Compensation & Benefits

1. PURPOSE

The leadership of Brigham Young University–Hawaii (“BYU–Hawaii” or “university”) have a solemn responsibility to strike a balance between their obligation to prudently manage the sacred tithing funds of its sponsor, the Church of Jesus Christ of Latter-Day Saints ("Church") and the necessity of offering a compensation program that is sufficiently appealing to attract, engage, and retain the academic and administrative talent needed to carry out the institution’s prophetic mission. They also have a responsibility to assure that staff compensation practices are compliant with the Fair Labor Standards Act of 19381 (FLSA), the Equal Pay Act of 19632, and other federal and state regulations affecting wage rates.

To these ends, this policy articulates the university’s compensation philosophy, correlates the elements of its total compensation offerings—pay, benefits, and rewards—and establishes a mechanism for fair and equitable compensation administration for its employees.

2. POLICY

The university offers its employees and fairly administers a total compensation package that is reasonably competitive with the private labor market, internally equitable, performance-enhancing, and instrumental in facilitating the career and life goals of its employees.

3. IMPLEMENTATION

3.1 Definitions

The following terms (Capitalized in the text) have the specific meanings given:

3.1.1 External Competitiveness

The extent to which pay opportunities at the university match pay opportunities in the private labor market for equivalent positions.

1 Pub. L. No 75-718
2 Pub. L. No. 88-38

3.1.2 Internal Equity

The extent to which the pay opportunities for university positions with equivalent levels of responsibility, equivalent knowledge and skill requirements, and equivalent impact on the university’s operations are equal.

3.1.3 Pay Range

The specification of pay opportunities—entry pay rate through maximum pay rate— is assigned to a given position based on observed practices in the market place and considering the position’s relative value compared to other university position Pay Range assignments.

3.1.4 Target Rate

The rate within a Pay Range that represents the value of a job fully and satisfactorily performed.

3.1.5 Compa-ratio

A numerical value that indicates the relationship of an incumbent’s actual pay rate to the Target Rate of the Pay Range to which the incumbent’s position has been assigned. The value is calculated by dividing the actual rate by the Target Rate.

3.1.6 Exempt Position

Salaried executive, managerial, administrative, and professional positions that, under the provisions of FLSA, are exempt from the requirement of overtime compensation. Exempt employees are paid for the results of their effort, not the time they devote to the job.
Exempt employees are required to work at least 40 hours per week.

3.1.7 Non-exempt Position

Technical, skilled trades, semiskilled, manual, and office clerical positions that, under the provisions of FLSA, are entitled to time and a half compensation for all hours worked over 40 in a university work week. Non-exempt employees are paid for all time they devote to the job.

3.1.8 Red Circle Rate

A pay rate in excess of an assigned Pay Range maximum, usually resulting from a reorganization or reclassification of the job that assigns the position to a Pay Range with a lower maximum. Pay for employees with a Red Circle Rate is frozen until periodic changes in the compensation structure encompass the Red Circle Rate within the assigned Pay Range for the position.

3.2 Compensation Structure

The university relies on a compensation structure with logical and consistent relationships among pay grades to define equitable pay relationships among campus positions. HR has a responsibility to keep the compensation structure aligned with changing market conditions.

3.2.1 Competitive Market

For purposes of designing the compensation structure and assigning positions to the appropriate pay grade, the university defines its competitive markets as follows:

a. Academic positions

The institutions with which BYUH competes for faculty and academic administrators include BYU, BYU Idaho, the university of Hawaii-Manoa, the university of Hawaii- Hilo, Hawaii Pacific university, and Chaminade University.

b. Exempt positions

The university competes for technical, professional, and managerial talent in a national market encompassing institutions of higher education, governments, and industry. Experience has shown that this competition is especially keen with BYU, BYU Idaho, and Utah institutions of higher education.

c. Non-exempt positions

The university’s competitors for skilled, non-exempt workers are Oahu employers in all industries.

d. Salary surveys

The university participates in selected salary surveys and subscribes to commercial salary information services to secure reliable data about pay rates that competitors offer their employees. This information serves two purposes: 1) it tracks general trends that guide the annual adjustment of the university’s compensation structure, and 2) it establishes the market rate of benchmark positions included in the surveys on the basis of which equivalent university positions can be assigned to an appropriate Pay Range.

3.2.2 Job Evaluation and Classification

The university’s human resources department has the responsibility to see that positions are correctly assigned to an appropriate Pay Range and are accurately classified into the proper job category. Department managers have an obligation to provide current, accurate, verifiable information about evolving job requirements for their employees.

a. Job descriptions

Consulting with HR and using the template provided, department managers maintain current and accurate job descriptions for employees in their work groups. When organizational restructuring, business process reengineering, additional workload, or new responsibilities materially change the expectations and critical functions of a job, in counsel with HR, management must update affected job descriptions.

If the updated job description reflects a material change in responsibilities and accountabilities, management may request a re-evaluation of the position’s Pay Range.

Requests for the re-evaluation of a job will not be undertaken more frequently than once in a twelve month period.

b. Methods

Determining the right value and classification of a job is a responsibility of HR requiring familiarity with and professional training in applicable law3, compensation theory, and validated practice.

BYU–Hawaii’s job evaluation method is anchored in the principle of market comparability. Where HR has salary data for a substantially equivalent job in the market, this metric is used to determine what the BYU–Hawaii Pay Range should be. Jobs assigned to Pay Ranges in this manner serve as benchmark positions when setting Pay Ranges for jobs that have no substantially equivalent positions in the market. When this is the case, considering requisite educational levels, scope of responsibilities, and impact on the university’s operations, HR makes an informed judgment about the relative value of the job compared to university benchmark positions.

After Pay Ranges have been established, HR determines if a position can be classified as exempt from FLSA required overtime eligibility or must be designated as a non- exempt position eligible for overtime compensation. This determination is reached through the application of decision criteria specified in law and regulation.

3.3 Benefits

The university’s total compensation program includes a set of benefits designed to assure family security and promote the career and life goals of its full-time employees. Except for legally mandated benefits, student, temporary, and part-time employees are not eligible to participate in benefit programs. Elements of the benefits package include the following items, the administration of which is detailed in other relevant university policies or plan documents:

3.3.1 Mandatory benefits

The following benefits are required by law:

• Workers’ compensation insurance
• Unemployment insurance
• Temporary Disability Insurance
• Employer match to FICA withholding: Insurance

Offerings include:

• Individual and family healthcare insurance
• Long term disability insurance
• Individual and dependent life insurance

Details on coverages, required employee contributions, and optional enhancements are given in the summary plan description.

3.3.2 Retirement

offerings include the following:

• 401(k);
• Supplemental retirement savings plans
  

The summary plan description provides information about the parameters of these offerings. Policies governing retirement and post retirement employment, etc. are stated in HRSD-017, Retirement Policy.

3.3.3 Location accommodation

Financial assistance for eligible employees to mitigate the costs of

• Relocation to Oahu.
• Housing subsidy.

The policies governing this assistance are specified in HRSD-014, Relocation Assistance and, HRSD-043 Housing Assistance;

3.3.4 Leave

The university grants paid or unpaid leave for the following purposes:

• Holidays
• Vacation
• Sickness of employee or family members
• Funeral
• Maternity Leave
• Parental Leave
• Jury Duty
• Military service
• Full-time Church service
• Personal needs

Policies governing eligibility for and use of these leave opportunities are given in HRSD- 023, Leaves Policy

3.3.5 Training and development

Elements of this benefit program include:

• BYUH tuition waiver
• Advanced degree or professional certification tuition assistance
• Professional conferences and in-service training programs

Policies governing eligibility for and use of these leave opportunities are given in HRSD- 018, Talent Management Policy

3.3.6 Awards

Gifts and cash bonus payments recognizing

• Service milestones
• Extraordinary performance

The policy governing these awards is specified in HRSD-018, Talent Management Policy.

3.3.7 Family tuition benefits

The university grants the spouse and children of full-time BYUH employees a tuition discount for academic credit courses taken at any CES institution. The benefit is not available to the spouse or children of part-time, adjunct, on-call, and temporary employees.
The parameters of this benefit include:

a. Benefit

The cost of tuition for undergraduate academic credit courses at BYU, BYU–Hawaii, BYU-Idaho, BYU-Pathway Worldwide and Ensign College
will be reduced by fifty percent for eligible children and one hundred percent for the spouse of a full-time BYUH employee. This discount supplements any other scholarship assistance to a maximum of the total of tuition and books. The discount must be claimed before the end of each semester of enrollment, or it will be forfeited.

b. Eligibility

The spouse and children of full-time BYUH employees are eligible for the tuition discount from the employee’s hire date. In the event of the death of an active
employee, the decedent’s spouse and children who were eligible for the tuition discount at the time their spouse’s/parent’s death will remain eligible for this benefit. The spouse and children of a retired BYUH employee are eligible for the tuition discount. Children who are not legal dependents of a BYUH employee but are living as a regular member of the employee’s household under the provisions of legal guardianship, may be eligible for the tuition discount if approved by the President’s Council.

c. Limitations

• The tuition discount benefit is not available for any graduate level program.
• Beneficiaries of the tuition discount benefit must have completed the 10th grade.
• The tuition discount benefit is only applicable to a first undergraduate degree.
• For the children (regardless of marital status) of a BYUH employee, the benefit is limited to the completion of 152 credit hours or reaching age 30, whichever comes first.
• Credit hours available from testing for language credit, advanced placement credit, or transfer credit from non-CES institutions will not count against the 152 credit hour limit.
• Payments following death of full-time employees

When an active full-time employee dies while employed at the university, the spouse, surviving children, or the administrator of the estate (as appropriate in the circumstances) will receive payments from the university as follows:

a. Salary or wages earned but not yet paid

Consistent with Hawaii State Law (H.R.S. 388-4), all the salary or wages earned to the date of death plus unused vacation pay will be paid. Financial Services will deduct required tax withholding as well as other university deductions.

b. Voluntary gift

For exempt employees, the university will pay a voluntary gift rounded to the nearest $100 comprised of unearned salary from the day after death through the end of the month plus

• For faculty, 1/6 of the faculty members’ base contract.

For exempt personnel, 1/6 of the employee’s annual salary.

• For non-exempt employees, the university will pay a voluntary gift comprised of payment for scheduled work hours from the day after death through the end of the month plus 1/6 of the employee’s preceding year’s total wages

This voluntary gift will not be made if there is no surviving spouse or dependent children. This will be paid to the specified individual on the beneficiary statement or next of kin of the deceased employee.

An employee on an approved leave at the time of her/his passing will be eligible for the voluntary gift. For faculty on leave without pay, the gift will be determined by what the base salary would have been for the last academic year before the leave. For staff and administrative employees on leave without pay, the gift will be paid based on the last annual salary before the leave.

The university is required to report this gift to the Internal Revenue Service on Form 1099- MISC. It is recommended that recipients review the tax ramification of the gift with their tax advisor.

3.4 Faculty Pay Administration

Consistent with the provisions of this policy, the responsibility for administering faculty pay rests with college deans and the Academic Vice President.

3.4.1 Pay Schedule

Faculty positions will be assigned to an appropriate Pay Schedule in the university’s compensation structure based on consideration of the rank and salary survey data for equivalent academic positions in the competitive market. HR will provide technical assistance to academic leaders in the conduct of faculty job evaluations but the Academic Vice President will make the Pay Schedule assignment decision. This decision is not subject to appeal.

3.4.2 Starting pay

After considering the appointee’s academic credentials and relevant experience level, the Academic Vice President determines the candidate’s starting pay.

3.4.3 Annual pay review

Annually, HR will conduct an analysis of compensation trends among the university’s competitors. To the extent indicated by market data, HR will recommend a general adjustment to the salary structure. Subject to budget availability, faculty members judged to be meeting their performance expectations are eligible to receive an annual base pay adjustment equal to the general structure adjustment.

In addition to structure movement adjustments, when budget resources are available, faculty members may also receive merit pay increases. The Academic Vice President, with the assistance of HR, will issue specific guidelines for administration of merit adjustments.

3.4.4 Promotion

When a rank and status review of a faculty member’s contributions to the university results in a recommendation for promotion to a higher rank, and subject to budget availability, the faculty member may be given a base pay adjustment. This adjustment is a fixed amount depending on the rank. The adjustment amount is subject to the same review procedure described in 3.4.3.

3.4.5 Timing

Pay rate changes associated with promotion will be effective at the start of the first pay period of fall semester following final approval of the promotion. All other faculty pay adjustments will be effective on January first.

3.4.6 Additional compensation

A full-time faculty member may simultaneously hold two jobs and earn additional compensation at the university when the following conditions apply:

a. The faculty member secures prior approval from the heads of both departments Email, memos, or other documentation verifies that the head of each hiring department is aware of the job commitments that the faculty member has to the other department; that there is agreement on the primacy of the faculty member’s first loyalty; and that all of the parties are willing to work out any problems.

b. The faculty member can manage the workload in compliance with the university’s Conflict of Interest and Conflict of Time Commitment policy.

Work schedules and other incidental time commitments to the secondary position have be arranged so that the obligations will not negatively affect the employee’s on-the-job performance in the primary role.

c. The arrangement furthers the university’s interests.
On balance, the faculty member can demonstrate that her/his pursuit of the secondary opportunity will be of benefit to the university.

3.5 Non-faculty Pay Administration

Consistent with the principles of this policy, decisions affecting the wages and salary of all university employees, except faculty members, is the shared responsibility of the management chain to which the position reports and HR. No officer of the university has the authority to make any compensation decision without first consulting with HR to establish specific decision parameters that will assure compliance with legal standards and the university’s commitment to External Competitiveness and Internal Equity.

3.5.1 Starting pay rate

The starting pay rate for a newly hired employee cannot be less than the minimum of the Pay Range to which the employee’s position has been assigned nor result in a Compa-ratio greater than 1.0. HR has a responsibility to recommend, and the hiring official has to concur with a starting pay rate that considers the employee’s qualifications, related experience, and relationship to similarly situated employees at the university.

3.5.2 Annual pay review

Prior to the start of the university’s fiscal year and consistent with Church-provided salary adjustment guideline, HR will issue a salary administration instructions establishing the base structure movement adjustment and suggested merit increase budget. Once approved by the President’s Council, supervisors will be responsible for using the guide to determine individual pay adjustments. The effective date of annual pay adjustments corresponds to the start of the fiscal year.

3.5.3 Market and equity adjustment

Market and equity adjustments are salary adjustments for an employee or group of employees that have fallen behind in base salary as compared to similar positions on campus and/or in the market. Market and equity adjustments do not occur in conjunction with a change in title or grade. Adjustments will not be made if differences are explainable based on qualifications, type or length of experience (both internal and external to the university), the work itself, and/or performance and productivity. All market adjustments are subject to budget constraints.

a. Lateral Transfers

A lateral transfer is defined as movement from one position to another in the same Pay Range. Transferring is an opportunity for employees to expand their depth and breadth of knowledge and increase their career development opportunities. Consequently, a lateral transfer is not accompanied by a pay adjustment.

b. Promotion

Promotion is defined as moving to a position of greater responsibility or scope assigned to a higher Pay Range. Promotional pay adjustments may not exceed the percentage difference between the Target Rate of the new position and the Target Rate of the old position. However, pay in the new position cannot be less than the minimum of the new position’s Pay Range.

c. Demotion

When, as part of a disciplinary action, an employee is moved to a position with a lower level of responsibility and a lower Pay Range, the employee’s pay will be reduced by the percentage difference between the Target Rate of the new position and the Target Rate of the old position; except that the pay rate cannot exceed the maximum of the new
position’s Pay Range.

3.5.4 Reclassification

Reclassification of a position may occur when an evaluation of its duties and responsibilities finds that it is incorrectly assigned to a Pay Range. When this happens, a pay adjustment may be warranted.

a. Reclassification assigns a higher Pay Range

A reclassification pay adjustment may not exceed the percentage difference between the Target Rate of the new Pay Range and the Target Rate of the old Pay Range.

However, pay cannot be less than the minimum of the new Pay Range.

b. Reclassification assigns a lower Pay Range

A reclassification to a lower Pay Range cannot reduce the incumbent’s current pay level. If the current pay level is above the maximum of the new Pay Range, the incumbent’s pay rate will be Red Circled until annual adjustments to the compensation structure have moved the maximum of the Pay Range to exceed the incumbent’s pay rate.

3.5.5 Extraordinary assignment/workload

In rare cases, when an employee is required to assume extraordinary additional responsibility or workload for a period exceeding thirty days and the extra work is not a talent improvement plan stretch assignment, managers may reward this extra service with a discretionary cash payment up to $ 1,500 as approved by the cognizant Vice President.

3.5.6 Spot Bonuses

Full-time administrative and staff employees will be eligible for spot bonuses based on special circumstances and reviewed on an individual basis for approval by the President's Council. Spot bonuses are awarded infrequently and the amount will be determined by the President's Council.

3.5.1 Timing

Pay rate changes associated with transfers, promotions, reclassifications, and market adjustments will be effective at the start of the next pay period following approval of the action. All other pay adjustments will be effective at the start of the fiscal year.

Pay adjustments cannot be made retroactively.

3.6 Student, Temporary, and Part-time Employee Pay Administration

Consistent with the principles of this policy, decisions affecting the wages of student, temporary, and part-time employees are the responsibility of the management chain to which the position reports.

3.6.1 Student position compensation structure

The compensation structure for student positions provides a limited number of Pay Ranges into which student jobs may be assigned based on a consideration of the position’s level of accountability, depth of knowledge requirements, and working conditions. The structure is driven by the need to comply with Hawaii state minimum wage requirements.

3.6.2 Pay administration approach

The approach to pay administration for student, temporary, and part-time employees is similar to the approach followed for regular employees.

a. Students

HR will assign all student positions to an appropriate Pay Range in the student position compensation structure after consideration of the job’s requirements.

Students may be hired at the starting rate of the assigned Pay Range.

The student position compensation structure may be adjusted at the start of the fiscal year to accommodate any mandatory minimum wage changes or to respond to market conditions. Individual student pay rates will be adjusted to reflect changes in the compensation structure’s Pay Ranges.

Supervisors may make adjustments to student pay rates at any time on the following conditions:

• The current pay rate is below the Target Rate for the position
• The student wages budget has the capacity to fund the increase
• The results of a performance appraisal justify the proposed adjustment.

Mid-year pay adjustments for student employees are effective at the start of the next pay period following their approval. Pay adjustments cannot be made retroactively.

b. Temporary positions

Managers may hire employees on a temporary basis either to satisfy a short term project need or to fill student positions that otherwise would go vacant. The duration of a temporary position cannot exceed 1000 hours worked in any twelve month period.

The pay rate for temporary employees filling other university positions will be the minimum rate of the Pay Range to which the position has been assigned, or, if the position has not been created, the minimum rate of the assigned Pay Range for positions of equivalent responsibility and complexity.
Pay rates for temporary employees cannot be adjusted for the duration of the temporary employment period.

Temporary employees are not eligible for paid time off or other benefits except when legally mandated benefit qualification conditions have been satisfied. In which case, the mandatory benefit is extended only for as long as the temporary employee meets the threshold requirements of the program.

c. Part-time positions

If the position has been authorized, managers may hire part-time workers to fill on- going needs that can be satisfied by someone working fewer than 19 hours per university work week.

The initial pay rate for part-time employees will be the minimum rate of the Pay Range to which their position has been assigned, or, if the position has not been created, the minimum rate of the assigned Pay Range for positions of equivalent responsibility and complexity.

If a part-time worker maintains employment with the university for more than one year, a supervisor may make annual adjustments to the employee’s pay rate on the same basis as a full-time employee.

Part-time employees are not eligible for any employee benefits except those mandated by law.

A part-time employee at BYUH may not simultaneously be employed at any other Church entity.

3.7 Cell Phone Use for Work

Hourly, non-exempt, employees are not expected to use their mobile devises for work purposes outside of their normal work schedule without authorization in advance from their supervisor/manager. This includes but is not limited to reviewing, sending, and responding to e-mails or text messages, responding to calls or making calls.

If an employee is authorized to work on their cell/smart phone after normal/regular work hours he/she shall keep track of the total time they were on company business and report their time to their supervisor/manager to be included as part of their work hours.

3.8 Exceptions

Except for matters relating to FLSA, the cognizant vice president may approve exceptions to the requirements of this policy in writing supported by documented evidence that doing so is in the university’s best interests.

4. RELATED POLICIES AND PROCEDURES