University of Minnesota
Office of Human Resources

Rule 5 Compensation System

5.1 Preparation of Compensation Plan

The Vice President shall prepare a compensation plan that includes provisions for any salary increases. The policy of equal pay for equal work, the University's ability to pay, labor market competitiveness, and internal pay equity will be the major considerations in formulating the compensation plan. The Vice President shall obtain approval of the Consultative Committee and the Board of Regents. The current compensation plan can be viewed on the worldwide web at be obtained from the responsible administrator.

5.2 Salary Range Changes

5.2.1 The Vice President shall consider all written requests for changes in salary ranges from employees, supervisors, and responsible administrators. The Vice President shall notify all affected parties of the decision for or against a change. The Consultative Committee shall review and the Vice President shall approve any proposed recommendations regarding salary range changes. Salary increases commensurate with the amount of the range adjustment shall be given to employees in job classifications that are affected, except where documented performance or documented funding considerations warrant withholding part or all of the increase or where such range adjustments are made for administrative purposes to improve the salary structure.

5.2.2 The Vice President's decision may be appealed by the employee within 45 calendar days after receiving the decision. Appeals must be made in writing to the Consultative Committee.

5.3 Compensation Policies

5.3.1 The Vice President shall establish compensation policies for the regulation of salary increases, hiring rates, on-call rates, augmentation rates, in-range adjustments, outstanding achievement awards, and salary changes in cases of promotion, demotion, transfer, reinstatement, shift differential, and return from leaves of absence. Administrative units have full managerial discretion within the framework of the policies except for the following:

5.3.2 No one can be hired above or below a salary range, except that trainees must be hired below the salary range (Rule 6.6).

5.3.3 Promoted employees (see “Definitions” and Rule 4) must receive a minimum salary increase of four percent unless that increase would:

  1. place the salary below the minimum salary or
  2. place the salary over the maximum of the range of the higher level classification. If the minimum increase of four percent does not bring the salary to the minimum salary of the higher classification, then the employee must receive whatever percent increase is necessary to reach the new base. If the four percent increase places the salary over the maximum, then the employee's salary shall be set at the maximum of the range of the higher level classification.

5.3.4 Employees who have been demoted and who have:

  1. not experienced reductions in salary as a result of the demotions, and
  2. 2) who are subsequently promoted to classifications at or below their former salary ranges (but not below the minimum salary of the classifications in which they have been promoted), shall not receive a promotional salary increase without the approval of the Vice President. If, however, the employees’ salaries are below the minimum salary of the classifications to which the employees have been promoted, the employees must receive the minimum salary of the higher classification (see “Definitions” and Rule 4).

5.3.5 An employee who is demoted (see “Definitions” and Rule 4) shall be paid at or below the maximum of the salary ranges for the job classification into which the employee is being demoted. Depending upon administrative unit discretion, the salaries within the range after demotion should reflect the employee’s experience and performance. The salary may not, however, exceed the employee’s salary before the demotion.

5.3.6 Employees who transfer (see “Definitions”) may receive an increase in salary over their former salary. If the beginning rate for the new position is higher than the rate the employee was at in the former position, the employee's salary shall move to the beginning rate for the new classification. Conversely, if the employee's salary in the former position exceeds the maximum of the range for the new position, the employee's salary must be decreased to the maximum of the range for the new position.

5.3.7 Employees returning from unpaid leaves of absence shall be compensated at the same rate of pay they received when the leaves commenced plus any non-discretionary increases which became effective during the time of the leaves. For increases requiring a specific length of service in order to be eligible for consideration, the period of the leave of absence is not counted toward eligibility. However, if employees gain additional experience or education that is relevant to their work during the leaves of absence, the time of the leaves may, at the administrative unit’s discretion, be counted toward eligibility for discretionary increases.

5.3.8 Employees shall receive on-call (see definition) and augmentation pay, as provided for by University policy (see OHR web site and refer to Civil Service pay plan). Employees shall also be provided with off-cycle checks under the circumstances specified by University policy.

5.3.9 An employee who performs work in a higher classification for longer than five consecutive workdays shall receive a temporary salary augmentation during the remainder of the time the employee works out-of-class. The augmentation must be a minimum of four percent of the employee's current hourly rate, or the percent of the employee's current hourly rate necessary to reach the minimum rate of the higher classification, whichever is greater. Any overtime shall include the augmentation. If the responsibilities of the higher classification become permanent duties of the employee, that employee has the right to submit a job a JEQ/JRQ questionnaire.

5.4 Total Remuneration

5.4.1 Employees shall not receive perquisites, which may include but not be limited to residence, board, room, laundry, commutation, or any combination thereof, as a part of the employee's regular compensation unless these perquisites are required for the satisfactory performance of assigned duties.

5.4.2 Whenever employees are required to wear uniforms as a condition of employment, the employer shall, according to administrative policies, either provide employees with uniforms or provide funding to the employees for purchasing uniforms. Laundering of lab coats when employee works in hazardous environments shall be the responsibility of the lab per the guidelines when working in hazardous environments: (,

5.4.3 Likewise, whenever badges, ID Cards, keys, electronic access or communication devices (e.g. internet connections, pagers, cell phone) are required as a condition of employment, the employer shall provide them or provide funding for their purchase. Employees may be assessed reasonable refundable deposits including interest, or charged reasonable replacement fees for items that are lost or negligently damaged.