Compensation Procedures

9. Pay Adjustments

NORMAL CYCLE ADJUSTMENTS

Consistent with Policy 5-401: Staff Compensation, salary/wage increases, including performance-based increases, are generally given to staff as part of the annual budget cycle and implemented at the start of the fiscal year on July 1st.

Also following Policy 5-401: Staff Compensation, the University of Utah has an agreement with the federal government that salaries are set only once per year, on July 1st. This agreement means that an employee does not get a salary (ABA) increase when a grant is received, and an employee does not receive a salary (ABA) decrease when a grant concludes.

OFF-CYCLE ADJUSTMENTS

Adjustments made after implementation of the budget are considered to be off-cycle and must have the joint approval of department administration and the cognizant Dean/Vice President, or their designee.

Potential reasons for off-cycle increases include:

Transfers - as defined by University Policy 5-108, handled by Human Resources as a formal action for staff or by Academic Affairs for faculty.
Promotions/Reclassifications - handled by Human Resources as a formal action for staff or by Academic Affairs for faculty.
Internal/Market equity adjustments - must be substantiated by internal comparison and/or comparison to market/benchmark data.
Retention - in response to a competing offer.
Additional Responsibilities – based on a significant increase in responsibilities.

Exceptions 1-2 require HR approval and exceptions 3-5 require Cognizant VP approval.

Off-cycle salary adjustments are not based on merit or performance, and off-cycle salary increases should not be given based upon receipt of a sponsored award; an increase in an employee's full-time equivalent (FTE) is not considered a salary rate increase.

SPONSORED AWARDS

Federal Regulations and University Policy require employees (faculty and staff) be paid at the same salary/wage rate they were paid at prior to receipt of a sponsored award. Salary/wage increases should not be given based upon receipt of a sponsored award nor should salary/wage decreases occur after a sponsored award ends. Budgeted payroll costs on sponsored award proposals should be based on current employee salary/wage rates and should factor in reasonable pay increases aligned with Normal Cycle Adjustments (annual pay increases) that are consistent with departmental pay plans.

A reasonable pay increase generally means a pay increase similar to pay increases for employees not working on a sponsored award. Receipt of a sponsored award contract with a proposed higher salary rate for an employee does not take precedence over Federal Regulations or University Policy.

RESPONSIBILITY:

Supervisors, Directors and Department Heads

Responsible for conducting annual performance reviews for all staff as part of a merit-based salary program. See policy 5-141: Performance Management - University Staff (Other than UUHC Staff)

Prior to an off-cycle pay adjustment, responsible for:

Analyzing data and providing information to Human Resources and Cognizant VP with a written statement describing the circumstances surrounding the proposed off-cycle pay adjustment.
Ensuring there are funds available to support a proposed pay increase.
Preparing paperwork to implement an approved pay adjustment.

Human Resources, Deans and Cognizant VP

Responsible for:

Confirming and reviewing requests, and other compensation issues raised by departments.
Recommending solutions that promote pay equity.

Pay Differentials

Overtime/Compensatory Time

Contents

Compensation

Compensation Procedures

9. Pay Adjustments

RESPONSIBILITY:

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