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Compensation Administration Terms

Definition of Commonly Used Terms:

  • Demotion refers to a change of status from one position to another position of a lower pay level; one type of demotion is reclassification of a position to a lower level.

  • Exempt is a position not subject to the provisions of the Fair Labor Standards Act (FLSA) with respect to minimum wage and overtime. Exempt positions include most professional, administrative, executive and outside sales representatives. These positions are paid on a salary basis.

  • FLSA refers to the Fair Labor Standards Act, which is the federal law enacted by Congress in 1938 that sets minimum wage, overtime pay, hours of work, equal pay for equal work, record keeping, and child labor standards for employees who are covered by the Act.

  • Job ID refers to job family assigned to a position.

  • Maximum pay rate is the highest wage that an employing org unit may pay an employee for a position within a given pay level after the 90-day provisional period.

  • Minimum pay rate is the lowest wage that an employing org unit may pay an employee for a position within a given pay level.

  • NIFES which stands for Nine Factor Evaluation System, is the point-count method used to evaluate clerical and service positions.

  • Non-exempt positions are subject to all of the provisions and regulations of the Fair Labor Standards Act, including the minimum wage and overtime pay requirements. These positions are paid on an hourly basis.

  • Pay rate refers to the regular hourly rate paid to an employee.

  • Position is a group of specific duties, tasks, and responsibilities assigned to be performed by one employee.

  • Position classification is a method of organizing and grouping positions so that the similarities and differences among them can be identified and evaluated. Position classification results in the assignment of a position title and pay level to a particular position or group of similar positions.

  • Position ID refers to the number assigned to a position.

  • Promotion refers to a change of status from a position at a lower staff classification or pay level to a position of a higher pay level; one type of promotion is reclassification of a position to a higher staff classification or pay level.

  • Reclassification refers to a change in the status of a position by raising it to a higher level, reducing it to a lower level, change in title, change in org unit relationship, or change in employee subgroup on the basis of significant changes in the kinds of tasks and responsibilities performed or because of an amendment to the classification plan.

  • Regular employment refers to those continuing indefinite positions that are occupied 50 percent or more of a workweek for a 12-month period. (The percent changes for periods of fewer than 12 months.)

  • Regular pay means the employee's hourly rate of pay exclusive of extra pay, such as shift differential, overtime, etc.

  • Temporary employment refers to those positions that do not meet the regular employee definition. All student employees are temporary employees.

  • Transfer refers to a change in position from one org unit to another org unit.

  • Workweek is a regularly recurring work period of 168 hours in the form of seven consecutive 24-hour periods beginning at 12:01 a.m. Monday and ending midnight on Sunday. May vary by org unit.