UMGC Policy on Pay Administration for Nonexempt Staff Employees

(Approved by USM BOR on April 21, 2017; UMGC President on July 1, 2017)

1. Purpose and Applicability

   As established in the USM Nonexempt Pay Program, under this policy, University of Maryland Global Campus (UMGC) employees may be eligible to receive salary increases for the following reasons: Cost of Living Adjustments (COLA); salary increases based on performance (Merit Pay); salary structure adjustments; completion of certain probationary periods; promotion, reclassification and other purposes as designated by the Chancellor. This policy also establishes the timing and basis for granting multiple adjustment increases and non-cumulative cash bonuses. This policy applies to Nonexempt Staff employees on Regular Status and Contingent Status employees, when awarded. Nonexempt Staff employees who are included in the representation of the collective bargaining unit are subject to the Memorandum of Understanding (MOU) and applicable UMGC HR Policies; where there is a conflict between the two, the MOU will prevail.

2. Definitions

   For purposes of this policy the following terms and definitions shall apply.

   1. Lateral Transfer: An employee's move to a position with the same Pay Range. Lateral transfers may occur within or across UMGC organizational Departments/Units and within or across USM Institutions.

   2. Promotion: An employee's move to a position rated at a higher Pay Range than the Range of the current position, or

   3. Demotion: An employee's move to a position with a lower Pay Range than the Range of the current position.

   4. Reclassification: The action of changing the Job Class assignment of a position by raising it to a higher Job Class or Pay Range, reducing it to a lower Job Class or Pay Range, or changing it to another Job Class at the same Pay Range. See also VII-9.70-GC – UMGC Policy on Requesting a Position Classification Review for Nonexempt Staff Positions.

   5. Reinstatement: The return of a former Regular Status employee to UMGC employment within three (3) years following a period of separation from the UMGC/USM and/or State Employment. See VII-1.31-GC – UMGC Policy on Reemployment and Reinstatement.

   6. Re-employment: The return of a former Regular Status employee to UMGC employment after a period of separation from the UMGC/USM and/or State employment greater than three (3) years

3. Salary Upon Entry Into UMGC Service

   1. Entrance Into Service of a New Employee

      Appointment to any UMGC Nonexempt position shall be made at least at the minimum of the Pay Range for the job class to which the position is assigned. The salary for part-time appointments shall be prorated according to the employee's FTE percentage.

   2. Appointments Above Minimum

      The Chief Human Resources Officer (CHRO) or designee may authorize a salary above the minimum of the Pay Range but within the maximum of the Pay Range for the job class for any of the following criteria:

      1. A demonstrated and documented inability to attract a pool of qualified candidates;

      2. Rejection of an offer of employment at the minimum pay rate for the position by the UMGC's top candidate(s); or

      3. Other circumstance that is documented and approved by the CHRO or designee.

4. Salary Upon Reinstatement

   The CHRO or designee shall have the flexibility to authorize a salary upon Reinstatement of an individual in keeping with the following provisions:

   1. Reinstatement to a Job Class with the Same Pay Range

      Upon Reinstatement to a position in a Job Class with the same Pay Range as the individual's Job Class at the time of the most recent separation, the individual's salary shall be no less than the salary held at the time of separation from UMGC/USM service.

   2. Reinstatement to a Job Class with a Higher Pay Range

      Upon Reinstatement to a position in a Job Class with a higher Pay Range than the individual's Job Class at the time of separation, the individual's salary shall be no less than the salary held at the time of separation from UMGC/USM service, as well as no less than the minimum of the Pay Range for the Job Class.

   3. Reinstatement to a Job Class with a Lower Pay Range

      Upon Reinstatement to a position in a Job Class with a lower Pay Range than the individual's Job Class at the time of separation, the individual's salary shall be no more than the salary held at the time of separation, unless the salary falls below the minimum of the lower Pay Range. The CHRO or designee shall determine the individual's salary within the Pay Range.

5. Salary Upon Re-employment

   Any former employee returning to UMGC service on a Re-employment basis shall re- enter as a new employee, as described in Section III above.

6. COLA

   All Regular Status Nonexempt Staff employees shall receive COLA increases as appropriated by the Maryland General Assembly.

7. Performance Based Salary Increases - Merit Pay

   1. Provided funds are available, it is the policy of UMGC that employees who consistently meet the standards of performance for their positions shall receive performance-based salary increases (Merit Pay). These increases normally shall be effective on July 1, as appropriated by the Maryland General Assembly.

   2. Salary increases shall be administered as follows:

      Employees who have completed an original probation period and who on an overall basis meet the standards of performance throughout the evaluation period shall receive a minimum of two and a half percent (2.5%) increase.

8. Salary Structure Adjustments

   In the event that the salary structure is adjusted, employees' salaries shall be adjusted to the minimum of their Pay Range according to VII-9.10-GC – UMGC Policy on the Pay Program for Nonexempt Staff Positions.

9. Completion of Probationary Period

   Upon successful completion of an original or a promotional probationary period (not for a probationary period because of a lateral transfer), Nonexempt employees shall receive a two and a half percent (2.5%) salary increase effective at the beginning of the pay period following successful completion of the probationary period.

10. Salary Upon Promotion, Transfer or Reclassification

    1. Salary Upon Promotion or Reclassification

       1. Promotion

          Upon promotion, the salary for an employee shall increase at least six percent (6%).

       2. Reclassification to a Higher Pay Range

          Upon a Reclassification to a higher Pay Range, the salary for an employee shall increase at least six percent (6%).

    2. Salary Upon Lateral Transfer

       The employee's salary shall remain the same.

    3. Salary Upon Demotion or Reclassification to a Lower Pay Range

       Upon Demotion or Reclassification to a position with a lower Pay Range, the employee's salary shall be within Pay Range of the position to which the employee was Demoted or Reclassified. However, the employee's salary shall not be changed unless the Pay Range maximum for the position to which the employee was Demoted or Reclassified is lower than the employee's salary prior to Demotion or Reclassification.

11. Within Pay Range Salary Increase

    An employee's salary may be increased at any time to meet documented critical business needs (e.g., massive turnover, market driven, supply/demand). The appropriate administrator shall submit a written request to the CHRO or designee along with a justification for the adjustment. The CHRO or designee shall review the request, confer with the President, and take action as appropriate.

12. Salaries Exceeding the Maximum of the Pay Range

    The CHRO or designee may authorize a salary that exceeds the maximum of the Pay Range in order to accommodate a salary adjustment, as described in Section VII, above. Any such authorization shall be done in consultation with the President.

13. Reporting of Salary Increases

    Consistent with the Chancellor's Salary Guidelines for each fiscal year, UMGC may be required to make specified periodic reports of designated salary increases.

14. Priority for Processing Simultaneous Pay Transactions

    When two or more pay transactions occur simultaneously, the order of the processing shall be:

    1. First, Salary Structure adjustment, if involved;

    2. Second, Cost of Living Adjustment (COLA), if involved;

    3. Third, Merit adjustment, if involved; and

    4. Fourth, any other transaction such as Promotion, Reclassification, etc. shall increase at least six percent (6%).

15. Non-cumulative Cash Bonuses

    1. A bonus is defined as a lump sum non-cumulative cash award that may be granted to a Regular Status Nonexempt Staff employee for an extraordinary contribution that substantially benefits UMGC. Bonus payments shall not be counted as part of base salary and there is no guarantee of a bonus payment.

    2. The bonus pool shall be determined within the guidelines established by the USM Chancellor as part of the annual salary review process. The UMGC President or designee shall establish criteria for bonus eligibility, review and approval, and amount of bonus awards. 

Implementation Procedures

The UMGC President has designated the Chief Human Resources Officer (CHRO) to administer this policy; to develop procedures as necessary to implement this policy; to communicate this policy to the UMGC community; and to post the policy and any applicable procedures on the UMGC website.

Replacement for:

• USM BOR VII-9.20: Policy on Pay Administration for Regular Nonexempt Staff Employees