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Salary Basis Policy

Overview

The college compensation system for employees is used to provide fair and equitable compensation for the duties and responsibilities performed.

Definitions

Exempt: classification of employees that are paid a set level of compensation and are not eligible for overtime pay regardless of hours worked.   Also referred to as salaried.

Non-exempt:  classification of employees that are paid hourly and are eligible for overtime compensation if the total hours worked in a week are over 40.  Also referred to as hourly.

Training: learning and educational opportunities for skill or behavior development of the employee in their role and/or career.

Fair Labor Standards Act (FLSA): federal regulation that establishes minimum wage, overtime pay, recordkeeping an other employment standards.

 Responsibilities

Employee: to follow defined work schedules and meet performance expectations based on their assigned role and compensation structure.

Supervisor: communicate with employees regarding performance and schedule expectations and ensure expectations are consistently being met.

Talent, Equity, and Engagement Office: responsible for the development of and maintenance of equitable compensation structures across campus based on market data.

Policy Details

Some employees at Central are classified as exempt employees based on regulations outlined in the Fair Labor Standards Act (FLSA). These salary requirements do not apply to faculty, certain administrative, professional, and executive employees based on the current standards.

  1. Being paid on a “salary basis” means an employee regularly receives a predetermined amount of compensation each pay period on a weekly or less frequent basis.
      1. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee’s work.
      2. Subject to exceptions listed below, an exempt employee must receive the full salary for any workweek in which the employee performs any work, regardless of the number of days or hours worked.
        1. Exempt employees do not need to be paid for any workweek in which they perform no work.
        2. If the employee is ready, willing, and able to work, deductions may not be made for time when work is not available.
        3. Deductions from pay are permissible when an exempt employee is:
          1. Absent from work for one or more full days for personal reasons other than sickness or disability.
          2. Absent one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy, or practice of providing compensation for salary lost due to illness (sick or vacation plan options).
          3. Absent due to jury duty or military service to offset amounts employees receive as jury or witness fees, or for military pay.
          4. Absent due to suspensions of one or more full days imposed for workplace disciplinary action.
          5. Only employed for a partial week in the initial or terminal week of employment.
          6. Penalized for infractions of safety rules of major significance.
          7. Off work for unpaid leave under the Family and Medical Leave Act (FMLA).
          8. In the circumstances listed above, either partial-day or full-day deductions may be made.
  1. It is the policy of the college to comply with the salary basis requirements of the FLSA.
      1. The college prohibits all supervisors from making any improper deductions from the salaries of exempt employees.
      2. The college wants employees to be aware of this policy and that the college does not allow deductions that violate the FLSA.
      3. If you believe that an improper deduction has been made to your salary, you should immediately report this information to the Talent, Equity, and Engagement Office or the Office of Academic Affairs, as appropriate.
      4. The college encourages reporting of improper deductions. To that end, retaliation of any kind against anyone filing a complaint is prohibited.
        1. Any retaliatory conduct is a violation of this policy and individual(s) who engage in such behavior may be subject to sanctions and/or discipline, up to, and including termination from employment.
        2. Initiating a complaint will not affect a complainant’s employment, compensation, or work assignments.
        3. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, you will be promptly reimbursed.

Last Revision Date: 4/18/2024

Policy Owner: Talent, Equity and Engagement Office