This policy was a part of the former UPS Policy set that was integrated into the System Administrative Policy set. It applies to all University of Wisconsin institutions except for UW-Madison. For UW-Madison’s policies, please see the Human Resource Design Policies website.
Original Issuance Date: July 1, 2015
Last Revision Date: January 5, 2023
1. Policy Purpose
The purpose of this policy is to outline parameters for setting and adjusting salaries of UW System employees. These policies support the compensation philosophy described below and apply regardless of the source of funds supporting the salaries.
This policy does not address procedures to be used when implementing a Regent Pay Plan (see SYS 1278, UW System Pay Plan Distribution Framework for University Workforce).
2. Responsible UW System Officer
Associate Vice President and Chief Human Resources Officer
This policy provides the compensation administration policy framework for the university workforce except for employees at UW-Madison.
Wis. Stat. § 16.417(2)(f)2 exempts an individual employed by the Board of Regents of the University of Wisconsin from the $12,000 limit on the amount a full-time employee may earn during the employment period. This exemption applies only to compensation received within the UW System.
Wis. Stat. § 36.09(1)(e) sets forth the basic statutory authority of the Regents to set salaries.
Wis. Stat. § 36.115(2) requires the Board of Regents to develop a personnel system that is separate and distinct from the personnel system under Wis. Stat. Chapter 230.
Effective July 1, 2015, under Wis. Stat § 36.115(3m), the Board of Regents is authorized to set the salary ranges for the System President, Senior Vice Presidents, Vice Presidents, the Chancellors, and Vice Chancellors (Provosts).
Effective July 1, 2015, Wis. Stat § 36.115 also authorizes Board of Regents to assign non-deputy Vice Chancellors, and other officers with modified chancellor and vice president titles to salary ranges that had previously been a requirement of Wis. Stat. § 20.923(5).
Wis. Stat. § 36.09(1)(h) directs the Board of Regents to allocate funds to the institutions giving consideration to the principle of equitable compensation for faculty and academic staff with comparable training, experience and responsibilities and recognizing the competitive ability to recruit and retain qualified faculty and academic staff.
Regent Policy Documents and Resolutions
From several Regent actions over the years, a basic salary administration framework has evolved in the area delineating authority and responsibility delegated by the Board to the System President and the Chancellors.
Regent Policy Document 20-28, Executive Salary Structure serves to fulfill the Regents’ obligations under Wis. Stat. § 36.115(3m) to set the salary ranges of the UW System President, Senior Vice Presidents, Vice Presidents, Chancellors and Vice Chancellors.
Regent Resolution #5980 (adopted December 6, 1991) affirms the delegated authority of the President to monitor and maintain the unclassified title and salary structure and affirms the responsibility of the System President to take any and all necessary actions to ensure consistent use of the title and salary structure among the institutions.
Regent Resolutions 8167 (adopted June 9, 2000); 9058 (adopted September 9, 2005); 9938 (adopted June 10, 2011); 9910 (adopted April 8, 2011); and 9950 (adopted July 15, 2011) that authorized additional delegations are discussed in more detail in the policy section of this document.
Effective July 1, 2015, the compensation policies and guidelines outlined in this operational policy are for all UW System employees. Please see SYS 1278, UW System Pay Plan Distribution Framework for University Workforce for pay plan details.
Please see SYS 1225, General Terms and Definitions for a list of general terms and definitions.
Definitions specific to this policy:
Institution base funds: Institutional funds that are part of an institution’s budget, not part of Board of Regents pay plan funds.
Compensatory time: Time off the job which is earned and accrued by an employee in lieu of immediate cash payment for overtime in accordance with FLSA.
Extraordinary Salary Range (ESR): An approved salary range that is greater than the assigned range for the title. An ESR can be either systemwide or institution specific. An ESR is associated with a specific job title (e.g., Market Research Analyst II). An ESR can apply to any faculty, academic staff, university staff, or limited appointee position, including temporary or permanent positions.
Fair Labor Standards Act (FLSA): Federal Law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
Overtime: Any hours worked over forty (40) in a work week by an FLSA non-exempt employee.
Premium rate: The regular hourly rate plus .5 times the regular rate paid the FLSA non-exempt employee.
Range spread: The percent difference from the midpoint of the range to the minimum and maximum.
Regular rate: The average hourly rate actually paid the employee as straight time pay for all hours worked in the workweek or work period, including all remuneration for employment paid to, or on behalf of, the employee, except any payments specifically excluded from the calculation of the regular rate under the FLSA and related federal regulations.
Work hours: Work time as directed by the appointing authority during which an employee must be on duty and/or at a prescribed place of work.
Range Minimum: The lowest salary that will be paid to individuals qualified to hold positions in the range.
Range Mid-Point: The salary that represents the middle of the range, i.e. the salary is equidistant to the minimum of the range and the maximum of the range.
Range Maximum: The highest salary that can be paid to individuals holding positions in a range. A salary above range maximum will be “red-circled” until adjustments to the salary structure bring it to within range. A range maximum can be exceeded if an extraordinary salary range is approved.
6. Policy Statement
UW System Compensation Philosophy
In order to fulfill its mission, the UW System shall maintain a comprehensive compensation program directed toward attracting, retaining and rewarding a qualified and diverse workforce. Employee compensation shall be externally competitive, internally equitable, and shall reward contribution, recognize quality performance, and encourage growth and development.
UW System Compensation Objectives
- Provide a comprehensive compensation package that includes salary and benefits.
- Recruit and retain a highly skilled and diverse workforce through a competitive salary package and reward them by providing opportunities to learn, grow, and develop professionally.
- Encourage and reward excellent performance by individual staff or teams by recognizing efforts that meet the mission of the individual UW institution through pay for performance and recognizing university service when it is a contributing factor to performance effectiveness.
- Encourage growth and development by providing for pay increases related to expanded duties and responsibilities and/or newly acquired skills and experiences.
- Provide flexibility appropriate to the dynamic challenges facing the university and to differences across the schools, colleges, and UW institutions.
- Promote fiscally responsible pay decisions and ensure compliance with applicable laws and statutory requirements.
- Ensure that all jobs of like responsibility and labor market conditions are paid within comparable pay ranges/grades based on an evaluation of each job and relevant market data; and individuals with comparable backgrounds (experience, skills, ability, and education) are hired at comparable pay for the same or a similar job.
- Assure that all employees at each UW System institution are fully informed of principles, goals, design, procedures, and relevant external market information used to set compensation.
- Review compensation practices as the workforce evolves over time to ensure that the intended objectives are met.
- Each UW institution has the responsibility for determining compensation and ensuring pay practices comply with applicable laws and statutory requirements and are consistent across the institution.
This policy is composed of the following sections:
- Compensation Categories
- General Salary Administration Guidelines
- Salary Adjustments Outside of the Board of Regents Approved Pay Plan
- Temporary Base Adjustments, Overtime, Overload Payments, and Summer Payments for Academic Year Appointments
- Additional Pay Components for FLSA Nonexempt Staff
- Pay Components Pertaining to Crafts Workers
- Miscellaneous Provisions
UW institutions may further define compensation parameters within the rules set by this policy to address institution-specific needs for any or all of the pay structure mechanisms as long as the parameters are communicated to employees and consistency of application is maintained. Each UW institution Chancellor shall be responsible for the consistent application of and compliance with this policy.
UW System Human Resources will monitor compensation practices throughout UW System to ensure compliance with this policy.
FIVE IMPORTANT NOTES:
Retroactive salary adjustments for personnel transactions are prohibited per Art. IV, § 26, Wisconsin Constitution. However, the institution may establish a personnel transaction policy that establishes an effective date based on the date that documented materials are received by an appointing authority or office.
Payment prior to work being performed is prohibited per Wis. Stat. § 109.03(1).
Student hourly rates are established by the institutions.
Unless an extraordinary salary range has been established, no salary rate may be set outside of the established salary range for the title assigned.
Multiple salary adjustments on same date (order of application)
Multiple salary adjustments effective on the same date will be applied in the following order:
- Change in Responsibilities with Change in Title (Promotion, Lateral or Demotion)
- Change in Unique Responsibilities with no Change in Title (permanent or temporary)
- Market/ Retention
- Merit/ Performance
- Raise to Pay Range minimum
- Raise to college or campus minimum*
- Pay plan
- Pay upon appointment
A. Compensation Categories
There are six broad compensation categories: A, B, C, D, E, and F. These categories define the compensation needs and practices of the seven employment categories described in SYS 1251, Designation of Positions.
- Compensation Category A
Compensation Category A is a salary grade structure composed of 21 salary ranges, each with a minimum and maximum dollar value. Academic Staff, University Staff, and Limited appointee employees are assigned to Category A unless specifically identified as being out of scope for this salary structure. This category’s work levels typically reflect both professional growth and assumption of increased levels of responsibility and organizational impact.The dollar values of the salary grades are based on market data and salary surveys with comparable positions of those at the University of Wisconsin to that in the external competitive market. The University’s salary ranges are primarily positioned around the 50th percentile of the appropriate comparison markets; the University reserves the right to use other percentiles (e.g., 75th percentile) as necessary. Additionally, the dollar values of the salary grades are reviewed and potentially revised by the biennial pay plan recommended by the Chancellor/Board of Regents and approved by the State of Wisconsin Joint Committee on Employment Relations. (See Title and Standard Job Description Library for salary grade information.)
- Compensation Category B
Compensation Category B refers to the salary minima of instructional academic and research job titles determined linked to faculty salary minima. Titles in this compensation category cover all academic disciplines. In the academic job market, these disciplines carry widely varying levels of compensation. Attempting to cover such a wide range of salary levels within salary range minima and maxima would result in range widths too large to be useful and relevant. As a result, only salary minimums are set for instructional and research Academic Staff titles. This situation directly parallels salary setting for Faculty (i.e., salary minimum but no maximum salaries). Therefore, salary setting should reflect the appropriate relationship to the rank average salary within the discipline, school, or college. (See Compensation Category B Instructional Academic Staff and Research Minimum Salaries.)
- Compensation Category C
In general, this compensation category is for specially defined or statutorily mandated positions. Although a salary grade structure may apply, salaries are determined on a case-by-case basis and are typically based on the rate that the person has as a Faculty member. Academic administrators, academic program directors, emeritus/emerita, military science Faculty, and other Academic Staff/Limited title groups are in this compensation category.
- Compensation Category D
Compensation Category D refers to salary grades for Faculty. These titles have only prescribed salary minimums due to the nature of the work assigned to these titles, which cover a gamut of disciplines. In the academic job market, they command widely varying levels of compensation. Attempting to cover such a diversity of industries and salaries within standard salary grade minimums and maximums would create salary grades whose widths would be too large to be useful and relevant. (See Compensation Category D Faculty Minimum Salaries.)This category also includes employees-in- training, student staff, and other special use title groups (these groups are also addressed in Employment Categories).
- Compensation Category E
Compensation Category E refers to the salary structure for senior/vice presidents and provosts/vice chancellors. The Board of Regents establishes the salary ranges (see Regent Policy 20-28). (See also Compensation Category E Executive Salary Ranges.)
- The Board of Regents determines the salary range for new senior/vice presidents and provosts/vice chancellors (deputy) as established in Regent Policy 20-28. The Board of Regents has delegated authority to the chancellor to set salaries at the time of hire within approved salary ranges.
- Vice Chancellor titles are assigned to UW System salary ranges as noted in Compensation Category E. The salary for an acting appointee must be placed within the salary range for the job title.
- Compensation Category F
Compensation Category F is the salary structure for Crafts Workers in the University Staff employee category. For additional information, please refer to UW System Administrative Policy 1238 (formerly GEN 21), Crafts Workers. (See Compensation Category F Crafts Workers/Trades Rates.)
B. General Salary Administration Guidelines
- Delegation of Personnel Transaction Authority
Pursuant to the actions of the Board of Regents, basic salary administration authority and responsibility has been delegated by the Board of Regents to the UW System President and the Chancellors. The Board of Regents authority includes:
- Set the salary ranges of the UW System President, Vice Presidents, Chancellors and Provosts/Vice Chancellors (deputy).
- Approve as appropriate the total compensation package for the UW System President and Chancellors.
- Approve the starting salary of Chancellors at the time of hire.
- Award salary increases for the UW System President and continuing Chancellors in conformance with the approved pay plan when salary increases are considered for UW System employees.
UW System President has the authority to:
- Award salary increases for continuing Vice Presidents, Provosts, and Vice Chancellors in conformance with the approved pay plan. This is a delegable duty which has been delegated to Chancellors since 2000.
- Set and approve the starting salaries of newly hired Provosts, Vice Chancellors, and Vice Presidents provided the salary is within the approved Board of Regents salary range. This is a delegable duty which has been delegated to Chancellors since 2000.
- Set the starting salary for an interim Chancellor appointment, after consultation with the Board of Regents President and Vice President. Board of Regents approval is required for interim appointments only when the salary is outside the established Board of Regents salary range.
- Monitor and maintain the title structure and for all UW System employees.
- Make a base adjustment up to a specified amount within six to nine months of the date of hire for senior executives.
- Assign officers with modified Chancellor and Vice President titles to salary ranges pursuant to the requirements of Wis. Stat. § 20.923(5). This is a delegable duty which has been delegated to Chancellors since 2000.
- Approve all institutional settlements involving the termination of a limited appointment.
Chancellors have the authority to:
- Establish institution-specific peer institutions for market salary comparisons.
- Approve personnel transactions and set salaries within the established salary ranges.
- Set and approve the starting salaries of new and interim Provosts and Vice Chancellors provided the salary is within the approved Board salary range.
- Approve Provosts and Vice Chancellors’ pay plan and base adjustments within the Board approved pay ranges.
- Establish extraordinary salary ranges when the salary range assigned to the title does not adequately address the market conditions and affects recruitment and retention needs.
- Approve increased compensation in the form of an overload payment in cases where a temporary assignment is undertaken at another UW System institution, or an individual is asked to assume additional short-term responsibilities.
- Approve the faculty salary when an administrator returns to a faculty position.
University Leadership has the authority to:
- Endorse the compensation program (compensation philosophy, job framework, compensation policies and guidelines, etc.) and model appropriate and fair salary decision making.
- Hold direct reports accountable for administering salaries within the structure design and guidelines in their areas of responsibility.
UW System Human Resources responsibility includes:
- Facilitate the development and maintenance of the compensation philosophy, job framework, compensation structure and administrative guidelines.
- Provide information and advice on market practices, trends, and analysis to leadership, human resources partners and managers.
- Collect and analyze market salary data and participate in compensation surveys.
- Inform and educate leaders, managers, and employees about compensation principles and best practices.
- Monitor compensation practices for legal compliance.
- Report salaries at or above 75% of the System President’s salary to the System President on a quarterly basis and to the Board on an annual basis.
Institution Human Resources responsibility includes:
- Maintain knowledge and understanding of the compensation structure and how it impacts employees.
- Inform and educate leaders, managers, and employees about compensation principles and best practices.
- Monitor compensation practices for legal compliance.
Managers responsibility includes:
- Support the compensation program and follow guidelines in making salary decisions.
- Consult with Human Resources to ensure alignment of salary administration practices within guidelines.
- Extraordinary Salary Ranges
Although the salary range structure is designed to accommodate general market demands, there are significant market conditions for certain positions that require an extraordinary salary range (ESR) in order to address documented recruitment and retention needs. Regent Resolution #9950 (adopted July 15, 2011) provides UW Chancellors the delegated authority to establish ESRs when the salary range assigned to the title does not adequately address the market conditions and affects recruitment and retention needs. The ESR should be based on salaries paid for comparable positions in the external market. For further instruction on the process for creating an ESR, see SYS 1277.A, Compensation: Extraordinary Salary Ranges.
- Salary upon Hire/Placement: Faculty, Limited, Academic Staff and University Staff
- Positions with Salary Grade Minimums and Maximums
- Pay upon appointment for an employee in Category A will be set between the minimum and the maximum of the established salary grade for the job title assigned in consultation with the Salary Administration Guidelines.
- For any salary or title change, the resulting salary rate must be equal to or greater than the salary range minimum for the new title and shall not exceed the salary range maximum.
- When an employee accepts or is placed in a title assigned to a lower salary grade, the new salary shall not exceed the new salary range maximum.
- In those cases, in which an employee’s salary is at or above the established salary maximum for the title, the employee is not eligible for further base salary increases until the grade maximum surpasses the employee’s base salary. However, the employee is eligible for bonus (lump sum) payments if otherwise eligible.
- When a new salary grade/range minimum is established, the salaries of all employees under the new minimum will be increased to the new minimum.
- Positions with Salary Grade Minimums Only
- Despite not having a salary range maximum, compensation market analysis should be conducted, and salary ranges should be established for these positions on an individual basis in order to ensure placement within the range.
- Positions with Salary Grade Minimums and Maximums
- Faculty Member Movement to and from a Director-Level and above non-Faculty Administrative Position
- Faculty members who assume an administrative position for more than 50% time must be assigned to the appropriate administrative salary range for that position, and the salary for such appointment shall be within the salary range limits, if applicable.
- As directed by Regent Resolution #9058 (adopted September 9, 2005) when a ranked faculty member leaves an administrative limited appointment to return to his/her faculty position, the faculty member will be compensated at a salary rate consistent with other faculty members of the same rank in the department when considering years of service, previous salary as a faculty member, length of time served as an administrator and other factors normally considered when setting faculty salaries. Regent Resolution #9950 (adopted July 15, 2011) delegates to the UW Chancellors the authority to approve the faculty salary when an administrator returns to a faculty position.
- Regent Resolution #9058 (adopted September 9, 2005) further directs that limited appointees returning to the faculty from an administrative position, who are provided with transition time for teaching preparation must develop the equivalent of a sabbatical proposal clearly outlining the work to be accomplished during the transition time and a report of work accomplished during the transition period. The transition period should be no longer than one academic semester unless the person has served in a limited position for five or more years, whereby two academic semesters may be allowed. UW System approval of the transition plan is not required. However, the transition plan and subsequent report of work accomplished should be maintained in the institution’s files and be available if there should be an audit of compliance with this policy.
- Academic Staff Movement to and from a Limited Appointment
An academic staff member who assumed a limited appointment for 50% or more time must be assigned to the appropriate administrative salary range for that position, and the salary for such appointment shall be within the salary range limits of the assigned position. When an academic staff member leaves a limited position and the concurrent academic staff appointment does not specify a title and salary range, the title and salary range shall be determined based on the functions to be performed in the academic staff appointment, and the salary upon return to an academic staff position shall be established within the salary range limits.
- Acting or Interim Appointment Salaries for Director-level and above
- Administrators serve at the executive/policy making level, so it is important for an acting appointee to maintain leadership continuity during a temporary leave of absence or during the search and screen process. The salary offered to an individual to serve on an acting or interim basis can be an important factor in securing the temporary services of a highly qualified person.
- The following human resource compensation principles should be considered in setting the salary for acting appointments:
- An evaluation should be made to ensure that, to the extent possible, the salary offered for an acting assignment does not create inequities with comparable positions both within and between institutions in the UW System.
- When a permanent appointment is made, the acting or interim appointee can expect to be returned to his/her former position at a salary consistent with the salary the individual had before assuming the acting appointment, plus any increases that the individual would have received but for accepting the acting responsibility.
- University Staff Temporary Appointment
- University staff temporary employees must be paid at least the state or federal minimum wage, whichever is greater, unless a lower wage is authorized pursuant to Section 14 of the Fair Labor Standards Act and Wis. Stat. § 104.07. The salary of a university staff temporary employee may not exceed the established pay range maxima for the title assigned. The rate determination should take into consideration the pay of similar university staff who have an expectation of continued employment.
- University staff temporary employees are all nonexempt from the FLSA and must be paid for hours worked and must be paid at the premium rate for all hours worked over 40 in a workweek (or 80 hours in a pay period for law enforcement officers). Compensatory time credits may not be provided in lieu of overtime payment to a university staff temporary employee.
- University staff temporary employees may receive the supplemental pay identified in the Additional Pay Components for FLSA Nonexempt Staff section of this policy.See SYS 1256, University Staff Temporary & Project Employees for more information.
C. Salary Adjustments Outside of the State Approved Pay Plan
As outlined Wis. Stat. § 36.09(1)(j), the Board of Regents may not increase the salaries of employees unless the salary increase conforms to the proposal as approved under Wis. Stat. § 230.12(3)(e). However, the Board may authorize the use of base funds to recognize (a) merit, (b) correct salary inequities, (c) fund job reclassifications and promotions, and (d) recognize competitive factors.
It is critical that each UW institution have published guidelines on granting salary adjustments outside of the Board of Regents approved pay plan. Each UW Chancellor is responsible for seeking input from the appropriate governance groups on pay plan recommendations. Institution base funds may be used to increase salaries beyond the approved pay plan for a number of reasons including, but not limited to, those identified below. The adjustments may be either base-building or lump sum.
Employees in a certified bargaining unit are not eligible to receive state approved pay plan increases but are eligible to receive lump sum payments outside of the state approved pay plan.
- Pay Progression Within Range
Institution base funds may be used to increase salaries within a salary range based upon time in job and criteria established by each institution pursuant to a written guideline.
- Major Changes in Duties Resulting in Title Change
Institution base funds may be used for salary increases that accompany major changes in duties that result in a title change.
- Major Changes in Duties Resulting in Within-Range Salary Change
Institution base funds may be used for salary increases that accompany major changes in duties in cases where the current title remains appropriate.
- Response to Competitive Factors
Institution base funds may be used to support salary increases to retain faculty, academic staff, university staff and limited appointees.
- Remedy Inequitable Compensation
Institution base funds may be used to correct salary inequities via equity or parity adjustments in documented, individual and group cases.
- Institution base funds may be used to support salary increases related to employee recognition for meritorious performance.
- Merit criteria/factors to consider include but are not limited to:
- Length or frequency of the outstanding performance.
- Overall significance or importance of the employee’s work products to the goals and mission of the organization.
- Regularity with which the outstanding performance or unique contribution is demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project).
- Employee has new permanent job duties and/or responsibilities of growing importance to the institution that have been either newly assigned or were the evolution of their originally assigned functions, and are of greater scope, impact and/or complexity compared to previous functions.
- Whether the employee has acquired additional competencies (e.g., educational attainment, certifications, etc.), which are both specialized and critical in carrying out the permanent functions of the position.
- For guidance on minimum requirements for merit pay, see SYS 1277.B, Compensation: Merit Pay. Crafts Workers will be eligible for lump sum merit increases, only.
Institution base funds may be used to support lump sum payments related to the recruitment of certain employees.
Recruitment bonuses are only available if the applicant/employee has no full-time UWS service in the previous three years. Previous employment as a student hourly, employee in training, or student assistant does not exclude one from eligibility.For information on minimum requirements for recruitment bonus, see SYS 1277.C, Compensation: Recruitment Bonus.
D. Temporary Base Salary Adjustments, Overtime, Overload Payments, and Summer Payments for Academic Year Appointees
Situations exist for which payment above the ordinary rate is appropriate or mandated by law.
- Temporary Base Salary Adjustments
- Temporary base salary adjustments may be utilized in cases where an employee assumes temporary responsibilities. The level of the base salary adjustment should be appropriate for the new assignment. Temporary base salary adjustments are not overload payments.
- Additionally, a temporary base salary adjustment may be used as a mechanism to acknowledge a special qualification or job attribute that is not permanent or is seasonal. For example, a police officer may receive a temporary base salary adjustment for horseback duties since these would be performed on a seasonal basis. It is expected that in most cases compensation for a special qualification or job attribute would be on a permanent basis and would, therefore, be addressed as an adjustment meeting the criteria for Merit Pay, as outlined in UW System Administrative Procedure 1277.B, Compensation: Merit Pay.
- Faculty, academic staff, university staff and limited appointees are eligible for temporary adjustments to their base salaries.
- Overtime for FLSA Nonexempt Staff
- Designation of employees as exempt or nonexempt will be done by the UW institution and will be in accordance with the FLSA. Designation of an employee’s FLSA status is based an employee’s primary duty. Employees with multiple jobs may have only one FLSA status.
- Except for law enforcement officers, FLSA nonexempt employees must be paid at a premium rate or receive compensatory time credits at a rate of 1.5 hours per hour worked for each hour worked in excess of 40 hours in a workweek. Hours worked do not include hours of paid leave. Law enforcement officers must be paid at a premium rate or receive compensatory time credits at a rate of 1.5 hours per hour worked, for each hour worked in excess of 80 hours in a 2-week pay period.
- Payment of overtime at a premium rate shall be paid in addition to the premium rate paid for work performed on a legal holiday during the same workweek (or pay period in the case of law enforcement officers).
- Compensatory Time in Lieu of Overtime Payment
- Unless agreed to otherwise, the UW institution has the authority to decide whether to provide compensatory time credits as payment for overtime rather than cash payment.
- UW System employers will have discretion to approve scheduled use of compensatory time. The FLSA, however, provides that employees may be allowed to take accrued compensatory time off within a reasonable period after the leave is requested if the use does not “unduly disrupt” the operations of the public employer. It is not considered “unduly disruptive” if the use of compensatory time by one employee would create overtime for another employee.
- Employees will be allowed to accumulate up to 80 hours of compensatory time. Compensatory time accrues at one and one-half times for each hour worked over 40 in a week. Any overtime hours worked which if compensated for in compensatory time would result in that limit being exceeded must be paid in cash at the premium rate.
- Any compensatory time earned in a calendar year which is unused by April 30 of the following calendar year will be converted to cash payment and included in the earnings for the pay period that includes May 1.
- Overload Payments for Faculty, Academic Staff, FLSA Exempt University Staff, and Limited Appointee
Effective July 1, 2013 Wis. Stat. § 16.417(2)(f) states that the $12,000 overload cap does not apply to individuals employed by the UW System but only with respect to compensation received within the System. The $12,000 cap continues to apply for compensation earned by a UW System employee at any other state agency, although it does not apply to compensation earned at private organizations.The salary received by full-time faculty, academic staff, FLSA exempt university staff, and limited appointees is considered to be full compensation for all work during the period of appointment. Faculty, academic staff, FLSA exempt university staff and limited appointees exempt from the provisions of the Fair Labor Standards Act are expected to expend the total effort necessary to complete their assignments without additional compensation. The chancellor or designee may approve increased compensation in the form of an overload payment in cases where a temporary assignment is undertaken at another UW System institution, or an individual is asked to assume additional short-term responsibilities.In general, options such as adjustments in the employee’s other duties in order to release time to meet new responsibilities; a temporary base adjustment; or a purchase-of-load arrangement in which funds are transferred into an employee’s department or unit as a purchase of institutional time from the department or unit should be considered before overload payments are granted.However, there are instances in which asking an employee to do more than his/her appointment requires is the only viable alternative and overload compensation is appropriate. There may also be other situations in which the individual is asked to assume, on a temporary basis, different duties and responsibilities within the full-time appointment period such that the base salary for performing those functions needs to be examined. (See below for temporary base salary adjustments.) Note: An overload is not permissible for an employee who is paid in some part on a federal grant unless it is agreed upon in the grant proposal document approved by the granting agency, or unless the granting agency approves the specific overload circumstance in writing. (OMB circular A-21 J.10.d(1),)Institutions are encouraged to develop institution specific overload policies within the bounds of this UW System policy.Overloads
- Overload payments may be made where with the consent of the employee, substantial additional work requirements are added to the existing duties of a full-time employee creating a workload in excess of 100% of the employee’s time and the performance of these additional duties is unusual, short-time or nonrecurring in nature.
- Overload payments may also be made where a full-time employee of one UW System institution accepts an institution-approved part-time appointment to perform duties at another UW System institution in addition to his/her full-time position (SYS 324, Inter-Institutional Financial Transactions details the procedures for payment between institutions).
- If a staff member is not full-time, additional compensation is not considered an overload.
- Overload payments must be approved, in advance, by the Chancellor or designee.
- Overload compensation may not exceed the higher of either 20 percent of the employee’s academic (c-basis/9 month) salary base or annual (a-basis/12 month) salary base or $18,000 unless the chancellor or designee determines that good cause exists to exceed this threshold and issues an exception in writing.
- Overload maxima are calculated on a fiscal year basis.
- Summer compensation (see SYS 230, Salary & Fringe Benefit Calculations) for the calculation of summer salary for academic year (c-basis/9-month) employees is not considered an overload for the purposes of this policy.
- Summer Payments for Academic Year Appointments
Each UW Institution may have staff that are on an academic year contract but required to work during the summer. Staff on academic year contracts are compensated for summer session assignments at the rate up to the equivalent 4.5 biweekly pay periods (9 weeks) of the previous academic year’s budgeted biweekly pay rate for a full-time work load of an eight-week summer session. All summer payments, whether summer session and/or summer service are counted in the 4.5 biweekly pay period rule. Compensation received in a summer period may not in aggregate exceed 4.5 biweekly pay periods (9 weeks) of the previous academic year’s budgeted biweekly pay rate unless explicit exception is granted by the Chancellor or designee, regardless of the sources of funds. See SYS 230, Salary & Fringe Benefit Calculations for more information.
E. Additional Pay Components for FLSA Nonexempt Staff
There are pay components for which any FLSA nonexempt staff are eligible. These pay components are consistent with the nature of the hourly salary structure of FLSA nonexempt employees.
- Standby Pay
When an employee is required by the institution’s administrators to be available for work and able to report to work in less than one hour, the employee will receive $2.25 for each hour in standby status.
- Call-Back/Call-In Pay
A minimum of two hours pay is guaranteed when an employee is called back for duty or called in on the employee’s day off.
- Calls at Home
If the Employer contacts the employee at home for the purpose of discussing job-related business, the employee shall be credited with work time for all such calls. In no case shall the employee receive less than a single one-half (1/2) hour credit per day for such calls under this section.
- For purposes of this section, examples of job-related business calls include:
- Calls regarding specific patient treatment procedures,
- Questions regarding operation of equipment,
- Clarification of instructions,
- Repair procedures.
- Examples of non-job-related business calls include:
- Calls made to call an employee back to work,
- Availability for overtime,
- Scheduling changes.
- For purposes of this section, examples of job-related business calls include:
- Additional Pay Components for University Staff and nonexempt Academic Staff holding a nonexempt Job Title
These components are only available if a supervisor has scheduled an employee to work on qualifying days or during qualifying hours. Employees who determine their own work schedule and schedule themselves into these qualifying days/times are not eligible for these differentials or premiums.
- Night Differential
Forty-five cents ($0.45) per hour for all hours worked between the hours of 6:00 p.m. and 6:00 a.m.
- Weekend Differential
Sixty cents ($0.60) per hour for all weekend hours worked (i.e., work hours between the hours of 12:01 a.m. on Saturday and 12:00 midnight on Sunday).
- Night Differential
- Legal Holiday Premium
Compensatory time off or payment at the premium rate will be granted for hours worked on days identified as legal holidays in SYS 1211, Personal Holiday and Legal Holiday Administration.
F. Pay Components Pertaining to Craft Workers
See SYS 1238, Craft Workers for the compensation structure for Crafts Workers.
G. Miscellaneous Provisions
This section contains provisions for payment, which are outside the parameters of the other sections.
- Leave Payout
Upon termination, employee leave balances will be reviewed, and eligible leave balances will be converted to cash payment to be included in the employee’s final regular paycheck or a supplemental paycheck. The guidelines for this payout are found in SYS 1210, Vacation, Paid Leave Banks, and Vacation Cash Payouts, and SYS 1211, Personal Holiday and Legal Holiday Administration.
- Reimbursement for Damaged Personal Articles
The UW institution may reimburse its employees for the cost of repairing or replacing articles of clothing, watches, or eye glasses damaged in the line of duty if such damage is not caused by employee carelessness or normal wear and tear resulting from the type of work performed by the employee. Payments under this section are subject to the approval of the Chancellor (or designee) and are likely taxable.
- Determination of Value
The appointing authority shall determine the value of damaged personal articles at the time damage occurs. If the appointing authority determines that the personal articles are damaged beyond repair, the reimbursement amount shall not exceed the actual replacement value, less depreciation, of the damaged articles.
- Reimbursement Limitations
The reimbursement amount shall not exceed $100.00 for any one incident except that reimbursement for watches shall not exceed $75.00.These provisions shall not apply to articles where the actual replacement value, less depreciation, or repair cost is less than $10.00.
- Determination of Value
- Safety Equipment
Employees shall be reimbursed, in accordance with SYS 1230, Workplace Safety.
- Leave Payout
7. Related Documents
SYS 1256, University Staff Temporary & Project Appointments
SYS 1277.A, Compensation: Extraordinary Salary Range
SYS 1277.B, Compensation: Merit Pay
SYS 1277.C, Compensation: Recruitment Bonus
SYS 1278, UW System Pay Plan Distribution Framework for University Workforce
Practice Directive Gen G: Inter-Institutional Financial Transactions
8. Policy History
Revision 5: January 5, 2023
Revision 4: January 31, 2022
Revision 3: December 30, 2019
Revision 2: April 2, 2018
Revision 1: February 14, 2017
Original Issuance Date: April 10, 2015
9. Scheduled Review