Exempt Guidelines

The University of Maryland, College Park has a series of Exempt payroll titles. Exempt payroll titles are generic and typically represents the level of work for the position. However, the payroll title is not usually specific enough to clearly identify the job function.

• An authorized requestor, such as supervisor or hiring official, may create a more specific “functional” title when developing a position description. As an example a Coordinator may be the official payroll title, Financial Coordinator may be the functional title.
• A position description form  is created to more specifically describe each Exempt position. The PDF provides information regarding the purpose of the position, a synopsis of the duties and responsibilities, and the minimum requirements/qualifications of the position. A position description must also include funding information and approval of the appropriate authorities.
• An authorized requestor will submit a final PDF, via the eTerp system, in order to route it through the appropriate approval levels.
• A finalized Exempt position is placed into a pay band based on a review of the essential duties and responsibilities, its defined market value, and its relative position within the institution’s organizational structure. Positions  that cannot be matched to the market are “ranked” relative to comparable positions at the university using a whole job comparison approach.
• For Exempt positions established at Pay Band 1, the minimum qualifications include a substitution clause for the baccalaureate degree requirement stating “a baccalaureate degree or an equivalent combination of education, training, and experience.” In these cases experience may be substituted on a year-for-year basis. Exceptions, where appropriate, will be reviewed on a case-by-case basis and must have the approval of the respective Vice President in conjunction with the Assistant Vice President of University Human Resources.
• Exempt positions established at Pay Band 2 and above require a minimum of a baccalaureate degree. Exceptions, where appropriate, will be reviewed on a case-by-case basis and must have the approval of the respective Vice President in conjunction with the Assistant Vice President of University Human Resources.

A “new hire” is  the result of a search and selection process, regardless of whether the individual comes from within or outside of the University of Maryland, College Park.

Salary Setting

Each Exempt new hire salaries is set based on all of the following:

• Prevailing market wages for the specific position according to established institutional market salary surveys
• Salaries for comparable positions at the institution
• The level of education and experience and skills of the individual recommended for the position.

Target Hiring Ranges are established by the UHR office of Compensation & Classification

A target starting salary range is unique to each individual Exempt position vacancy and is based on a variety of factors, including the position’s duties, responsibilities, requirements, and position within the organization’s structure. The target starting salary range maximum for new hires is the market mean (average) for the position, and the minimum is 20% less than the market mean. As an example, a position with a market mean salary of $65,000 will have a target hiring salary range of $52,000 to $65,000.

• An authorized requestor will consult with UHR regarding Exempt target ranges and appropriate starting salaries prior to posting/advertising the position.
• The target starting salary range applies to Regular and C2 Exempt positions. Once the position is filled, the target range no longer applies. Each time a position becomes vacant again, a new target starting salary range is established at the time of the vacancy.

Candidate Offers

Once a search, to fill a position, is completed and approved by the appropriate authorities, including the university’s Equity Office, and prior to extending an offer, an authorized requestor will submit a hiring proposal via the eTerp system in order to route it through the appropriate approval levels. The hiring proposal should include the basis for selection, a statement that references have been checked, and a proposed hiring salary and start date. The eTerp system is maintained by University Human Resources.

• A search waiver is an exception to the regular search and selection process,and if approved, is subject to specific salary guidelines. Contact the appropriate Equity Officer or the office of Compensation and Classification for more information.
• When planning to offer Exempt starting salaries that are higher than the established target range, a request must be made to, and reviewed and approved by the appropriate Vice President and the Assistant Vice President of University Human Resources, prior to making an offer of employment to the candidate.

Probationary Period

Employment, for regular University System of Maryland employees in Exempt capacity, is on an at-will basis. The probationary period for a new hire/internal candidate placed into an Exempt appointment is one year.

A candidate who is currently a Regular or Contingent II employee at the University of Maryland, College Park is considered an internal candidate.

Salary Setting

• Upon the completion of a competitive promotional transfer to a position with a higher target starting salary range, or in the case of a promotion from within, the target starting salary range for the new position is used to establish the employee’s new salary.
• Upon the completion of a competitive lateral transfer to a position having a similar target starting salary range within the same pay band, there will be no change to the employee’s base salary.
• Upon the completion of a competitive transfer that is a demotional to a position with a lower target range, the position will be considered a voluntary demotion and there will be no increase in salary.  However, there could be a possible decrease in salary, depending on the specific circumstances.
• A search waiver is an exception to the regular search and selection process and , if approved, is subject to specific salary guidelines. Contact the appropriate Equity Officer or the office of Compensation and Classification for more information.

Candidate Offers

Once a search is completed and approved by the appropriate authorities, including the Equity office, and prior to extending an offer, an authorized requestor will submit a hiring proposal via the eTerp System, in order to route it through the appropriate approval levels, via the eTerp system. The hiring proposal should include the basis for selection, a statement that references have been checked, and a proposed hiring salary and start date. The eTerp system is maintained by University Human Resources.

Reclassification (Reclass) actions are based on significant and substantial changes in the position’s primary duties and responsibilities or when organizational structures have change. The changes have evolved and/or were unforeseen at the time of hire and are crucial to the mission and/or organizational effectiveness of the USM institution, or as a result of changes in a job evaluation program. A position may or may not have an incumbent at the time of a reclass.

Description

A reclass is an action that occurs when the job class to which a position is assigned is changed by raising it to a higher class, reducing it to a lower class, or changing it to another class at the same level/ within the same pay band and  with a different title.

It is the responsibility of the authorized requestor such as a supervisor of hiring official to submit a request for review and evaluation of the job duties of an employee under the above circumstances.

Every employee has the right to ask for a review of their duties. A request for a job reclassification review may be initiated by the incumbent, with an updated position description, subject to the approval of the supervisor.

Process

• An authorized requestor, such as a supervisor or hiring official, will update an existing position description form (PDF) to specifically describe how an individual position has changed, revising the title of the position, purpose of the position, the synopsis of the duties and responsibilities, and the minimum requirements/qualifications of the position.
• An authorized requestor will submit a reclassification request by updating an existing position description form (PDF) via the eTerp system, in order to route it through the appropriate approval levels.
• The office of Compensation and Classification reviews and evaluates reclass requests. A compensation representative may request additional information, depending on the individual clarity, characteristics, and circumstances of the reclassification request. Once the evaluation has been completed, the position is approved in eTerp by the office Compensation and Classification.
• Job reclass decisions may be effective retroactive to the date the request for review was received in the office of Compensation and Classification.

Reclassification Salary Adjustments

An employee in a position reclassified to a higher job classification/new payroll title may receive a salary adjustment amount that is at the discretion of the department. For a reclassification of an Exempt employee, the departmental administrator has the authority to increase the incumbent’s current base pay by up to 12%.

Exempt Within Band Salary Adjustment

• A within band salary adjustment may be appropriate when there is a significant change in duties to an Exempt position, that substantially increases the level of skill, required effort, and responsibilities of the incumbent, and the payroll title and pay band are not changing. The functional title may change. The departmental administrator has the authority to increase the incumbent’s current base pay by up to 12%.
• A regular employee who has served an original probationary period, and whose position is reclassified, will not serve a probationary period.

Cost of Living Adjustments (COLA) are set by Maryland State Law and USM budget action and salary directives. All regular employees receive COLA if and when it is allocated by the State.

In cases where an employee’s salary is at, or above, the maximum of salary range, the employee will still receive a COLA increase. COLA for a Contingent 2 employee is at the discretion of the hiring department. The hiring department determines whether or not COLA is part of contract at the time of hire.

• Provided funds are available, it is the policy of the USM that employees who consistently meet the standards of performance for their positions shall receive performance based salary increases. Increases are generally effective on July 1, the new fiscal year.
• The Exempt merit budget is determined by the University System of Maryland (USM) and administered by each USM institution. UMD’s Performance Review and Development (PRD) process is used as a baseline determinant for merit allocation and salary action for Exempt employees. All merit pay and salary action decisions are subject to, and defined by, current pay policies and salary guidelines, as distributed to departments through the annual budget process. Major Unit Heads are responsible for complying with the budgetary, or other guidelines, established in their individual school or administrative divisions.
• Exempt employees who receive an overall rating of “Below Expectations” or “Unsatisfactory” are not eligible for merit pay or salary action for the upcoming fiscal year.
• When an employee’s salary is at, or above ,the maximum of salary range, the employee is still eligible for a  merit increase to base pay.

Equity

• An equity increase may be permitted for a staff employee in a department or unit where the salaries of newly hired individuals, or prior retention increases to others, have created serious compensation disparities among similarly situated employees. If the institution wishes to provide such an increase to operationally critical staff members who are part of a collective bargaining unit, the appropriate bargaining unit representative will be notified in advance.
• All proposed equity adjustments must be discussed on a case-by-case basis with the office of Compensation and Classification.  All proposed equity increases must be approved by the appropriate Dean/Vice President, and the Assistant Vice President of UHR. There are certain salary requests that require approval of the President and/or the USM Chancellor.

Retention

• A counter-offer may be considered if a key staff employee, in a position that has been deemed both critical to business needs and difficult to refill, can produce a written employment offer from a hiring agency that is external to the University of Maryland College Park or the department head must attest to having reasonable certainty that the staff person is being actively recruited and a preemptive action is necessary to avert the employee’s imminent departure.
• All proposed retention offers must be discussed on a case-by-case basis with the office of Compensation and Classification. Prior to making a counter-offer, all proposed retention increases must be approved by the appropriate Dean/Vice President, and the Assistant Vice President of UHR.
• A counter-offer will not be approved if the new employment offer comes from another department within the University of Maryland College Park.

Criteria

• The staff person must have a written employment offer from an external employer. Written evidence, including email or other correspondence from another employer,or search firm for an employer, with a compensation level that is likely to exceed the employee’s current compensation; or other strong evidence that the institution is at imminent risk of losing an operationally critical staff member in the absence of a retention adjustment, may be necessary.

The staff person and/or position must be deemed “operationally critical,” defined as:

• Having specialized and/or unique skills or experience that cannot be replicated without hiring a replacement at a higher salary (i.e., greater than the target hiring range); or
• The vacating of the position would cause significant disruption to the critical operations of the unit, or cause a loss of federal or other external funds, or compromise the institution’s ability to compete for sponsored research grants or contracts; or
• The position has experienced demonstrable retention challenges in recent years.

Salary Setting

The retention offer may be an amount up to the external job offer, or, if preemptive, the retention is limited to 12% of the employee’s base salary.

Process and Approvals

• To request approval for a staff retention increase, the chair or director must complete the Salary Increase Form and route it through the college and on to the Assistant Vice President of University Human Resources. If approved, the Assistant Vice President of UHR will forward the request on to the appropriate Vice President for final approval.
• All proposed retention and equity increases, as well as total salary increases of greater than 15%, must be reviewed and approved by the appropriate by the President.

Salary range structures are reviewed biennially for market competitiveness. The pay bands may be adjusted as a result of the review. Employees do not receive individual pay increases with the salary range adjustments unless current salaries fall below the new range minimum for the respective pay grade.

Links:

• Past Cost of Living Adjustments
• Performance Review and Development (PRD) information
• Past Merit Budget Amounts

Acting Capacity

An acting appointment is a temporary status whereby an employee is placed in a higher-level regular position in the same department for a period of up to 6 months.  This typically happens when time or circumstances do not permit the immediate selection of a permanent appointment to a higher-level regular position under established search and  selection procedures and is anticipated to exceed thirty (30) consecutive calendar days.

Nonexempt and Exempt regular employees are eligible to serve in an acting capacity.

• Contingent Category II employees may be appointed to a regular position in an acting capacity if unusual or extenuating circumstances exist.
• An employee performing in an acting capacity must meet the minimum qualifications of the vacant high-level position.
• The period of the acting capacity may be extended beyond six months and up to twelve (12) month with the approval of the appropriate Vice President, in conjunction with the Assistant Vice President of University Human Resources. Additional extensions may be considered based on the operational needs of the institution.
• At the end of an acting appointment employees shall be returned to their former position with the same salary and status as they would have had if they had not been temporarily reassigned.
• All base salary adjustments, such as COLA and merit, are applied to the regular base salary of the employee and do NOT include the acting stipend.

Salary Setting

• An acting capacity salary increase for an Exempt position may be up to an additional 12% of the employee’s current base salary.
• An acting capacity for a Nonexempt position is an additional 6% if the acting appointment is a 1 grade increase.  It is 12%, or the minimum of the new pay range, if the appointment is 2 or more grade levels.

Process and Approvals

• The Acting Capacity must be entered into PHR as an addition to salary and include the duties, justification, calculation of pay, and the acting position number.  Once released, the approval process is  “tiered” requiring the department, division, and final UHR approval.
• Questions concerning salary additions in the PHR system should be directed to AskHR.umd.edu.
• Questions concerning duties and or payment should be directed to the appropriate Classification/Compensation Analyst.

An administrative increment, only available to Exempt staff, is payment for temporarily assigned duties that are outside of the scope of an employee’s regular position. The additional duties are performed during normal work hours. The duration of an administrative increment is typically less than 6 months.  Justifications to extend this may be considered on a case-by-case basis. Contact the office of Compensation and Classification Office for more information.

Salary Setting

• An Administrative Increment increase for an Exempt position may be up to an additional 12% of the employee’s current base salary.

Process and Approvals

• The Administrative Increment must be entered into PHR as an addition to salary and include the duties, justification, and the calculation of pay.  Once released, the approval process is  “tiered” requiring the department, division, and final UHR approval.
• Questions concerning salary additions in the PHR system should be directed to AskHR.umd.edu.
• Questions concerning duties and or payment should be directed to the appropriate Classification/Compensation Analyst.

An Overload is additional pay earned by an employee for work performed that is substantially different and in addition to the essential duties and responsibilities of the employee’s regular position to operating units other than their own.  There are two types of overloads available to Exempt Staff employees: teaching and administrative.

Teaching Overload

Staff employees may receive a stipend for teaching a catalog course. The rate of pay is determined by the Dean’s office in the applicable college. Teaching the class is done outside of the employees typical work day and should not interfere with their regular job duties. Teaching overloads are awarded on a semester by semester basis.

Administrative Overload

Exempt full time staff may receive additional pay for performing duties that are unrelated to the employee’s regularly assigned position.  The duties may be performed in a different, unit, college, or division, and the additional work must be performed outside of the employee’s regularly scheduled work hours. The Overload work cannot conflict with the employee’s regular duties. Overloads should not be used to perform work that would be considered a higher level job. An Administrative Overload may be granted for up to 6 months with extensions may be reviewed on a case-by-case basis.

Salary Setting

• Teaching Overloads: The determination on the appropriate amount to pay for teaching a  specific class is at the discretion of each College.
• Administrative Overloads:  The determination on the amount of pay for an administrative overload should be in line with the type of work that is required and the number of hours that it will take to complete the assignment.  Each request is reviewed in detail on a case-by-case basis by the office of Compensation and Classification.

Process and Approval

• Overloads must be entered into PHR and include the duties, justification for the overload, and the calculation of pay.  Once released, the approval process is  “tiered” requiring the department, division, and final UHR approval.
• Questions concerning overloads or salary additions in the PHR system should be directed to AskHR.umd.edu.
• Questions concerning duties and or payment should be directed to the appropriate Classification/Compensation Analyst.