Procedure No.:   40.039

Page No.:        1,2,3 and 4 of 4

Date Issued:     06/01/94

Issued By:       Gary North

PURPOSE:

This policy shall govern the administration of the pay plan for classified civil service employees. The administration of the pay plan is the responsibility of University Personnel Services.

It shall be the policy of Ohio University to compensate employees:

Without regard to race, color, religion, sex, national origin, age, veteran status, or disability status;
Relative to internal equity based upon the demands and requirements of jobs;

In a manner which maintains personnel costs within appropriate limits so as to insure the continued financial stability of the University;
In line with the labor market as defined by University Personnel Services survey data.

The policies and procedures established herein apply to all the classified civil service employees of Ohio University. These policies do not apply to faculty, administrators, or employees covered by any Collective Bargaining Agreement. These policies and procedures define the operation of the pay plan for the classified civil service and take precedence over any other understandings, implied or otherwise.

POLICY:

It is the intent of Ohio University to maintain a pay plan which:
Clearly defines the responsibilities of each job through written job descriptions;

Determines the relative value of each job based on differences in standardized compensable factors;

Establishes overall pay levels which are competitive in the defined market;

Complies with the Federal Wage and Hour laws and other applicable governmental statutes and regulations;

---

[Here begins page 2 of the hardcopy version.]

---

Promotes effective communication throughout the University with regard to pay plan policy;

Provides for a systematic, objective approach to pay for employees.

Communications

Information concerning job classifications and pay grades is made available to University employees through University Personnel Services upon request. Deans, Directors and Department Heads are encouraged to actively and openly communicate information relative to the pay plan to employees, particularly: the employee's job description and the duties and responsibilities involved, the pay grade for the job and the potential for growth within the pay grade.

Administrative Responsibility

The Ohio University Board of Trustees has the ultimate authority and responsibility for the University's overall compensation objectives, pay structures and policies. Major revisions to the compensation program must be approved by the Board when deemed necessary by the President of the University. Day-to-day administration of the compensation program is the responsibility of University Personnel Services (UPS) including:

Recommending new or revised personnel policies and procedures;

Preparing and maintaining job descriptions with assistance from employing departments;

Evaluating new jobs and reevaluating existing jobs on an ongoing schedule;

Auditing the pay structure to maintain market competitiveness and internal equity and properly assign jobs to pay grades;

Reviewing for compliance with Fair Labor Standards Act, Equal Employment Opportunity Commission, and other governmental regulations;

Maintaining appropriate pay records;

Maintaining a job evaluation plan to insure that all jobs are rated on a comprehensive set of compensable factors.

---

[Here begins page 3 of the hardcopy version.]

---

Pay Plan Structure

The University uses a pay grade structure to identify the appropriate pay limits for each job. The structure is based on internal equity and competitive market rates. The structure defines the minimum and maximum rates for pay grades.

The minimum amount of a pay grade is considered to be the fair value for a newly hired employee starting in the job. Thus, newly hired employees at Ohio University will normally be hired at the minimum of the pay grade. Any exceptions shall be approved the Director of UPS prior to posting the position.

The maximum of the grade is the upper limit of the pay for a job. An employee shall not be paid above the maximum of the grade for their job.

If for any reason an employee's pay is above the maximum of the grade for their job, the employee's pay shall be "red circled." This means that all forms of increases shall be withheld until the employee's pay is once again within the limits of the pay grade, at which time the employee will be eligible for future increases, up to the maximum of the pay grade.

UPS will issue to all departments an annual update of the pay grades reflecting the current minimum and maximum of each grade, and the pay grade assigned to each job.

Structure Movement

Subject to action by the Board of Trustees, the structure may be adjusted to reflect:

The movement of pay in organizations used to define the market;

The financial means of the University.

Employee Movement in Pay Grade

The Board of Trustees will also approve the increased amount to be given to employees. This percent of current rate adjustment will take into account the same criteria listed in Structure Movement above.

---

[Here begins page 4 of the hardcopy version.]

---

Employee Movement to New Pay Grade

Promotion or reclassification, involving movement to higher pay grade; shall provide for increases to the employee's base rate of pay as follows:

Five percent (5%) of the employee's current pay rate; or

The amount required to raise the employee's pay rate to the minimum of the new pay grade, if the above provision does not place the rate into the new pay grade.

The new pay rate may never exceed the maximum of the grade.

Voluntary demotion (e.g., applying for a position in a lower pay grade) will result in the employee's pay rate being reduced by 5%, or grade maximum of the lower pay grade, if the 5% reduction does not fall within the lower pay grade.

Involuntary reassignment or reclassification involving a movement to a lower pay grade will not result in a lower pay rate. The employee's pay rate shall be "red circled" if it is above the maximum of the new pay grade and all increases shall be withheld until the pay rate falls within the pay grade, at which time the employee will be eligible for future increases, up to the maximum of the pay grade.

Disciplinary reduction in a lower pay grade shall result in a 10% reduction. In no case should this result in a rate of pay less than grade minimum, nor greater than grade maximum.

Movement to a new job within the same pay grade does not warrant any change to the employee's pay rate.

Recognition of Service Award

The University values the continued good service of its employees. To recognize the employee's commitment to Ohio University, a long-term service award plan has been established.

Beginning with the calendar year 1992, employees will receive a cash award concurrent with the pay during which every fifth-year anniversary date falls. Anniversary dates are based on continuous Ohio University service. Payment of the service recognition award will be based on five-hundred dollars for every five (5) years of service, i.e., $500 at five years, $2,500 at twenty-five years, and so on.

Dick Piccard revised this file (http://www.ohiou.edu/policy/s40-039.html) on March 27, 2008.

Please E-mail any comments or suggestions to "policy@ohio.edu".