Compensation Resource Guide

Staff Employees

revised November 2008

Table of Contents
Overview ... The Big Picture Employment Value Proposition ... Total Compensation Philosophy .. Compensation Strategy. Compensation Structure Job descriptions.. Schedule of pay grades and ranges Updating the pay structure ............................................................ Job evaluation/reclassification ........ Employee Pay New hire guidelines ... Performance management ........................................................... Base pay increase guidelines ...... Red-circled employees ....................... Green-circled employees... Promotion, transfer and demotion....... One-time payments ..................................................... Fair Labor Standards Act.

Page Number
3 5 7 8 10 11 12 13 15 16 17 18 19 20 22 23

Compensation Resource Guide

Overview

The Tulane University Staff Compensation Resource Guide was developed to provide guidelines for compensation administration for staff employees at all campuses. All staff employees, regardless of temporary or regular status; regardless of full-or part-time status; and regardless of salary funding source, are covered by this Guide. Some exceptions exist where funding sources or other regulations dictate salary administration procedures for certain employees.

This Guide is dynamic, intentionally designed to be responsive to changes in the market affecting the assignment of job titles and classifications. Although Tulane intends to maintain formal compensation programs indefinitely, the University has the right to modify the Guide at any time.
Employees may access the Guide via the Compensation link on Tulanes WFMO homepage. If internet is inaccessible, employees may contact the Compensation department in WFMO at 865-5280.
The right of employees to be free from discrimination in their compensation is protected under several federal laws, the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, and Title I of the Americans with Disabilities Act of 1990.

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Overview (continued)

The Compensation Resource Guide is organized in a manner to acquaint you with the big picture first, and then to delve into the details of our compensation programs.

Employment Value Proposition

Description of how the total work experience at Tulane is superior to that at other organizations.

Compensation Philosophy

Articulates the goals of the compensation program and the role each element plays in the attraction, retention, recognition and development of our employees.

Compensation Strategy

Rules that guide the design, implementation and administration of an organizations compensation programs.

Compensation Structure
Job descriptions

Schedule of pay grades and ranges

Updating the pay schedule Job evaluation/reclassification

Specific tools and processes that help determine the value of a job to Tulane, and to ensure that jobs are paid fairly relative to one another and to the marketplace.

Employee Pay
New hire guidelines Performance management Base pay increase guidelines Red-circled employees Green-circled employees Promotion, transfer and demotion Call back pay One-time payments Compensation Resource Guide
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The processes and procedures that help determine how to fairly compensate, recognize and reward individuals throughout their career at Tulane.

Employment Value Proposition

Our Employment Value Proposition (EVP) is a description of how the total work experience at Tulane is superior to that at other organizations. It emphasizes the fact that there are many features other than pay that attract good people to the University. Following are comments made by employees about what makes the work experience at Tulane University unique.
1. Engagement I have a lot of pride in the University because of its involvement in the community and its community service requirement [for students]. I am proud of the role Tulane is playing in helping the community. People work at Tulane because of the Vision- Tulane does right for the City. Tulane is now inter-twined with the community. New Orleanians stop Tulane employees on the streets and thank them for their support. 2. Community We are a place that cares about employees. Tulane is a loyal community of people. Tulane has tolerance for unique needs, be they child-rearing or having an elder at home. We offer a forgiving environment. The catalyst to our pride was paying employees for the five months that we were closed. We proved that we are part of a family that cares. One of the biggest shocks I had was getting paid when I wasn't working. That did more for my morale than anything. It was unbelievable. We're a family. We come together if someone has a problem. We think of ways to pick each other up. There is camaraderie. We are a family. 3. A Sense of Place and Tradition I work here because of the rich heritage and tradition of Tulane University. The prestige, research and quality of the students keep me here. You have unlimited access to University life- culture, academics, sports, libraries, education, grounds, festivals, conferences. The Business Week ranking, the sports teams- I always email all of the positive Tulane stories to my friends. The kids here keep you feeling youthful. This is a nice physical environment, trees and greenery. The staff is hard-working, dedicated and very proud of the university proud to be Tulanians. There is a cachet in the community to say that you are working for Tulane. Tulane is an elite research institution. Administrative staff know and appreciate that. 4. Challenge and Growth You'll never be disappointed with your job's challenge at Tulane. It's never dull around here. Jobs here are exciting, complex and interesting. Most jobs here are very challenging and there is a broader variety of activity than at other organizations in the marketplace. I like the autonomy you have at Tulane. Tulane gives you the opportunity to work with great people from around the country. We have a very rich and diverse work environment. Tulane is a competitive place. We want to advance and do well, push to get ahead. But it's a healthy competition.

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Employment Value Proposition [continued]

The following Employment Value Proposition was developed based upon what employees today are saying about the work experience at Tulane. Contained within the value proposition are some of the reasons our people choose to commit themselves to the organization.

The Tulane University work experience can be set apart from others, by the unique combination of Engagement. Our employees are motivated by the difference they make at Tulane and in the greater communities of which the university is part. We will encourage you and support you to maximize your contribution to both. Community. You arent just a Tulane employee, you are a member of the Tulane community. You belong to an organization that understands that loyalty and commitment are two-way streets. A Sense of Place and Tradition. An environment of intellectual curiosity, learning and research, infused with the energy of campus life, will inspire you with endless opportunities to stimulate your life and mind. Challenge and Growth. The breadth of activity performed at Tulane University provides you with a wide range of opportunities to contribute. You have the opportunity to grow your job and to pursue new directions as you grow, in a dynamic organization that goes beyond traditional limitations.

Compensation Resource Guide

Total Compensation Philosophy

Tulane University has established a Total Compensation Philosophy to articulate the goals of its compensation program and the role each element plays in the attraction, retention, recognition and development of our employees. Our total compensation program is intended to encourage employees to perform at the highest level by acquiring superior skills and competencies, and understanding their role in the Universitys success. Guideposts Our Total Compensation Philosophy is shaped by the following guideposts. Understandable. The effectiveness of the total compensation program is dependent on manager and staff understanding and acceptance. We will commit to provide the necessary resources to design, communicate, simplify and administer the program to promote understanding and acceptance by all of our employees. Flexible. We will provide a mix of programs flexible enough to adjust to changing economic conditions and to employee needs. The base salary portion of total compensation will continue to be significant, and we will consider introducing variable pay elements in the future that will be tied to individual and University performance results. Equitable. Total compensation will be allocated to each individual based upon: 1) the expected contribution of the job to Tulane; 2) the individuals skills, abilities, competencies and results; and 3) the pay for comparable jobs in our recruiting markets. Career-driven. Our concept of career will have no rigidly defined starting or ending points. We will strive to be the type of organization where consistent superior performers can grow and develop for their entire working career. Goals and Outcomes The University will endeavor to use its total compensation programs to accomplish the following goals. Encourage and reward employees to exceed performance expectations. Pay each employee fairly in comparison to the pay for similar jobs in other peer organizations. Recognize the increasing work levels of employees who seek new responsibilities or who step up in understaffed situations. Provide employees at the lowest grade levels with a respectable living wage. Pay each employee fairly in comparison to the pay for similar jobs within Tulane. Link employee pay to the success of Tulane in achieving its mission.

Compensation Resource Guide

Compensation Strategy

While a well-defined Total Compensation Philosophy ensures that a compensation program supports an organizations mission, strategy, goals and culture, a compensation strategy is the more specific rules that guide the design, implementation and administration of an organizations compensation programs. Definition of Total Compensation The Universitys total compensation package is comprised of three elements: 1) base pay, 2) base pay increases and 3) benefits. The University will consider each element of total compensation, individually and collectively, so that each element receives its proper emphasis. 1. Base pay. Base pay is the fixed pay that employees can expect to earn on an hourly, weekly, monthly or annual basis. It is designed to provide each employee with reliable wages to ensure a standard of living commensurate with the incumbents duties and responsibilities within geographic and industry norms. Base pay will reflect: a) the expected contribution of the job to the University based upon current job requirements, b) competitive base pay information for similar jobs at peer organizations, and c) individual knowledge, skills and competencies that relate to success on the job. 2. Base pay increases. Base pay increases are designed to advance an employees base pay according to his/her growth and advancement at Tulane. A base pay increase is an indication that Tulane expects the employee to contribute at a higher level in the future. In the long run, four factors will influence an employees base pay increase. Change in job accountabilities. The supervisors assessment of changes in the scope, complexity and responsibility of an employees job over the course of the year. Supervisors will be accountable for updating formal job descriptions when job content (duties, activities, accountabilities, etc.) changes by 15% or more. Change in knowledge, skills and competencies. The supervisors assessment of the advancement of the individuals capabilities over the year. Range penetration. Base pay increases will parallel the learning curve, advancing base pay to the fully competent (midpoint) level and then tapering off. Change in market pay for the job. Base pay increases may be used to address inequities that arise relative to a jobs pay compared to the market.

NOTE: Bonus payments. In the future, performance incentives may be designed as bonus payments (variable pay) rather than as a guaranteed portion of total compensation. Variable pay programs will be developed and implemented thoughtfully over time, and will provide participants with the opportunity to earn pay levels above the average in the marketplace for above average performance.

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Compensation Strategy (continued)

3. Benefits. The benefits program is designed to secure the employees standard of living by reducing the employees concerns about financial catastrophe in the event of a medical emergency, disability, death, or retirement. Through its paid time off policy, Tulane also hopes to support a healthy and productive workforce by encouraging a proper work-life balance with ample time off for holidays, vacation, time to heal and time to tend to personal concerns. Tulane will maintain a benefits program that is aligned with industry peers and University affordability. We will strive to provide benefits that are perceived as fair, and that recognize and encourage longevity with Tulane. Competitive Position Using high quality, current and comprehensive market pay surveys, Tulane will establish base compensation levels that reflect marketplace practices. The competitive labor market in which the University competes for talent, will vary by employee group, as follows. Executives/Management- Target pay levels for fully competent performance will be at the median of University or nonprofit peer companies nationally. Professional Staff- Target pay levels for fully competent performance will be at the median of University or General Industry peer companies in the Region. Nonexempt- Target pay levels for fully competent performance will be at the median of General Industry in the greater New Orleans area. Communication Objectives Tulane is committed to providing employees with knowledge of their pay and benefits that will contribute to their career decisions and provide them with reasonable pay expectations. We would like employees to understand enough about the pay program that they trust in the pay delivery processes and do not spend their own valuable time on pay administration issues. In short, employees should:

Have a good understanding of how their base pay is determined. Know their pay range minimum and maximum, and know the pay range for their next progression/promotion. Understand the criteria and process for determining pay increases Understand any changes that are made to their compensation or benefits program. Understand the role and value of their benefits.

Compensation Resource Guide

Job Descriptions

A job description provides details about the requirements, job responsibilities, duties, and performance standards of a position. To be a fair representation of the job, the description must include a statement indicating the function of the position within the department, the minimum requirements, and the essential duties and responsibilities. In order to facilitate comparison between different positions and to ensure consistency, all job descriptions must be in the same format. (Please refer to the appendix for information on preparing job descriptions in the required format.) There are many advantages of thoughtful, well-organized job descriptions. The most important are: Employment and Selection Based upon the job description and the educational and experience requirements, recruiting efforts can be designed to match the essential requirements of the job. A good job description can be utilized to measure an applicants qualifications for the job as well. Employee Understanding Upon hire, a job description can help new employees to understand the specific duties and responsibilities of their new position. Employees can refer to their job description to measure whether or not they are performing satisfactorily and meeting expectations. If written properly, job descriptions can help employees understand how they fit in the organization and how their work helps achieve the organizations goals. Training and Development Gaps between required skills, knowledge, and job experiences versus preferred skills, knowledge, and job experiences can provide a basis for constructive training and development activity. Performance Management Job descriptions may provide employees with an explanation of their job in the organizations operation and the performance that is expected of them while they occupy the job. In addition, the description can be utilized as a basis for evaluating employee performance over a period of time. Wage and Salary Administration WFMO staff members use job descriptions to compare one position to another. The comparisons assure that job classifications, pay decisions, and benefit allocations are fairly and accurately handled. Tulane also uses the descriptions for matching jobs on surveys so that it can determine how pay stacks up against that of other employers. Legal/Regulatory Compliance Job descriptions provide a basis for determining whether a job is exempt or non-exempt from the Fair Labor Standards Act and assist in determining the proper EEO classification. Additionally, the job description allows Tulane to meet its obligation to define "essential" responsibilities and job demands as required by some laws, such as the Americans with Disabilities Act (ADA).

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Pay Grades and Ranges

Tulane administers base pay by using a pay structure composed of a series of pay grades and ranges. As an administrative practice, a job is placed into a grade and a target pay level is established for the position (the midpoint or market rate), along with a specific minimum (the hiring rate) and maximum (limit on the rate an employer will pay for each job). The minimum of the pay range is the rate paid an employee who is assigned to a position for which he/she possesses minimal qualifications and who is expected to be able to perform basic duties and responsibilities after normal training. Organizations using this scheme are said to manage to the midpoint; that is, a fully job-knowledgeable employee who consistently meets expectations or who has continued to learn and grow in the job for several years will be paid at midpoint. This midpoint is the proxy for the targeted market rate for the job. In theory, only employees who consistently exceed performance standards on a sustained basis might expect a salary above midpoint. The pay ranges serve as a key cost-control mechanism for Tulane.

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Updating the Pay Structure

In order to maintain a competitive pay structure, Tulane may adjust its pay ranges every year in accordance with annual salary budget surveys. The primary source utilized in determining an appropriate adjustment will be the WorldatWork Annual Salary Budget Survey. In accordance with policy, a comprehensive market review will be performed every two to three years. This review will involve the collection of market data for approximately 200 benchmark jobs and then pay structure adjustments made to reflect the findings of this comprehensive review. Note: Pay structure adjustments do not change the grades to which positions are assigned and do not result in automatic changes to individual salaries. Salary structure adjustments are normally effective January 1 st of each year. All structure increases are contingent upon the financial resources of the University.

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Job Evaluation/ Reclassification

Work measurement provides a systematic process for measuring job content that enables an organization to establish the relative value of jobs across all levels within the organization, to compare jobs to the external marketplace, and to satisfy tests of fairness and reasonableness. Work measurement concerns itself only with job size/complexity. The process assumes fully competent performance and does not evaluate organization or incumbent performance. The oldest and most widely accepted job evaluation methodology is the Hay Guide Chart-Profile Method of work measurement. This system examines three primary factors: 1) the knowledge required to do a job; 2) the kind of thinking required to solve problems commonly faced; and 3) the responsibilities assigned to a job. In order to assess the relative value of each staff job, Tulane uses a streamlined job measurement tool rooted in the fundamentals of the Hay methodology and other well-established job analysis methodologies, and comprised of the following four factors. Complexity is the total knowledge and thinking required in the job. Knowledge can be attained through formal education or technical training, experience, on-the-job training, or any other effective sources. Knowledge can include understanding processes, technical skills, and conceptual expertise in one or more fields of education, management or science. Thinking is the application of knowledge in the job. Thinking ranges from choosing from among well-defined choices to using innovation and creativity to overcome difficult and complicated challenges. Interpersonal Demands measures the nature of the jobs person-to-person relationships with job contacts, both internal and external (referred to as constituents). Interpersonal demands are not determined by the frequency of contact, rather by the type of interpersonal interactions required and the interpersonal skills needed for the incumbent to be successful in his/her job. Results Impact is the jobs influence on Tulanes strategic plan and objectives. It measures the jobs role in the Universitys decision making hierarchy, and the requirements of the job in making changes and/or achieving results. Management measures the extent to which the job is required to bring together, harmonize, and integrate various aspects of Tulanes operations in order to drive high levels of service, quality, innovation, effectiveness and efficiency.

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Job Evaluation/ Reclassification (continued)

A reclassification may be appropriate if the content of a job has changed significantly (e.g., the responsibilities have changed by more than 15%). The following reclassification process should be followed by employees who believe that their position is not classified correctly: 1. Any department requesting a reclassification of an employee should submit the following to their dean or respective Senior Officer: employee's name, current title and current salary; current job description and a revised job description with new/additional duties highlighted; proposed new title; a current organization chart for the department and a proposed organization chart for the department, post-reclassification; a written justification for the reclassification, including the proposed source for any salary adjustments to be made to the employee's salary and the department's basis of assumption for the new salary. If the dean or Senior Officer approves the reclassification, he/she will forward the request and attendant paperwork to the Vice President for Administrative Services. 2. The Vice President for Administrative Services will review the proposed reclassifications once every four months in consultation with the Chief Operating Officer, the Provost and the Senior Vice President for Operations and Chief Financial Officer. The appropriate senior officer for the department requesting the reclassification, if not included in the aforementioned group, will be consulted. 3. All approved reclassification requests will be sent to WFMO for completion of the reclassification review by the Compensation department. Documentation must be reviewed by OIE. 4. The requesting department will be notified of the approval and the impending review. Departments will be notified of those reclassification requests that are not approved. 5. If the reclassification results in a higher grade, the employees salary will be increased to at least the new pay grade minimum. If the reclassification results in a lower grade level assignment, the employees new salary may not exceed the new pay grade maximum. Changes in job content and definition that arise from the temporary assignment of duties or from typical growth in a job should not be addressed with reclassification, but through the performance management/performance appraisal process.

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New Hire Guidelines

For purposes of this policy, new hires are defined as employees who have never been employed by Tulane, a former employee who has been separated from the University for more than 30 days due to voluntary resignation, or a former employee who was laid-off for more than one year. Starting salaries for new hires should reflect the value of the job and current allowable hiring ranges. Department heads are responsible for considering internal pay equity regarding a proposed new hire salary. Tulane hiring rates for jobs will be dependent upon the skills and progressive job experience of the candidate. Typical candidates who have minimal up to five years of experience should be hired at 80% up to 90% of the salary range midpoint. Those with more than five years of progressive experience in a comparable job, who can demonstrate superior past performance can be hired at 90% up to 100% of the salary range midpoint. It is not appropriate to offer a low starting salary with the promise of an increase after the introductory period, and such requests for salary increases will be denied. Any agreements, whether written or verbal, that promise an increase at the end of the introductory period, or at any time during the fiscal year in which the employee was employed, are not recognized or supported by University policy for staff employees. Therefore, all employment offer letters must be submitted to WFMO for review and approval prior to delivery to the new employee. Filling a Vacancy (all via Ultimus) Departments wishing to fill a vacant position must follow the following guidelines.
1. Utilizing the online Ultimus system, complete a Personnel Request form and include the attachments listed on the form. 2. The form will be electronically routed to the Department Head and the appropriate Senior Officer for approval. 3. Once approved, the form will be electronically routed to the Budget Office or HSC Financial Services for budgetary approval. If sufficient funds are unavailable, they will contact the department to try and resolve directly. 4. If sufficient funds are available as determined by the Budget Office or HSC Financial Services, the form will be forwarded to WFMO for further processing. 5. The Compensation Analyst will review the information to ensure that the job title and proposed salary are correct. Any concerns or issues will be discussed with the department. 6. Once approved, the paperwork will be electronically forwarded to the Employment Coordinator, who will proceed with the employment process.

The process is the same if a department is establishing a new position.

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Performance Management

Performance management is the process by which employee growth and related accomplishments on the job are formally evaluated. To facilitate this process, all supervisors are responsible for communicating to their employees what the job expectations, annual goals and annual development plan will be. At the time of employment, each employee is to be given a copy of his/her job description, and there will be a discussion between supervisor and employee to ensure an understanding of the required job duties and responsibilities. Ongoing communications should also occur throughout the year between employees and supervisors regarding job expectations and performance. Between January 1 and no later than March 1 of each year, the supervisor and employee together will review a performance appraisal form completed by the supervisor, along with the employees job description (see appendix for sample form). In this process, the employees progress regarding personal goals and contributions to department objectives for the new fiscal year will be discussed; and performance standards for each key responsibility indicated on the job description will be updated, if necessary. If the employee is not performing all duties in a satisfactory manner, the supervisor and employee will work together to develop a strategy to ensure performance improvement. Completed performance appraisals and accompanying job descriptions, both in the prescribed format, must be submitted to WFMO by March 15 of each year. This written process will apply to all exempt and non-exempt employees whose positions are classified in this Guide.

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Base Pay Increase Guidelines

Tulane will consider four factors in determining an appropriate base pay increase for an employee. Performance . Creating a high performance culture starts with paying-forperformance and ensuring that Tulane retains its highest performers. Therefore, performance ratings will be considered in allocating pay increases. Market deficiencies. In order to effectively compete for talent and to pay in a manner consistent with market practices, Tulane will examine those job categories that are the furthest below market in considering pay increase allocations. Living wage. The significant rise in the cost of living in New Orleans has impacted all Staff employees. However, nowhere has the pain been greater than among those that earn the least. These are the individuals who have had the greatest proportion of their income diverted to living cost increases. Therefore, in allocating pay increases, Tulane will consider those employees who have the greatest challenge in fulfilling the most basic of their needs. Over time, as Tulane revises its performance management practices, and trains supervisors and managers in proper performance planning and development, the following factors will determine base pay increases Change in job accountabilities. The supervisors assessment of changes in the scope, complexity overall workload and responsibility of an employees job over the course of the year. Change in knowledge, skills and competencies. The supervisors assessment of the advancement of the individuals capabilities over the year. Range penetration. Base pay increases will parallel the learning curve, advancing base pay to the fully competent (midpoint) level and then tapering off. Change in market pay for the job. Base pay increases may be used to address inequities that arise relative to a jobs pay compared to the market.

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RedCircled Employees

A red-circled salary is one that is greater than the maximum of the range in which the job is located. Under the new schedule of salary grades and ranges, any employee who is above their salary range maximum, and therefore red-circled, will already be paid at least 20% above midpoint (market). Because these employees are receiving salaries higher than the market value of their jobs, their base salaries will be frozen until future revisions of the salary structure catch up. Those red-circled employees who are deemed to perform at the very highest level will be eligible to receive a lump sum payment, contingent upon financial resources and administration policies. The maximum amount of this lump sum payment will be a percentage of base pay equal to the same percent as Tulanes overall salary increase budget.

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GreenCircled Employees

A green-circled salary is one that is less than the minimum of the pay grade in which the job is located. Because employees with these salaries are being paid an amount less than the market value of their jobs, the University has committed to bringing these salaries up to the range minimums. These increases are called equity adjustments and will be considered each fiscal year, contingent upon available funding.

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Promotion, Transfer and Demotion

A promotion is the result of: 1) an opening at a higher job level as a result of the current incumbent moving, or 2) a business need to create a job at a higher level. In both cases, there is a probable need to backfill the position of the promoted employee. Supervisors are encouraged to promote qualified employees into vacant or new positions. An employee must have been employed with the University at least six consecutive months to be eligible for a promotion. Procedures for Requesting a Promotion 1. The department must submit the old and new job descriptions, an organization chart, cover memo, and proposed salary changes to the Compensation Analyst for review. If the department wishes to promote an employee from within, the department must prepare a memo addressed to the Vice President for OIE explaining why waiving search procedures is justified, and including the employees resume. 2. Once the Compensation Analyst has reviewed the position for the classification purposes, the departmental documentation will be forwarded to the Vice President for OIE for review. Once a decision regarding the promotion has been made, the department will be notified in writing. A written response also will be forwarded to the department by the Compensation Analyst. 3. If approved, the department must submit a PAF to initiate the change. For all salary actions, the signature of the appropriate Senior Officer. Supervisors may not ask employees to permanently assume the additional job duties or responsibilities of a higher level job until the employee has been formally promoted into that job. Transfers A transfer takes place when an employee applies for and is accepted into a posted vacant position in another department (see appendix on completing a Tulane Employee Application for a Vacant Position Form). There are several ways in which transfers will be addressed. 1. A lateral move occurs when an employee transfers from one position in a department to another position in a different department with the same job title and grade level. In such cases, the employees salary will remain unchanged, as long as the employees salary is at least the minimum of the grade. 2. If an employee transfers from one position in a department to a different position within the same grade in another department, the employees salary will remain unchanged, as long as the employees salary is at least the minimum of the grade. 3. If an employee transfers from one position in a department to a higher-level position in another department, or within the same department (i.e. promoted), the employee may receive an increase in salary up to the midpoint of the new grade salary range.

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Promotion, Transfer and Demotion (continued)

4. If an employee transfers from one position in a department to a lowerclassified position in another department, the employees salary will be decreased if it is currently above the maximum of the new grade salary range. The employees new salary must fall between the minimum and maximum of the new grade salary range. At no time will an employee receive a salary increase upon accepting a lower-classified position in the same or in another department. Note: An employee who moves from one budgeted position to a different budgeted position within the same department with no change in title or grade is not considered to have transferred and is not eligible for a salary increase upon the move. Demotions Voluntary or involuntary movements by employees that result in reassignment by the supervisor or department head within the department to a lower pay or grade status because of disciplinary actions or inability to perform the job duties and responsibilities of the position are considered demotions. The employees salary will be reduced to fall above the minimum of the salary grade of the new position. At no time will an employee be allowed to receive a salary increase upon demotion. Individuals who may be moved to a lower level job, at Tulanes request, to fill a business need, will not have their salary reduced. Demotions must be approved by WFMO and OIE to ensure compliance with federal and state job discrimination laws.

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One-Time Payments

Tulane desires to evolve the compensation system towards a pay for performance culture. One-time payments, like Bonus payments, can assist in the creation of that culture provided the administration of same is consistent. One-Time Payments Policy One Time payments are awarded for specific services, events or deliverables that are clearly outside the employees established job duties, including annual goals and objectives. (One-time payments are awarded as the precipitating event concludes and require pre- and post-approval by a senior officer. Normally such payments may not exceed 5% of the recipients base salary (except in those cases where the one-time payment is made for the delivery of a service, such as serving as an adjunct.) Examples of justifiable one-time payments include: 1. Extraordinary service during an emergency situation or in connection with an event of paramount importance to the universitys operations; 2. Continuing to provide services to ones former department on personal time in situations when the department cannot quickly fill a vacant position and needs the services. This service should only be for a predetermined fixed time frame. 3. Providing services in the universitys auxiliary operations or receiving payment for a class one teaches as an adjunct outside of core working hours. One time payments are not appropriate in any other circumstance . They can not be used to retain employees, to address gaps between current salary and market basis for salary, or to reward employees for fulfilling the requirements of their position as described in their existing job description. Further, one-time payments are not to be used to reward employees, for change in job accountabilities or content, or changes in knowledge, skill or competencies. In the case of the aforementioned, supervisors should consult with the department of Compensation in WFMO to determine if such changes warrant a reclassification.

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Fair Labor Standards Act

This federal legislation first enacted in 1938, established regular working hours, overtime pay at time and a half regular wages, and prohibited using minors in a number of occupations. It has been amended many times over the years, most importantly in August 2004. Enforced by the Department of Labor, the Fair Labor Standards Act (FLSA) determines whether or not a position is exempt or non-exempt, and stipulates certain other guidelines for salary administration. Each job must be tested under the FLSA to ensure appropriate status classification. It is very important that all Tulane employees be classified correctly, as penalties may be assessed the University for violations. Exempt Status An exempt position is exempt, or excluded, from the overtime provisions of the FLSA. Basically, employees in these positions are required, on a regular basis, to use independent judgment and have the authority to make decisions regarding matters of significance, as defined by the FLSA. This responsibility must be greater than merely ensuring that policies and procedures are followed correctly. The Compensation Analyst performs a detailed test under the FLSA to determine if a position should be classified as being either exempt or non-exempt. Since exempt employees are considered to be salaried and receive a given annual salary for satisfying the requirements and responsibilities of their positions, additional payment for any overtime work performed is not required. If asked by the supervisor or department head to coordinate or participate in a special project for the department itself on a temporary basis which requires additional work on the part of an exempt employee; and such duties or responsibilities normally are a part of the employees regular job duties, that employee will not be eligible for any additional remuneration either in the form of increased salary or lump sum payment. Exempt employees may be eligible for additional remuneration in the form of a temporarily increased salary if the employee is asked by the supervisor or department head to assume at least 25 percent of the duties and responsibilities of a different (exempt) position on a temporary basis, and such duties and responsibilities are not normally a part of that employees position. If approved, an exempt employees new temporary salary should fall between the minimum and maximum of the established salary range of the new position. If an employees salary already falls within the new range, the department head may, at his or her discretion, grant additional remuneration if funds are available; and is encouraged to do so in acknowledgement of the employees willingness to assume the different duties temporarily. At no time will this temporary increase exceed the maximum of the different position salary range. A memo providing justification for such a temporary reassignment must be forwarded to WFMO and to the Compensation Analyst for review and approval prior to making such assignment.

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Fair Labor Standards Act (continued)

An exempt employee may be eligible for a one time payment only if the employee is asked to perform services for a department other than the department in which the exempt employee is officially assigned; such duties are not normally a part of the employees job responsibilities; and if the work is to be performed outside normal work hours (e.g. teaching a class). Non-Exempt Status A non-exempt position is not exempt (not excluded) from the overtime provisions of the Fair Labor Standards Act (FLSA). Therefore, an employee who works more hours than the full-time equivalent of his/her work week must receive overtime pay. Non-exempt employees typically provide assistance to others and do not have the authority to make independent decisions over matters that impact the department significantly, as defined by the FLSA. Non-exempt employees are required to account for incremental days worked. For example, consider an employee scheduled to work 7.5 hours per day. If the employee works for 6 hours and then leaves early for non-medical reasons, the time sheet must be marked to show 6 hours worked and 1.5 hours of vacation time for that day. Time taken off for medical reasons may be charged against sick leave accrual time. If asked by the supervisor or department head to work additional hours as deemed necessary; such duties and responsibilities are normally a part of, or similar in complexity to, the employees regular duties, that employee must receive additional remuneration for overtime hours worked at the employees regular rate of pay. Overtime Pay The Universitys standard work week will consist of 37.5 hours for full-time work; in some departments, employees may be required to work a minimum of 40 hours per week due to the nature of the work being performed. For overtime purposes, the full-time equivalent will be the normal weekly hours worked for a particular position, whether it be 37.5 or 40 hours. A single work week is defined as any consecutive seven-day period of time. A non-exempt employee who works a standard 37.5-hour work week will be compensated overtime at the rate of 1.5 times the employees regular rate of pay for all hours worked in excess of 37.5 hours in a single work week. A non-exempt employee who works a standard 40-hour work week will be compensated overtime at the rate of 1.5 times the employees regular rate of pay for all hours actually worked in excess of 40 hours in a single work week. Vacation and sick leave do not count as time worked in determining overtime. Each work week stands alone, and overtime may not be averaged out or carried over into another work week or another pay period.

Compensation Resource Guide

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