University of Maryland Policy and Procedures on Salary Administration for Regular Exempt Employees

The UMD Policy and Procedures on Salary Administration are companion to the University System of Maryland VII-9.11 “Policy on Pay Administration for Regular Exempt Employees,” implemented as a core policy of the University System of Maryland Exempt Pay Program, effective 2/27/2000. These policies affect regular employees who perform professional duties that are executive, administrative, and/or managerial in nature, and as such are categorized as “Exempt” under the Fair Labor Standards Act. Members of the faculty, and officers of the institution, as defined by the Board of Regents Policy VII-1.00 “Policy on Establishment and Assignment of Job Groups” are exempted from this policy.

The University of Maryland Exempt Pay Program is market-based, and as such, is intended to improve the university’s competitive position in recruiting and retaining high caliber employees through flexible salary administration policies and procedures. The salary structure for the College Park campus shall be a broad-banded structure with five wide, overlapping pay bands. The salary structure may be adjusted periodically to reflect market variances, as necessary.

University of Maryland, College Park:

*Structure approved by BOR and effective 7/13/2014-6/30/2016

Exempt positions shall be placed into pay bands based on individual reviews of each job’s essential duties and responsibilities, its defined market value, and its relative position within the institution’s organizational structure. Jobs that cannot be matched to the market shall be “ranked” relative to comparable positions at the university using a whole job comparison approach. There will be no salary adjustments as a result of the Exempt Pay Program implementation.

Salary Administration Procedures

1. Establishment of Positions
   1. In order to establish a new Exempt position, a new position description (PD) form shall be submitted to the University Human Resources Office of Employment and Compensation. The PD shall provide information regarding the purpose of the position, a synopsis of the duties and responsibilities, and the minimum requirements/qualifications of the position. The position description form shall provide funding information and the approval signatures of the appropriate authorities, to include the responsible Vice President or designee, or in the case of units that report directly to the President, the signature of the President or President’s designee.
   2. University Human Resources shall maintain a position information database comprised of market salaries for all positions in the Exempt category on the College Park campus, with internal comparability data. The position-specific information will be shared with the authorized requestor during the period of consultation with the UHR representative that precedes the posting/advertising of the position. Surveys that will be utilized for determining market salaries may include the College and University Professional Association for Human Resources (CUPA- HR) and/or other established market salary surveys, as appropriate for the position.
   3. The Director of University Human Resources shall notify the college or departmental representative of the appropriate assignment of the requested position, including the position title, assigned Pay Band, and a salary target range relative to the market for the position (see 2.A.1, below). A copy of the notification will be provided to the respective Vice President’s Office. In the case of units reporting directly to the President, a copy of the notification shall be provided to the President or President’s designee.
      
      In any case where the Vice President does not concur with the recommendation of the Director of University Human Resources, the Vice President will review the issue with the President, who will render a final decision.
   4. For those positions with Associate and Assistant Vice President, Associate and Assistant Provost, and Associate and Assistant Dean, and other key executive positions designated by the President, the respective Vice President or designee shall recommend the position title, appropriate pay band, and target salary to the Director of University Human Resources. In any case where the Director of UHR does not concur with the Vice President’s recommendation, the Vice President will make a final determination and notify the Director of UHR of the decision in writing.
      
      In the event that the aforementioned position has a direct reporting relationship to the Vice President rendering the decision, the recommended action will be reviewed and approved by the President.
   5. For positions established at Pay Band 1, the minimum qualifications shall include a substitution clause for the baccalaureate degree requirement stating “a baccalaureate degree or an equivalent combination of education, training, and experience.” Experience may be substituted on a year for year basis.
      
      Positions established at Pay Band 2 and above will 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 Director of University Human Resources.
2. Determination of Salary for Exempt Positions
   1. New Hires
      
      A “new hire” is considered to be one that is the result of a search and selection process, regardless of whether the individual comes from within or outside the University of Maryland. For purposes of fiscal stewardship, salaries must be established based on the following: (1) prevailing market wages for the specific position according to established institutional market salary surveys (see 1.B., above); (2) salaries for comparable positions at the institution; and (3) the level of education and experience and skills of the individual recommended for the position.
      1. “Target Ranges” will be established for starting salaries. UHR shall benchmark each Exempt position against the market, and a market mean (average) salary will be identified for the position. The target starting salary range maximum for new hires shall be the market mean (average) for the position, and the minimum shall be 20% less than the market mean. For example, a position with a market mean salary of $65,000 shall have a target hiring salary range of $52,000 to $65,000.
      2. The authorized requestor shall consult with UHR regarding target ranges and appropriate starting salaries, prior to posting/advertising the position. For hires of candidates currently within university service (“internal”), involving similar or comparable positions with a similar or lower target range, see 2.D., below.
      3. Requests for salaries that deviate from these guidelines must be submitted to the respective Vice President or President, as appropriate, for approval. The Vice President shall review the request with the Director of UHR prior to approving the salary. In any case where the Vice President does not concur with the recommendation of the Director of UHR, the Vice President will review the issue with the President, who will render a final decision.
   2. Change in Duties/Reclassifications
      1. When there is a significant change in duties causing an increase in the level of skill, effort and responsibility required to fully perform a job, a “within band salary adjustment” may be warranted. If the focus of the position has changed significantly, it may be re-titled. If the job requires a significantly stronger skill set and the duties and responsibilities have increased to a higher, more complex level, it may be assigned to a higher pay band.
      2. In the case of a within band salary adjustment or a reclassification, the market mean will be used as an appropriate target to set the incumbent’s salary. The authorized requestor shall have the authority to establish a salary at not more than 112% (a 12% increase) of the incumbent’s current base salary (an incumbent’s current base salary does not include any increment for acting status.
      3. Requests for a change to a position, reclassification or for a salary increase that exceeds these guidelines must be submitted through the appropriate Vice President or President. The Vice President or President will consult with the Director of University Human Resources prior to approving the salary.
   3. Acting Appointments
      1. In order to meet urgent needs, it may be necessary to appoint a person to an Exempt position in an acting capacity. Designating an employee to an acting capacity status is justified only when time or circumstances do not permit the immediate selection of a permanent appointment under the established selection and appointment procedures for Exempt staff. The appointment in an acting capacity to an Exempt position should not exceed a period of six months, under normal circumstances. Exceptions may be granted only by the responsible Vice President or President, in conjunction with the Director of University Human Resources.
      2. The following conditions apply to acting capacity appointments:
         1. An employee in acting capacity shall meet the minimum academic and professional qualifications for the position to which he or she will be appointed on an acting basis.
         2. Acting capacity appointment can be made only to a regular Exempt position.
         3. An acting capacity appointee will normally receive a salary adjustment for the appointment. Appointment of a current employee to an acting capacity status position of the same or higher pay band shall carry an increment of up to 12% of the current base salary.
         4. Requests for acting capacity shall be initiated with the completion of an Acting Capacity Request Form, which must be supported by the unit and the responsible Vice President, to UHR for review and consideration.
   4. Lateral Transfers and Demotions
      
      An Exempt employee may compete for any Exempt vacancy. If selected for a position that is in the same pay band, with a similar target range as the position currently held, then it will be considered a lateral transfer and will result in no change to the employee’s base salary. If the new position has a lower target range in the same pay band or is in a lower pay band, the appointment shall be considered a voluntary demotion and there will be no increase in salary.
   5. Salaries Exceeding the Maximum of the Pay Band
      
      A Vice President or the President, in consultation with the Director of University Human Resources, may authorize a salary that exceeds the maximum of the band in order to meet institutional needs.

This policy, VII-9.11(A) UMCP Policy and Procedures on Salary Administration for Regular Exempt Employees (2/27/2000), replaces Policy VII-4.00(B) “UMCP Policy for Establishing Salary Ranges of Associate Staff Positions and the Salaries of the Occupants” (5/9/1994) in its entirety.