Exempt Guidelines
Exempt positions are professional, administrative, or managerial roles that are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). Exempt employees are:
- Paid on a salary basis in accordance with FLSA
- Not eligible for overtime compensation
- Expected to work the hours necessary to fulfill job responsibilities, regardless of scheduled hours or FTE
- Typically require a full-time level of commitment to meet job responsibilities (generally 40 hours per week or equivalent effort)
Pay Bands
The University of Maryland (UMD) uses a broad-banded compensation structure for exempt staff. Pay bands are established and maintained by the University System of Maryland (USM). Pay band 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 band.
Positions are assigned to one of five pay bands based on factors that include but are not limited to:
- Scope of responsibility
- Organizational impact
- Required knowledge, skills, abilities, and any applicable licenses or certifications required to perform the essential duties and responsibilities
- Fiscal accountability
- Complexity of work
Within each pay band, position-specific target hiring ranges are established.
Establishing Positions
Departments submit completed position descriptions through Workday for review and approval. All requests for new or revised positions must include a corresponding future-state organizational chart that reflects the proposed reporting structure and position placement within the unit.
A position description must include a job description summary describing the purpose of the position and the essential duties and responsibilities.
Target hiring range methodology
UHR Classification and Compensation assigns the minimum qualifications, pay band, and position-specific target hiring range based on:
- Duties and responsibilities
- Market value
- Organizational structure
- Internal equity (considered in context with other factors and not used in isolation to establish or elevate the range)
HOW THE RANGE IS SET
The position-specific target hiring range, which applies to Regular and Contingent II (CII) Exempt Staff positions, is established using the market mean (average) salary for the position. The market mean is a reference point in establishing compensation, not the target hiring maximum. Target hiring ranges are developed using a consistent methodology that establishes a range below the market mean to support internal equity and organizational consistency.
Each time a position becomes vacant, a position-specific target hiring range is established based on this methodology.
Salary Setting for New Appointments and Position Changes
A new hire includes any individual selected through a competitive search process, whether internal or external. Each Exempt new hire salary is set based on market salary data, internal equity, and the candidate’s qualifications and experience. Additional approval is required for starting salaries that exceed the established target hiring range.
A candidate who is currently a Staff Regular or CII employee at UMD is considered an internal candidate.
- When an employee is promoted to a position with a higher target hiring range, the target hiring range for the new position will be used to determine the employee’s salary.
- When an employee transfers to a position within the same pay band and with a comparable target hiring range, there is typically no change to the employee’s base salary.
- When an employee voluntarily accepts a position with a lower target hiring range, there is typically no salary increase. A salary reduction may be considered based on the circumstances of the transfer.
A search waiver is an exception to the regular search and selection process and, if approved, is subject to the same salary-setting guidelines outlined above. Please contact the UHR Talent Acquisition Team regarding search waivers.
Reclassification and Within-Band Salary Adjustments
Reclassification
A reclassification may occur when a position’s duties and responsibilities have changed significantly in scope, complexity, or level such that the position no longer aligns with its current job classification. This determination is based on the position evolving to include higher-level duties and responsibilities and is not driven solely by increases in workload, task volume, or staffing shortages.
When a position is reclassified, the incumbent’s salary may be adjusted to reflect the change in scope and alignment with the new classification. Salary adjustments may be up to 12% at the discretion of the department, depending on the extent of the change in duties and responsibilities.
Within-Band Adjustment
A within-band adjustment may occur when there is a significant increase in the scope of responsibilities within the same job classification and pay band. This determination is based on an expansion in the level, complexity, or responsibility of the role and is not driven solely by increases in workload, task volume, or staffing shortages.
The job title and pay band remain unchanged; however, the duties reflect a meaningful expansion in responsibility, complexity, or required skill beyond the position’s current scope. When a within-band adjustment is granted, the incumbent’s base salary may be increased to reflect the expanded scope of work. Salary adjustments may be up to 12% at the discretion of the department, depending on the extent of the change in duties and responsibilities.
| Action | What changes | Trigger | Salary adjustment |
|---|---|---|---|
| Reclassification | Job classification changes; position no longer aligns with current classification | Significant change in scope, complexity, or level of duties | Up to 12%, department discretion |
| Within-band adjustment | Job title and pay band stay the same | Significant expansion of responsibility within the same classification and band | Up to 12%, department discretion |
Salary Adjustments
Cost of Living Adjustments (COLA) are set by Maryland State Law and University System of Maryland (USM) 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 the pay band, the employee will still receive a COLA increase.
COLA for a CII employee is at the discretion of the hiring department. The hiring department determines whether or not COLA is part of the contract at the time of hire.
When funding is available, employees who consistently meet performance expectations may receive merit salary increases. Merit funding is established by the University System of Maryland (USM) and distributed to institutions for administration. At UMD, performance evaluations conducted through the Performance Review and Development (PRD) process are used to guide merit eligibility and salary decisions. All merit increases are subject to approved salary guidelines and budget allocations.
Employees whose salaries are at or above the maximum of their assigned salary range may still be eligible for a merit increase. In these cases, the increase is provided as a lump-sum payment rather than an adjustment to base salary, consistent with USM salary guidelines for non-bargaining unit employees, as well as Article 8, Section 2 of the USM and AFSCME MOU for bargaining unit employees represented by AFSCME.
Merit adjustments for a CII employee is at the discretion of the hiring department. The hiring department determines whether or not merit adjustments are part of the contract at the time of hire
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. All proposed equity adjustments must be discussed on a case-by-case basis with UHR Classification and Compensation. Please reach out to your UHR Classification and Compensation Consultant to discuss these cases before any action is taken.
A retention increase may be considered when a staff employee in a position identified as both critical to operational needs and difficult to backfill receives a documented external employment offer from an organization outside of the University of Maryland, College Park. The external offer must be submitted as part of the request. A counter-offer, in an amount up to the external job offer, may be used to retain the employee, subject to appropriate approvals.
A pre-emptive retention increase may be considered when a staff employee occupies a position that is critical to operational needs and difficult to backfill, and there is a credible risk of the employee’s imminent departure due to active recruitment by an external organization. The department head must attest that they have reasonable certainty the employee is being actively recruited and that a pre-emptive salary adjustment is necessary to avert the employee’s imminent departure. The pre-emptive retention offer is limited to 12% of the employee’s base salary.
Temporary Pay Additions
Applies to all three below
If, prior to Family and Medical Leave (FML), an employee was receiving one of these increments and continuous FML lasts ten or more business days, salary is adjusted back to the regular rate, excluding the temporary increment, for the duration of that leave.
An acting capacity assignment is a temporary arrangement in which an employee performs the duties of a higher-level regular position for a limited period, typically when a permanent appointment cannot be immediately made. Acting assignments are generally expected to exceed 30 consecutive calendar days and are intended to be temporary in nature.
Employees must meet the minimum qualifications of the higher-level position to serve in an acting capacity. Exempt bargaining employees are eligible to receive an acting capacity salary adjustment of 6% of their current base salary (Source: AFSCME Memorandum of Understanding (MOU), Article 8 – Wages and Salaries, Section 13 – Acting Capacity). Exempt non-bargaining employees are eligible to receive an acting capacity salary adjustment of up to 12% of their current base salary. At the end of the assignment, the employee returns to their prior position with the same salary and status as if the temporary assignment had not occurred.
An Administrative Increment is a temporary salary adjustment granted in response to an operational need or organizational necessity and must align with the employee’s demonstrated knowledge, skills, and abilities. Typically, an Administrative Increment is used when a vacancy or other staffing gap creates a need for an employee to assume additional responsibilities beyond those assigned to their regular position. In these situations, the employee is generally performing a portion; but not the full scope, of the duties associated with the higher-level vacant position(s).
An Administrative Increment provides compensation for temporarily assigned duties that are outside the normal scope of the employee’s position. These additional responsibilities are expected to be performed within the employee’s regular work schedule and do not constitute an interim appointment to the vacant role. Salary adjustments may be up to 12% at the discretion of the department, depending on the extent of the change. An administrative increment is for a period of up to six (6) months. Justifications to extend the period of the administrative increment or exceed the salary adjustment of 12% may be considered on a case-by-case basis.
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 non-teaching.
Teaching overload - Staff employees may be eligible for a stipend for teaching a catalog course if they meet the qualifications required of faculty. Teaching must occur outside of the employee’s regular work schedule and must not interfere with primary job responsibilities. Compensation must follow Office of the Provost guidelines.
Non-Teaching overload - Full-time Exempt staff may receive additional compensation for performing duties outside of their regular position. These duties should be in a different unit, college, or division and must be performed outside of regular work hours without interfering with primary job responsibilities. Administrative overloads are not intended for work that constitutes a higher-level position. Assignments are typically approved for up to six (6) months, with extensions reviewed on a case-by-case basis.
Forms and Templates
All official Classification and Compensation requests must be submitted through Workday. Optional forms, templates, and other resources are available to support departmental planning and internal review. These are aids for preparing a request, not a substitute for submitting one in Workday.