Classification and Compensation Foundations

1. Classification and Compensation Foundations

2. Housekeeping • Roster completed at end of class today • Break • Restrooms • Cell phones, pagers, text messaging • Evaluation sent to your e-mail address • Workshop counts as a requirement toward Pro3 certification—HR/Payroll Track • Do not need to do anything to get credit; it will be given automatically based on roster

3. Our Objective • To increase your understanding of the university’s classification and compensation structure for UF staff, with emphasis on: • Describing jobs accurately • Understanding options that are available to ensure employees are classified and paid properly

4. Today’s Agenda • To accomplish this, we will discuss various “building blocks” associated with a classification and compensation foundation: • Review the Fair Labor Standards Act • Overtime compensation • Explain UF’s classification system generally • Position classification vs. job description • Reclassification process

5. Today’s Agenda • We also will: • Discuss various pay mechanisms • On-call pay, “call-back,” etc. • Review additional employment and lump sum payment (for use in limited situations) • Along the way, we’ll introduce relevant classification and compensation terminology that is useful to know

6. In General … • Human resources (HR) is the function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals • At UF, HR functions include recruitment, classification & compensation, training & organizational development, benefits and retirement, employee and labor relations

7. Human Resource Services Recruitment & Staffing Administration & Institutional Equity & Diversity Baby Gator Benefits, Retirement & Leave Administration Class & Comp Employee Relations Training & Org. Development Academic Personnel Retirement Benefits

8. In General … • The Classification & Compensation Office partners with other HR offices—such as Recruitment and Staffing, Employee Relations, and Central Leave Administration—to ensure • Positions are classified appropriately • Employees are paid properly

9. What Is …? • A classification and compensation system: • Provides a basis of common understanding through a system of class titles • Is designed to help ensure that staff positions similar in duties and responsibilities are grouped together • Facilitates administration of funds allocated for wages and salaries in an equitable and legal manner

10. Why Is This Important?

11. Classification and Compensation System • Helps us maintain an “equal pay for equal work” policy—thus avoiding inequitable treatment of employees • Aids in recruitment by establishing meaningful qualification requirements and salaries • Aids in clarifying and improving organizational structure • Facilitates better employee-management relations by ensuring clarity about the expected job

12. Any Questions?

13. Building Block: Fair Labor Standards Act

14. Fair Labor Standards Act • The Fair Labor Standards Act (FLSA) prescribes standards for wages and overtime pay, which affect most private and public employment • It requires employers to pay covered employees (nonexempt) • Overtime pay of one and one-half times the regular rate of pay • At least the federal minimum wage

15. Minimum Wage(s)

16. Fair Labor Standards Act • When discussing the FLSA, the terms “non-exempt” and “exempt” are used frequently—and they are confusing to many people! • What do those terms mean? • In essence: They denote what the employer’s duty is with respect to the payment of overtime

17. Fair Labor Standards Act • “Exempt” • Employee is exempt from, or not covered by, the provisions of the FLSA that require the payment of overtime

18. Fair Labor Standards Act • “Non-exempt” • Employee is not exempt from these provisions of—and therefore is covered by—the FLSA • Must be compensated with overtime for hours worked beyond 40 hours in a workweek • May be referred to as “hourly”

19. Fair Labor Standards Act • What factors determine whether an employee is eligible for overtime? • Minimally, to be exempt from overtime, the employee typically: • Must be paid at least $455 per week regardless of the number of hours worked • And spend a significant portion of time performing the job duties that are considered Executive, Administrative, Professional, and/or Outside Sales

20. FLSA—Executive Category • Employee's primary duty is the management of a department or subdivision in which the employee is employed • Regularly supervises or directs the work of two or more full-time employees • Has the authority to hire or fire employees or whose recommendations are given significant weight in employment decisions

21. FLSA—Administrative Category • Employee: • Primarily performs office or non-manual work directly related to management or the general business operations of the employer • Exercises discretion and independent judgment in matters of significance • For example, someone who applies management policies

22. FLSA—Professional Category • Employee performs work primarily requiring advanced knowledge in a field of science or learning • The advanced knowledge must customarily be acquired by a prolonged course of specialized intellectual instruction • For example, doctors, lawyers, CPAs

23. FLSA—Professional Category • Alternatively, an employee could be classified as a professional if: • Primary duty is one requiring invention, originality, or talent in a field of artistic or creative endeavor

24. Computer-Related Exemption • Certain categories of computer employees— such as programmers, systems analysts, and software engineers—can be classified as Professional employees and can be exempt from overtime • Tests must be met such as application of system analysis techniques as well as design, development, and creation of computer systems or programs

25. At UF … • IT Entry—Non-exempt • IT Intermediate—Non-exempt • IT Practitioner—Non-exempt • IT Specialist—Non-exempt • IT Expert—Exempt • IT Senior—Exempt • IT Principal—Exempt

26. On a Practical Level, What Does the FLSA Require?

27. Fair Labor Standards Act • Employees in non-exempt classifications must account for all hours in the workweek • Non-exempt employees should leave their workstations during their regularly scheduled lunch periods • Conducting any job-related activity during scheduled lunch periods is time worked and must be recorded as such

28. Fair Labor Standards Act • It is a supervisor's responsibility to ensure that unauthorized overtime is not worked • Non-exempt employees' time records must be approved by the supervisor • In approving these entries in the Time & Labor, the supervisor verifies the accuracy of the recorded time worked

29. Overtime • Overtime is defined as work required beyond 40 hours in the workweek (not biweekly period) • UF’s workweek: Friday through Thursday • Paid leave such as vacation or sick time is not included in the calculation* *UPD exception per union contract

30. Overtime • At UF, non-exempt (hourly) USPS and TEAMS employees are paid for overtime work or compensated with overtime compensatory leave (up to 120 hours) • In the event of a disagreement, it’s the employee’s choice • Overtime worked must always be compensated via pay or compensatory leave at “time and a half”

31. Overtime Compensatory Leave • Upon reaching the 120-hour limit of overtime compensatory leave, employees must either: • Receive cash for additional hours of overtime worked or … • Use accrued overtime compensatory leave before receiving further overtime compensatory leave credits • Unused overtime compensatory leave must be used or be cashed out prior to the end of each fiscal year

32. Any Questions?

33. Regular Compensatory Leave • Full-time exemptUSPS employees required to work more than 40 hours in a workweek are eligible to earn regular compensatory leave on an hour-for-hour basis • Part-time exempt USPS employees earn regular compensatory leave when required to work more than their FTE • Maximum accrual: 120 hours of regular compensatory leave credits

34. Activity: Case Study

35. Building Blocks: Position Classification and Job Descriptions

36. Position Classification • Based on duties and responsibilities of the job and not on the qualifications of the individual • Provides a general description of responsibilities associated with job titles • Many employees may share the same classification • Described via classification specifications or “class specs” • www.hr.ufl.edu/class_comp/classification/default.asp • Indicated by job code

37. HR Representative “Class Spec”

38. Job Description • More detailed explanation of role • Each USPS and TEAMS employee has his or her own job description • Associated with position number

39. Pay Plans • A set of uniform pay practices for administering the university’s compensation program • Specify included classifications, leave and benefits eligibility, etc. • UF pay plans: University Support Personnel System (USPS); Technical, Executive, Administrative, and Managerial Support (TEAMS); Academic Personnel; Other Personnel Systems (OPS)

40. Salary Administration Plan • Known as “Salary Adm Plan” • Is used in the myUFL system to identify pay plan (USPS, TEAMS, Academic Personnel, OPS), pay type (hourly/nonexempt or annual/exempt), and employment characteristics such as benefits • There are typically several Salary Adm Plans associated with each general “Pay Plan”

41. How Do These Pieces Fit Together?

42. Let’s Make It Real! • Marienne is an HR representative working in the Leave Administration office • Her position classification is HR representative, which is indicated in the myUFLsystem with job code 000829 • There are other HR representatives in the Office of Human Resource Services • All of them have the same position classification as indicated by this job code

43. In the myUFL System

44. Let’s Make It Real! • Marienne has her own position number: 00007136 • She is the only person at UF with that position number

45. In the myUFL System

46. Let’s Make It Real! • Marienne also has her own job description based on the specific job she does in Leave Administration • It provides more detail than the class specification used to describe what HR representatives generally do (which we saw earlier)

47. Let’s Make It Real! • This position description is “on file” in the myUFL system • It can be viewed via Position Management to the Classification & Compensation Office by Marienne’s supervisor, Jennifer

48. In the myUFL System An Instruction Guide is at the back of yourhandout that explainsthis process in moredetail.

49. Let’s Make It Real! • Marienne is in the TEAMS pay plan because she was hired at UF after January 7, 2003 • The TEAMS pay plan defines her benefits and leave eligibility (among other issues) • There are some employees who are HR representatives that are in the USPS pay plan • With different benefits and leave eligibility • They are in the USPS pay plan because they were hired before January 2003 and did not elect to change to the TEAMS pay plan

50. Let’s Make It Real! • Jennifer, Marienne’s supervisor, is also in the TEAMS pay plan even though she has a different classification than Marienne • Jennifer’s classification is Human Resources, Coordinator 2 • She has a unique position number • But her job code, 001298, is shared with other Coordinator 2s in Human Resources