Nonexempt Guidelines
Nonexempt Position Definition: Nonexempt positions are those that, because of the type of duties performed, the usual level of decision-making authority, and the method of compensation, are subject to coverage under the Fair Labor Standards Act (FLSA). Full time Nonexempt employees are normally required to work 40 hours a week and they must record and account for all hours and fractional hours worked. Nonexempt staff must be paid for all hours worked. Any hours that are worked in excess of 40 hours in a work week must be paid at a rate of time and one-half the regular hourly rate of pay.
Nonexempt Pay Scale: The pay scale for Nonexempt positions is developed and maintained by the University System of Maryland (USM). It is a market based structure with 16 grades. The midpoint of each grade is targeted to market averages of benchmark positions. The scale is reviewed biennially and market adjustments are made, as needed.
Nonexempt Vacancies & Positions
Nonexempt titles and job specifications are maintained and approved by the University System of Maryland (USM)
- Nonexempt job specifications represent the general level of work for a title. A clearer “functional” position description form must be developed to more accurately represent the specific roles and responsibilities. The minimum requirements/qualifications of the USM Nonexempt job specifications must be maintained. Once a title is chosen, the minimum qualifications that are assigned to this title will automatically populate in eTerp. A PDF must also include funding information, a position summary, and a description of the primary duties and responsibilities of the position along with approvals 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. The eTerp system is maintained by 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
- Appointment to a Nonexempt position is made at least at the minimum of the established salary range;
- Appointment to a Nonexempt position may be made within the delegated hiring official range, to appoint new Nonexempt employees within the first 20% of the established range for the position.
Procedures:
- Once a search is completed and approved, and prior to extending an offer, the hiring official will submit a Hiring Proposal in eTerp. 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 the University Human Resources Office.
- Requesting a “search waiver” is an exception and, if approved, is subject to specific salary guidelines. Contact the office of Compensation and Classification in UHR for more information.
New Hire Nonexempt Probationary Period
- An original probationary period is a trial period of work following original appointment to a Nonexempt job class at each USM institution.
- The probationary period for newly-hired Nonexempt employees is six (6) months. Upon successful completion of the original probationary period, the Nonexempt regular employee will be granted an additional 2.5% increase to the base salary. The salary increase is effective at the beginning of the pay period following successful completion of the probationary period).
- Exceptions include USM Police Officers, whose original and status change probationary periods are one year following completion of mandated training approved by the Maryland Police and Correctional Training Commission.
- Upon request by the appropriate administrator, an original probationary period may be extended by an additional six (6) months.
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 competitive promotional transfer to a job class in a higher pay range, the salary for a Nonexempt employee will increase by an amount equal to 6% of the employee’s current base salary. In the case where a 6% adjustment does not move the employee to the minimum of the new pay range, the employee will be moved to the minimum of the new Nonexempt range, resulting in a salary increase that will be greater than 6%.
- When an employee is promoted two or more pay ranges, the employee will receive a 12 % or the minimum of the new range.
- Upon successful completion of the promotional transfer probationary period, the Nonexempt regular employee shall be granted an additional 2.5% increase to their base pay.
- In the case of a lateral transfer to a job class in same range, the salary for a Nonexempt employee will remain the same
- The employee’s salary cannot exceed the maximum of the salary range.
- Employees will serve a three (3) month probationary period in the new position. Employees are not be eligible to receive a salary increase based on the completion of that subsequent probationary period.
Procedure
- Once a search, to fill a vacancy, 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 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 Classification for more information.
This policy establishes the guidelines by which the salary for a position in a job class is determined when the position is to be held by an individual eligible for reinstatement to USM service. This policy applies to reinstatements to all Nonexempt maintenance, office, service, and technical staff.
Salary upon Reinstatement
The institution’s Chief Executive or designee has the flexibility to authorize the salary for a position to be occupied by an individual eligible for reinstatement in keeping with the following provisions:
- Reinstatement to the same job class
- Upon reinstatement to a position within the same job class, the individual’s salary will not be less than the salary the individual held at the time of the most recent separation from USM service.
- Reinstatement to a job class with a higher maximum salary
- Upon reinstatement to a position in a job class with that has a higher maximum salary than the job class at the time of the individual’s most recent separation, the individual’s salary will not be less than the salary the individual held at the time of most recent separation from USM service, and no less than the minimum salary for the job class.
- Reinstatement to a job class with a lower maximum salary
- Upon reinstatement to a position in a job class that has a lower maximum salary than the job class at the time of the individual’s most recent separation, the individual’s salary will not be more than the salary received at the time of separation. The Chief Executive Officer or designee determines the individual’s salary within the range.
Reclassification (Reclass) actions are based on significant and substantial changes in the position’s primary duties and responsibilities or when organizational structures have changed. The changes have to 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.
- 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, changing it to another class at the same level/ within the same pay range/band and with a different title.
- It is the responsibility of the authorized requestor, such as a supervisor or hiring official, to submit a request for review and evaluation of the job duties of the position.
- >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 which describes how an individual position has changed. The following areas should be addressed: the title of the position, the 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 modifying an existing position description form in the eTerp system.
- The office of Classification and Compensation 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 Classification and Compensation.
- Job reclass decisions may be effective retroactive to the date the request for review was received in the office of Classification and Compensation.
Salary Setting
- In the case of a promotional reclassification to a job class in a higher range, the salary for a Nonexempt employee is typically set at an increase of 6% of the incumbent’s current base salary. In the case where a 6% increase does not move the incumbent to the minimum of the new higher pay range, the employee will be moved to the minimum of the new range. If an employee is promoted two or more pay ranges the employee will receive a 12% increase to the minimum of range.
- In the case of a lateral reclassification which is a move to a job class in same range, the salary for a Nonexempt employee will remain the same, and will not exceed the maximum of the salary range.
Reclass and Probation
- A regular employee who has served an original probationary period and whose position is reclassed will not serve a new probationary period.
- If the employee has not completed an original probationary period, and the position is reclassed, the employee will serve the remainder of the probation in the new job class and eligible for the 2.5% base pay increase.
Nonexempt Salary Structure
The University System of Maryland (USM) is composed of 12 distinct and complementary institutions, 2 Regional System, and 1 System Office united by the mission of advancing education, research and service. Each institution is responsible for the design of a Pay Administration Program for Nonexempt positions consistent with USM principles and as approved by the Chancellor.
The University System of Maryland Nonexempt:
- Is market based
- Is reviewed by the USM, with input from each institution, on a biannual basis
- May be adjusted periodically to reflect market variances
- Consists of 17 pay ranges
- The midpoint of each range is targeted to meet the market mean
- Follows a lead/lag philosophy
University of Maryland College Park publishes Nonexempt Pay Ranges with a “Delegated Hiring Authority” indicator. The University of Maryland College Park does not use Pay Range 1.
Nonexempt Salary Adjustments
Cost of Living Adjustments (COLA) are set by Maryland State Law and USM budget action and salary directives. All regular employees receive COLA as 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.
- Each year the University agrees to provide bargaining unit employees with merit increase funds, when available, that are equal and consistent with the merit increases granted to bargaining unit employees in the University System of Maryland Coalition Institutions as authorized by the General Assembly for such purposes and/or such increases as specifically directed by the Board of Regents through their annual Salary Guidelines.
- The merit increase percentage amount directed by the Board of Regents is consistently applied to eligible individual Nonexempt employees.
- When an employee’s salary is at, or above, the maximum of salary range, the employee may be eligible for a lump sum merit payment. This amount is not attached to base pay.
- An off cycle merit adjustment is available to those employees hired after January 1 and upon completion of at least six months of employment. Salary adjustments must follow merit pay guidelines of the current fiscal year.
- A retention increase may be approved for a staff employee who is considering external offers of employment. The retention may be either a counter offer or a pre-emptive offer.
- A counter-offer may be considered on an exception basis 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 University of Maryland College Park. The offer may match the external offer.
- A pre-emptive offer may be considered on a case by case basis if the supervisor of the employee has reasonable certainty that the employee is considering external employment opportunities.
- All proposed counter-offers must be discussed on a case-by-case with the office of Compensation and Classification before an offer is made to the employee. It must also be approved by the department head as well as the appropriate Vice President.
Criteria:
- The staff person must have a written offer from an external employer, or the department head must attest to having reasonable certainty that the staff person is being actively recruited and a preemptive action is necessary in order to avert the employee’s imminent departure. 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.
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 / department 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.
It is expected that an employee will occasionally perform duties above and below his or her grade or classification with increase/decrease in pay.
- With more frequency, and with an anticipated end date, a temporary assignment may be appropriate. A temporary assignment of additional duties or removal of duties is at the discretion of the supervisor and may not result in a change in title or compensation.
- If it is determined that adding or replacing job duties to an employee’s existing position on a temporary basis should be reviewed by the office of Compensation and Classification, an authorized requestor may submit the appropriate request, as outlined below. Job class reviews may be conducted for all temporary assignments/acting appointments that are expected to last more than thirty (30) consecutive calendar days.
- A regular Nonexempt employee who has been placed on temporary assignment/reassignment does not serve a probationary period.
Acting capacity 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, when a vacancy at the higher level exists, and/or when time or circumstances do not permit the immediate selection of a permanent appointment under established selection procedures.
- An acting appointment is used when an employee is appointed to a different position on a temporary basis where there is a vacancy that 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 higher-level position. - The period of the acting capacity may be extended beyond six months and up to twelve (12) months with the approval of the appropriate Vice President, in conjunction with the Assistant Vice President of University Human Resources.
- At the end of an acting appointment employees may 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
- If the acting appointment results in a temporary title change and salary adjustment, it is consistent with the policy on re-class promotion. For Nonexempt employees, the acting capacity appointment carries a temporary salary increase equivalent to the amount the employee would be entitled to if promoted/reclassified on a permanent basis, this is typically 6%. If the acting appointment is a pay range, that is two (2) or more pay ranges higher than the pay range of the employee’s normal appointment, the employee will receive a twelve (12) % increase or the minimum of the pay range, whichever is higher.
Procedure:
- An Acting appointment requests is submitted via hard copy forms. Detailed instructions and approvals required are found on the form.
- All Exempt and Nonexempt temporary salary additions require a central UHR approval in the PHR system following the standard unit/department approval. Prior to final approval in PHR, the actual request must have pre-approval from the Compensation Unit. This means electronic forms or e-mail messages must be routed through the appropriate approval levels, outside of PHR prior to the transaction receiving a final UHR approval in PHR.
- These types of transactions require approval from the appropriate Vice President or Dean.
- Questions concerning salary additions in the PHR system should be directed to AskHR.umd.edu.
Forms: