Compensation Glossary

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Compensation Glossary

Summary: A list of generic compensation terms and definitions.

For additional information, check the applicable Staff Personnel Policy or bargaining unit contract.

Base Salary - An employee’s current salary, excluding overtime and any temporary salary adjustments (see Stipend). Base salary may be expressed as hourly, monthly, annual, per diem ,or by agreement. Base salary is also known as Regular Rate.

Break in Service - A break in service is a separation in employment status. The following are not considered breaks in service: return to pay status from an approved leave without pay, furlough, temporary layoff, indefinite layoff during a period of right to recall and preference for reemployment, or on the next working day following a separation.

Class – A classification that applies to an established job title, published in the University-wide Title and Pay Plan, and designated by a four-digit title code.

Confidential Employee – An employee who is required to develop or present management positions on collective bargaining, or whose duties normally require access to confidential information that contributes significantly to the development of management positions on collective bargaining.

Demotion
– The change of an employee from one position to another position that has a lower salary range maximum is termed a demotion.

Desk Audit – An “interview” by a Compensation Analyst with the incumbent of the position and their immediate supervisor in order to gather information to appropriately classify the position.

Equity Adjustment – Salary changes outside of the normal salary programs (promotions, reclassifications, merits, etc.) to remedy salary issues such as external pressure in high demand areas, internal salary compression, and/or retention considerations. Equity adjustments are not granted to reward performance.

Exempt Position
– A position not subject to the overtime provisions of the federal Fair Labor Standards Act (FLSA). Exempt employees are not paid for overtime hours worked and are not required to adhere to time record keeping for pay purposes.

FastClass – A Web-based process that takes a reclassification request from the initial request to the final decision.

FLSA – Fair Labor Standards Act, a federal law governing pay practices.

Full-time equivalent (FTE) – An FTE is often confused with position. A position is a single job for one person while an FTE as a standard of one employee working 40 hours/week. An FTE of 1.0 means that the employee is considered a full time worker. One FTE position may be split into two positions, such as one position for 0.4 FTE (16 hours/week) an the other for 0.6 FTE (24 hours/week).

Furlough - The scheduled periods during which employees in partial-year career positions are not at work.

Job Description – Written documentation of job duties performed by an incumbent in the position.

Lead Worker – An incumbent who is responsible for monitoring and checking the work of other employees in the same unit or department working on a project or a specific assignment. The Lead Worker does not have full formal supervisory authority for staff assigned to projects; however, in order to complete projects/assignments, Lead Workers must be able to schedule and control the daily working arrangements for a specified group of employees.

Merit Salary Increase - Salary advancement within a salary range awarded to an eligible employee is based on performance as it relates to current pay and assigned responsibilities, the employee's current position within the salary range, relative performance, and availability of funds. Merit increases are normally awarded annually, in accordance with University-wide funding guidelines and collective bargaining agreements.

Non-Exempt Position– A position subject to the minimum wage and overtime pay provisions of the federal Fair Labor Standards Act (FLSA). Non-exempt employees are paid for all hours worked in excess of 40 in a workweek. Functions of a non-exempt employee typically involve the performance of routine duties adhering to established policies and procedures.

Open range salary system – A salary structure with a minimum and maximum value to the pay range for a job. An individual progresses through the range based on performance.
  • Minimum – The lowest salary level of a salary range.
  • Midpoint – The salary midway between the minimum and maximum rates of a salary range.
  • Maximum - The highest salary rate of a salary range.

Pay Status - Any period of time for which an employee receives pay for time worked, including compensatory time off, or for time on paid leave. Paid leave time includes sick leave, extended sick leave, vacations, administrative leave with pay, holidays, or military leave with pay.

Performance Evaluations
– Written documentation of an employee’s performance during a specified time period.

Premium Overtime
– Pay granted to non-exempt employees under the FLSA at the rate of 1.5 hours for each hour worked over 40 in a workweek.

Probationary Period – Initial period of University employment during which an employee’s work performance is evaluated. The length of time is usually six months. Probationary periods are for represented employees and Professional and Support Staff employees who hold career appointments. Employees in the Manager and Senior Professional Program do not serve a probationary period.

Promotion – The change of an employee from one position to a new position that has a higher salary range maximum.

Range Adjustment
– An across-the-board increase to a salary range.

Reclass Request - When an employee and/or their supervisor request a reclassification based upon at least a 50% change of responsibilities within the employee’s position. Reclasses are now performed via an online system. See FastClass above.

Reclassification, Upward – The movement of an employee's current position to a different class or salary grade having a higher salary range maximum.

Reclassification, Downward – The movement of an employee's current position to a different class or salary grade having a lower salary range maximum.

Reclassification, Lateral – The movement of an employee's current position to a different class having the same salary range maximum.

Red-circling – An employee’s salary that is above the established range maximum assigned to the job grade. Hence, the incumbent is usually not eligible for further base pay increases until the range maximum surpasses the individual's pay rate.

Regular overtime - Pay granted to non-exempt employees under the FLSA for time worked beyond 40 hours in a workweek that includes vacation and sick leave at the rate of 1 hour of pay at regular rate for each hour worked.

Regular Rate
– See Base Salary.

Regular Status Employee - A career employee who is not required to serve a probationary period, or a career employee who has successfully completed a required probationary period.

Rehire
– A return to pay status of a person following a break in service. Prior University service is not included for purposes of staff personnel policy, retirement policy, or employee group health and insurance plans, unless specifically provided in the appropriate policy.

Salary increase
- An employee's total salary increase in a single fiscal year. Examples of salary increases are merits, promotional increases, and equity increases.

Shift and Weekend Differential (Non-Exempt Employees Only) - A form of pay to employees in an eligible class who are required by management to work an assigned evening or night shift.

Step-based salary system
– A salary structure with standard progression rates established within a pay range for a job. Employees may progress from step to step on the basis of performance.

Straight time – Pay granted to non-exempt employees under the FLSA at the rate of one hour for each hour worked under 40 hours in a workweek.

Stipend – Additional monies paid to an employee who is temporarily assigned responsibilities of a higher level position or other significant duties not part of the employee’s regular position. The sum of the stipend and base salary shall not exceed the maximum salary of the higher level position.
Note: Stipends are only granted to non-represented employees.

Supervisor
– An employee who customarily and regularly directs the work of two or more career/contract employees within a unit or department. Supervisors have the authority to hire, fire, assign work, counsel, discipline, handle grievances/ complaints and conduct performance evaluations or make suggestions and recommendations on these actions.

Total Compensation
– The complete pay package for employees, including all forms of money, benefits, services, and in-kind payments.

Transfer - The change of an employee from one position to another position that has the same salary range maximum.

Workweek
- A fixed period of seven consecutive 24-hour periods.

Need an expert? If you have any questions, please contact an expert in Compensation in Human Resources, (949) 824-5210.

Notice: University policies, procedures and applicable collective bargaining agreements shall supersede information in this document or elsewhere on this site.


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