculty member takes on additional faculty/academic administration responsibilities. I.e. Becoming a dean or a department head. FAA: Faculty Administrative Augmentation A temporary increase to a faculty member’s tenure-guaranteed base salary during the time when the individual occupies one of the following positions: 9340FR – Leader with Faculty Rank, 9360 – Chair with Faculty Rank, 9361 – Head with Faculty Rank, 9362 – Director with Faculty Rank. AAA: Academic Administrative Augmentation A temporary increase to an employee’s base salary during the time when the individual assumes administrative responsibilities when the individual occupies a position in the IPEDS 1 (Executive/Admin/Managerial) category.	New employee record needs to be set up for the FAA/AAA augmentation using action/reason code Hire/Additional Job.	Note: Record may have a combination of BASE and FAA/AAA or just FAA/AAA.	Yes
10	Changes to Base Pay	Addition of Regents Professorship	Faculty	Faculty member must have received a Regents Professor award.	Job code should be changed to 9410.	Job Data: insert new row, position is refreshed to pull in 9410 job code. Compensation page/Pay Components section: insert new row, enter Rate Code of REGENT and comp rate. Click Calculate Compensation to recalculate the bi-weekly rate.	Yes
11	Changes to Base Pay	Retention Pay Increase	Civil Service, P&A, Faculty	I.e. Employee gets a job offer and notifies supervisor/manager either via a resignation or notification. If the unit allows for retention offers, manager would initiate a change.	Acceptable to process increase if it is less than 20%. Market adjustments greater than 20% must include Compensation COE consultation.	Enter pay rate increase using action/reason code PAY/RET.	Yes
12	Changes to Base Pay	Promotion to Next Faculty Rank	Faculty	Provost's office must approve the movement of faculty from Assistant -> Associate -> Full Professor.	Job code changed to appropriate new level, pay rate increased by at least the amount of the minimum faculty promotional increase guidelines.	Enter the salary change as part of the job reclassification using Job Reclassification/Job Reclassification action reason code if manually entered.	Yes
13	Changes to Base Pay	Reclassification	Civil Service, P&A Union	Must have an approved reclassification into new job code.	Salary increase must be at least the minimum amount set forth in the appropriate promotional increase guidelines for the employee group of the incumbent being reclassified.	Enter the salary change as part of the job reclassification using Job Reclassification/Job Reclassification action reason code if manually entered.	Yes
14	Changes to Base Pay	Increase in Increment	Medical or Law School Only	Adjustment to the INCR component of Institutional Base Salary (IBS).	INCR component of pay changed to new amount using PAY/ICR (once it is created).	Enter increment increase using action/reason code Pay Rate Change/Increment	Yes
15	Changes to Base Pay	Lateral Movement	Civil Service, P&A Union	Movement from one location to another within the University within the same job code or same job grade.	Compensation COE approval needed if the increase is greater than 10%, unless the person’s existing compa-ratio is below 0.78.	If the lateral movement is occurring as a result of an internal hiring process, use action reason code Transfer/Transfer. If the lateral movement is related to a reclassification, use Job Reclassification/Job Reclassification.	Yes
16	Additional Pay	Overload (OME)	Exempt	Payment made to an exempt employee for professional activities outside of standard/regular job duties usually paid by lump sum such as: advising, consulting, article writing, course development/revision, translations, teaching, lectures, service on a special task force/focus group, music lessons, performance fees, etc. Used when the additional work will result in hours that exceed 40 per week.	Enter an Additional Pay record using pay code OME.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
17	Additional Pay	Professional Activities (ART)	Exempt	Payment made to an exempt employee for professional duties outside of regular job duties for actions such as: advising, consulting, article writing, course development/revision, translations, music lessons, and performance fees, etc. Provided the payment is not for hours that will exceed 40 in any given week.	Enter an Additional Pay record using pay code ART.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
18	Additional Pay	Additional Instruction (EAX/DUC)	Faculty	Payment for providing instructional or other services for independent study, evening/weekend credit programs, non-credit programs, and continuing education. This is typically used to compensate adjunct or visiting faculty where they are paid a flat rate per course.	Enter an Additional Pay record using pay code EAX.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
19	Additional Pay	Augmentation for performing job duties outside of those in the assigned classification (AUG)	Civil Service, Union with REG pay	Payment for work duties that are at a higher level (out of class) than regular job duties. This code can only be used if the employee also has REG pay. Typically AUG is used for time periods up to 12 months with the option to extend based on contract or policy.	Enter an Additional Pay record using pay code AUG. Take pay to the minimum of salary range of the interim role (role that was vacated) OR 10% augmentation if existing salary falls within the range.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
20	Additional Pay	Incentive Pay (INV)	P&A, Civil Service, Faculty	Incentive payments that are pursuant to employment contracts or incentive plan documents.	Enter an Additional Pay record using pay code INV.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
21	Additional Pay	Non-Recurring Lump Sum (NLM)	P&A, Civil Service, Faculty	To be used only for payments to employees in lieu of base salary increase that would exceed the maximum of the respective pay range.	Enter an Additional Pay record using pay code NLM.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
22	Additional Pay	Outstanding Serv/Teach Award (OLE)	P&A, Civil Service, Faculty	Payment for outstanding employee performance or related service, available to both academic and non-academic staff in units with established procedures which are applied in a uniform and nondiscriminatory manner.	Enter an Additional Pay record using pay code OLE.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
23	Additional Pay	Special Bonus (SPB)	P&A, Civil Service, Faculty	Payment related to established University policy on bonus payments, employment contract or other bonus agreements.	Enter an Additional Pay record using pay code SPB.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
24	Additional Pay	Retention Bonus (RET)	P&A, Civil Service, Faculty	Incentive payments that are pursuant to employment contracts or documented retention agreements.	Compensation COE approval needed if retention bonus is greater than 20% of annual salary. Enter an Additional Pay record using pay code RET.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.	Yes
25	Additional Pay	Sign-on Bonus (SOB)	P&A, Civil Service, Faculty, Labor Represented if negotiated in contract	New employee hired with promise of a sign-on bonus to be paid.	Enter an Additional Pay record using pay code SOB.	Note: Send written communication to employee to satisfy Wage Theft notification requirements.
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