Compensation Policies
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The following policies supersede all compensation policies and statements previously issued. These pay policies and practices are to help ensure that The University of Alabama complies with all Federal, State and Local legislature pertaining to pay. All personnel actions that involve the establishment or change in compensation are subject to the review of the Department of Human Resources and the appropriate University of Alabama Vice President and/or President.
Compensation Philosophy
The University of Alabama will seek to establish and maintain a system of compensation and benefits that, with reasonable availability of resources, is equal to or greater than total compensation in comparable labor markets for similar services being performed.
Pay Policies and Practices for those in the Staff Pay Structure |
| Pay Policies and Practices for those in the Maintenance Pay Plan |
| Other Pay Policies and Practices |
Pay Policies and Practices for those in the Staff Pay Structure
The hiring official should determine an appropriate starting pay rate based on the candidate’s experience and skills, existing pay rates for current employees and the availability of funds. For candidates who are current employees, consideration needs to also be given based on whether the hiring action will be a promotion, lateral transfer or demotion for the employee. Specific guidelines related to each of these situations are defined in the next few sections. For recommendations above the 1 st quartile of the appropriate salary range the following factors should be considered: (1) qualifications of the candidate; (2) number of qualified candidates in the pool (3) cost and length of time associated with the recruiting campaign and (4) relevant salaries of other employees with the same job title and/or in positions within the same pay grade who possess similar qualifications as the candidate.
The hiring official may decide, if appropriate, to start a candidate at a rate of pay that is less than the approved amount stated in the recruitment documentation, but, not less than the minimum of the salary range for the position. In these instances, the hiring official has the option of increasing the employee’s rate of pay after the employee successfully completes their introductory period, which is usually no longer than six months in duration.
Giving a post-introductory period pay increase is at the discretion of the hiring official; however, it should be approved by the appropriate dean, director or department head at the time the initial offer is approved. It should be clearly communicated to the candidate that they may be eligible for a post-introductory pay increase based on job performance, but a pay increase is not guaranteed.
| Approval Level | Starting Pay |
| Supervisor | Minimum to 1st Quartile |
| Dept Mgr/Director/Dean | 1st Quartile to Midpoint* |
| Vice President | Midpoint - 3rd Quartile** |
| President | 3rd Quartile - Maximum** |
Since roles and titles vary from division to division, the Vice Presidents shall determine the appropriate approval level for each hiring official in their area.
* For departments in Academic Affairs, approval from the Assistant Academic Vice President for Administration is required to hire above the 1 st quartile of the salary range. For departments in Student Affairs, approval from the Assistant Vice President for Student Affairs is required to hire above the 1 st quartile of the salary range.
** A recommendation from the Department of Human Resources should be obtained prior to obtaining approval from the Vice President or President.
All promotions (moving up one or more grades) should result in a salary increase of at least 5%. The appropriate increase should be determined by the hiring manager but it should not exceed the greater of 15% or the top of the first quartile.* Any promotional increase above the recommended guidelines require approval of the appropriate Vice President and/or President with a prior recommendation from the Department of Human Resources.
* For departments in Academic Affairs, approval is required above the 1 st quartile from the Assistant Academic Vice President for Administration. For departments in Student Affairs, approval is required above the 1 st quartile from the Assistant Vice President for Student Affairs.
No increase in pay is recommended. Requests for salary increases must be approved by the appropriate Vice-President with a prior recommendation from the Department of Human Resources.
Demotions are discouraged in normal situations. Consideration for pay as it relates to transfers to a lower pay grade will be handled on an exception basis by the department head, the Department of Human Resources and the appropriate Vice President.
Effective Dates of Reclassification
The effective date of a reclassification will be at the beginning of a pay period following the reclassification date.
Pay Policies and Practices for those in the Maintenance Pay Plan
Candidates should be hired in at the established Entry Rate or Job Rate (if no entry rate exists) for that job. For those hired in at the established Entry Rate, their rate of pay should be increased after meeting all criteria to qualify for the Job Rate. It should be clearly communicated to the candidate that in certain jobs they may be eligible for a pay increase based on established criteria but it is not a guaranteed pay increase. The hiring official may request to hire a candidate at the Job Rate rather than the Entry Rate based on the qualifications of the candidate but such requests should have prior approval by the Department of Human Resources.
Job Movement within the Maintenance Pay Plan
When an employee moves up the pay hierarchy into a new position, the employee should be paid the established single rate for the new position. Exceptions to this apply to promotions to Level IIIB positions in the skilled trades and promotions to Team Leader promotions in the Custodial and Grounds Career Ladders. In these situations, employees should receive the applicable Level IIIB or Team Leader rate or a 5% increase, whichever is greater. If the individual does not perform satisfactorily in the new position and the decision is made to return the employee to their former position, the employee should be paid the established single rate of the position to which they are demoted.
When an employee moves to a position that is lower in the pay hierarchy, the employee should be paid at the established single rate for the lower level job.
Other Pay Policies and Practices
Market Adjustments (no change in duties/responsibilities)
With prior approval from the appropriate Vice President, departments may make recommendations to the Department of Human Resources for market pay rates or ranges to be developed for certain positions. Consideration will be given to market adjustments for the following reasons:
- Documented recruiting difficulties have been experienced;
- Market salary fluctuations necessitate an adjusted pay rate or pay range; or
- Market adjustments necessary to address the retention of qualified individuals.
It is the policy of The University of Alabama to pay shift differentials to non-exempt employees who work evening and night shifts on a regularly scheduled basis. Effective September 24, 2006, the appropriate amounts are $.40 per hour for evening shifts and $.55 for night shifts. All eligible employees should be paid a shift differential for the entire shift for work performed on the evening or night shift. Shift differentials for eligible employees are also paid during all periods of paid leave, such as holidays, sick leave or annual leave.
For the purpose of applying shift differentials, shifts are defined as follows:
- Day shift (first shift) is the shift where 50% or more of the regularly scheduled hours are worked between 6:00 a.m. and 6:00 p.m.
- Evening shift (second shift) is the shift where 50% or more of the regularly scheduled hours are worked between 6:00 p.m. and 12:00 midnight.
- Night shift (third shift) is the shift where 50% or more of the regularly scheduled hours are worked between midnight and 6:00 a.m.
In any case, where the hours are evenly divided (50% on each shift), priority for determining shift differential rates should be given in the order of (1) night shift, (2) evening shift and (3) day shift. Example: If an eight-hour shift begins at 2:00 p.m. and ends at 10:00 p.m., the appropriate differential rate for the entire shift would be that of the evening shift. In cases where the regular shift consists of more than eight (8) hours of work, shift differential will be paid if at least four (4) of those hours fall within the night or evening shifts, as specified above; however, in cases where less than half but at least four (4) hours of the shift are worked during nights or evenings, the maximum number of shift differential hours paid will be eight. The only exception to paying more than eight (8) hours at the shift differential rate would be when more than eight (8) hours are actually worked during the night or evening shifts.
When overtime has not been scheduled in advance, and non-exempt employees are called back to work after their regularly scheduled hours or on their off days, they should be paid a minimum of four (4) hours at their overtime rate or the actual overtime hours worked, whichever is greater, and will be paid as such for each call-out.
When non-exempt employees work a special event which is held outside of their scheduled work hours*, they should be paid at their overtime rate for the time actually worked at the special event. Examples of these events include, but are not limited to, athletic events, events at the Bryant Conference Center and special events for Admissions.
*Departmental supervisors and managers may modify employee work schedules in order to meet the business needs of the department.
There are situations when non-exempt employees are expected to be available via phone or beeper for work related emergencies. The Department of Human Resources will make the determination based on information provided by the department if this time should be considered hours worked and, therefore, compensable time.
If hourly paid employees are required to be on-call but it is not considered to be compensable time (as determined by the Department of Human Resources), the department may, but is not required to, pay the employees a set rate of remuneration as recommended by the department and approved by HR and the appropriate vice president. If hourly paid employees are called into work, the employees should be paid using the guidelines for Call-Out Pay as defined above.
If hourly paid employees are required to be on-call and the time is determined by the Department of Human Resources to be compensable, employees will be paid for any hours they are required to be on-call at a predetermined on-call rate as recommended by the department and approved by HR and the appropriate vice president. If hourly paid employees are called into work, the employees should be paid using the guidelines for Call-Out Pay as defined above.
Once employees report to work, all on-call pay will stop. Employees may not receive payment for working or any paid leave time and on-call pay for the same hours.
All non-exempt employees are required to complete timesheets and accurately record all time worked and leave taken. Timesheets are the basic source of information for payroll purposes; therefore, time worked must be reflected accurately. Falsification of timesheets is a serious offense and can result in disciplinary action up to and including termination. Timesheets should be checked by supervisors and department heads for accuracy. No changes, corrections, or notations are to be made on the timesheets except with the written approval and signature of a department head or supervisor. Specific questions regarding completion of time records for non-exempt employees should be directed to the Human Resources Service Center. It is the responsibility of the Human Resources Service Center to make the final determination on how to accurately record hours worked.
Other Staff Compensation Related Policies available on the HR website:
- Policy #601.00: Compensation for Non-Exempt Employees Who Work During University Closings
- Policy #602.00: Overtime and Compensatory Time for Non-Exempt Employees
- Supplemental Compensation Policy
Procedure for Reporting Errors in Pay:
If an employee believes an error has been made in their pay (either an underpayment or overpayment), the employee should immediately report this to their supervisor. Upon confirmation of the error, the supervisor should provide updated information to the Human Resources Service Center. Any confirmed errors in pay will be corrected on the next scheduled payroll cycle.