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LeadingEdition: E-Newsletter for Purdue University Supervisors

Compensation mythbusters

Below you�ll find a few compensation myths listed. You may not have known that these statements aren�t true, and that�s okay. This article is being written to explain the truth behind the myths.

Myth: If exempt (monthly-paid) staff members are out of the office for more than two hours for activities not related to their work, they should file a Form 33 and take a half-day of sick or vacation time.

The truth: The Fair Labor Standards Act (FLSA) tells us that for any kind of leave other than Family Medical Leave, exempt staff in public agencies should not record any absences of less than half a day. Purdue policy complies with this regulation. (C-46)

bullet Supervisors aren�t complying with the intent of the FLSA when they tell employees to round up two hours to a half a day. The truth is that if an exempt employee is gone for less than half a day, the absence should not be tracked or recorded.
bullet Remember that supervisors have the right to expect exempt staff to be available during scheduled hours and the right to require exempt employees to request permission to be gone from their workstations.

Myth: When exempt staff members work extra hours, they can take an equal number of hours off on a different day to make up the difference.

The truth: Exempt employees are paid fixed salaries regardless of the hours they work.

bullet It is expected that there will be minor variations in the hours exempt employees work. These minor variations do not affect pay and should not be recorded in increments of less than half-days.
bullet While exempt employees can, with supervisor permission, adjust their schedules to account for periods of extra work, the adjustments should not be on an hour-for-hour basis, and they should not be tracked.

Myth: Exempt employees can use �comp time� to cover absences.

The truth: There is no �comp time� for any staff group at Purdue University. Exempt staff may not �bank� extra hours worked to cover time taken off later.

bullet There are only two instances when exempt staff should track hours.

� Hours can be tracked for effort reporting or for billing purposes.

� If an exempt employee is on FMLA leave, absences related to the leave may be tracked by the hour.

Myth: Part-time staff members don�t get holidays.

The truth: All benefits-eligible employees (both exempt and nonexempt) at Purdue University receive holidays.

bullet Part-time benefits-eligible employees receive holidays in proportion to their FTE.
bullet Temporary employees do not receive holidays.
bullet Non-exempt employees should receive holiday pay in accordance with Purdue policy. When work is required of a regular employee on a University holiday, the actual number of hours worked are paid at the overtime rate and the normally scheduled hours for the holiday are reported for regular holiday pay.
bullet Exempt employees do not receive extra pay for working holidays.

Myth: If employees see someone working in a job that they think is similar to theirs, their pay should be almost exactly the same as the other person�s pay.

The truth: Pay equity is determined by the interactions of many factors.

bullet Positions at Purdue are grouped into broader job categories based on similar work-related criteria. These broader categories contain several different levels of similar work.
bullet A range of pay can exist within each category based on level of responsibility; based on incumbent characteristics such as length of service, educational background, previous work experience, performance; and based on initial offers and availability and amount of annual merit increases.
bullet Picking specific individuals with whom to compare salaries often results in a distorted picture. If an employee has concerns about salary equity, the department should contact Compensation for assistance in performing a broader salary analysis that includes all similar positions and that considers departmental equity issues as well.

If you�ve heard something about compensation and you wonder whether it�s true or just a myth, send an e-mail with the information. We�ll let you know, and we�ll write another article debunking more compensation myths!

- Compensation Team

Gold rule

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LeadingEdition is an electronic newsletter for Purdue University supervisors.  It is produced and distributed by Purdue University Human Resources four times annually.  If you have questions, comments or suggestions relating to the newsletter, please call 49-41679 or email us.  Thank you.