Human Resources Guideline & Interpretation

1

Delegated Compensation Guidelines

CMP 0008

Purpose:

This guideline serves to: (1) delineate the compensation decisions that have been delegated to Presidents/Chief Human Resources Officers, and (2) outline the process to be used to request system HR approval of compensation in excess of delegated authority.

Affects: All system colleges, universities, and the System Office

Authoritative References:

• MMB Administrative Procedures: 15.6 Transfer/Demotion & 17.1 Work Out of Class (http://www.mmb.state.mn.us/admin-proc )

• MMB Delegation Agreement with MnSCU-HR for Compensation Decisions • Union Contracts/ Bargaining Unit Agreements/Pay Plans (http://www.mmb.state.mn.us/ag-

serv/lr) • MMB Compensation Guide #1-Salary Placement for New Hires

(http://www.mmb.state.mn.us/doc/sema4/bull/092210b.pdf ) • MMB PERSL#1403: New Progression Language in the AFSCME Contract

(http://www.mmb.state.mn.us/doc/persl/1403.pdf ) • MMB Examples of Implementation of New AFSCME Progression Language

(http://www.mmb.state.mn.us/doc/persl/1403a.pdf ) • MMB PERSL#1387: Employees with Multiple Appointments

(http://www.mmb.state.mn.us/doc/persl/1387.pdf ) Required Forms: Documentation for Salary Decisions

Responsibility for Implementation: Staff in the System Office Human Resources division, presidents, and staff in the human resources offices of colleges and universities are responsible for decisions made within their delegated authority.

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Attachments:

• Delegated Compensation Guidelines • Documentation for Salary Decisions form • Compensation Delegation Summary matrix

Introduction: The attached documents were developed by a task force of college and university human resources staff and System Office staff as guidance for certain salary decisions. This document is subject to approval by Minnesota Management and Budget staff.

Approved: July 29, 2005

Revised: December 19, 2011

____________________________________

Vice Chancellor, Human Resources Date

12/21/11

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Attachments

Delegated Compensation Guidelines These guidelines apply to all employees except those covered by IFO, MSUAASF, MSCF, and the MnSCU Administrators Plan. Introduction: Delegated Compensation Authority was granted by MMB to MnSCU interim Associate Vice Chancellor for Human Resources, Sheila Reger, based partly on the following written guidelines. The guidelines were drafted by MnSCU and approved by MMB. Changes to the guidelines must be approved by MMB. This delegation shall expire if the delegate leaves the position. MMB retains the right to withdraw this delegation upon written notice to the delegate or the Chancellor of MnSCU. On-going audit: MnSCU will, on a routine basis, review HR transactions for consistency in processing and documentation. This will include running ad-hoc reports to audit salary appropriateness on progression increases, promotions, demotion, transfers, new hires and work out of class assignments. The person assigned to review the reports will not be the same person who processes the HR transaction to ensure sound audit practices and internal consistency. MnSCU will create new reports as needed to check for errors as they relate to paying employees as new situations come to light.

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Objective: To be accountable for making decisions regarding employee compensation within the parameters of the Delegated Compensation Authority granted by Minnesota Management & Budget and pertinent collective bargaining agreements or pay plans, statutes, Administrative Procedures and Personnel Rules, in a fair, equitable, and consistent manner on a system wide basis. This document is meant as reference material for internal salary decisions. Current collective bargaining agreements, pay plans, applicable statutes, personnel rules, policies, and administrative procedures should be examined before making final salary decisions. Any questions or need for clarification should be directed to your System Office, Staffing and Compensation HR Consultant. Table of Contents: Preface Accountability Statements Page 5 Section 1 Justification Criteria for Salary Decisions Page 6 Section 2 Documentation of Salary Justification Criteria Page 7 Section 3 Initial Appointment to State Service Page 8 Section 4 Reinstatement of current or former employees Page 9 Section 5 Recall from Layoff Page 10 Section 6 Movement of Current Employees Page 11 Section 7 Mobility Assignments and Work out of class Page 14 Section 8 Exceptions to Delegated Salary Authority Page 16 Appendix A Definitions Page 17 Appendix B Documentation for Salary Decisions form Page 19 Appendix C Compensation Delegation Summary matrix Page 21

This document was approved by Minnesota Management & Budget on December 19, 2011. Any changes to the content of this document or the attachments must be reviewed and approved by

MMB.

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Preface – Accountability Statements

Salary Delegation

The MnSCU interim Associate Vice Chancellor for Human Resources, Sheila Reger, has been delegated to give final approval for compensation rates for HR transactions involving employees of the Minnesota State Colleges & Universities system (MnSCU) with the understanding that when situations arise that have potential statewide impact, the MMB Compensation Staff will be consulted before critical decisions are made. These transactions are:

1. Establishment of starting rates of pay for employees accepting initial appointments to state service, except as limited by the salary range maximum.

2. Determination of the rate of pay an employee receives upon promotion to a higher classification, except as limited by the salary range maximum.

3. Determination of salary rates on work out of class assignments, again, except as limited by the salary range maximum.

The applicable provisions of collective bargaining agreements, compensation plans (non-union plans), rules and statutes limit this delegation. This delegation does not include authority to place salaries outside the range, make exceptions to the transfer policy, freeze the salary over max of an employee upon demotion, adjust salaries upon return from leave, reinstate at rates higher than the employee left at, grant unusual employment situation increases per §M.S.43A.17, Subd. 3, grant hiring incentives, or any other authority not mentioned above, except as explicitly given the appointing authority under the terms of a collective bargaining agreement or compensation plan. The following employee groups are not covered by this guideline:

• IFO • MSUAASF • MSCF • MnSCU Administrators

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Section 1 - Justification Criteria for Salary Decisions

Applicability: This section applies to all salary decisions including initial appointment, promotion, demotion, transfer, reinstatement, recall from layoff, mobility assignments, and work-out-of-class assignments. These criteria should be used whenever there is a discretionary decision to be made regarding setting compensation unless otherwise provided for in statute. Guidelines: It is anticipated that appointments will normally be made at the minimum salary required by the applicable collective bargaining agreement/plan for a job class, unless a review of the circumstances indicates that a higher rate is warranted. When making appointments, the following factors (if applicable to the situation) are to be taken into consideration: • Relevant experience, education, training, and specialized expertise/skills of the candidate. • Internal Equity – Comparison of compensation of other employees currently in the class with similar

job-related backgrounds, skills and education. See also https://extranet.mmb.state.mn.us/hr-labor/hr/staff-comp/comp.htm: “Example-Internal Equity Comparison" and Ledbetter-Comp Admin Memo 8/20/09.

• Difficulty in filling the position or other recruitment or selection challenges. Additional factors that may be taken into consideration: • Experience, education, and training of other candidates interviewed/considered. • Availability of qualified candidates at the minimum rate. • Acknowledgement of a significant training investment in the selected candidate. • Date of next scheduled anniversary increase for current employees. • Labor market considerations. • Previous compensation of the candidate. It is acceptable to ask a candidate what their salary

expectations are. However, candidates should not be asked their current compensation or rate of pay when determining compensation for initial appointment to state service.

• Other specialized experience not previously identified and/or special qualifications that may be advantageous to the Appointing Authority.

• Past practice as it relates to hiring into the specified class.

Cautionary Notes: • Ensure your compensation decision is not based on illegal discriminatory factors. • A new employee should not be hired at a higher rate than current employees with more experience

unless you have documented rationale based on specific job-related factors. • Subject your decision to the public scrutiny test. Ask yourself how your decision would read/sound if

it showed up on the front page of the paper or the evening news.

Note: It is a reasonable compensation practice to ask the candidate what her/his salary expectations are. However, it is not appropriate to ask a candidate what s/he is currently being paid. To ensure that our salary decisions don’t bring forward past illegal discriminatory practices, it is not acceptable and we do not base our salary decision on the candidate’s current salary or rate of pay.

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Section 2 – Documentation of Salary Justification Criteria Applicability: This section applies to documentation of the criteria listed in Section 1 of these guidelines. Documentation is kept to ensure equity and non-discriminatory compensation practices. Guidelines: Appendix B, Documentation for Salary Decisions, must be completed for all transactions listed in Section 1 including those at the minimum of the salary range. All relevant information for the candidate regarding compensation decisions should be included on the approved form in Appendix B. The Appendix B form and any other documentation will be stored in a separate Compensation Decisions file along with any other relevant records relating to the salary decision. This is particularly helpful when the need arises to reference these materials for future step placement decisions. Record of the approval only will be stored in the employee’s personnel file. This is to ensure that information on other employees will not end up in the personnel file of the candidate. Campuses are responsible for storing compensation documentation for all decisions for which they have delegated authority. The System Office is responsible for storing compensation documentation for compensation decisions made above the campuses’ delegated authority.

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Section 3 - Initial Appointment to State Service

Applicability: This section applies to candidates who are not already state employees, have never been state employees, or have not been employed by the state within four (4) years of the new appointment date. These salary provisions apply regardless of the type of appointment (i.e., classified or unclassified) or the employee’s status or employment condition (i.e., temporary, permanent, part-time, etc.). See Minnesota Rules 3900.2100, Sub. 2 (https://www.revisor.mn.gov/rules/?id=3900.2100). For current MnSCU Administrator, MSUAASF, or Faculty employees hired into positions covered by this guideline see Section 6. Guidelines: It is anticipated that appointments will normally be made at the minimum salary required by the applicable collective bargaining agreement/plan for a job class, unless a review of the circumstances indicates that a higher rate is warranted. These guidelines also apply to emergency and temporary employees. (Note: Keep in mind that any subsequent permanent appointment to the same class or transferable class (or demotion to another class where the salary is within the range) may require that the salary remain the same if there was no break in service.) Salary rates:

The Chief HR Officer of each campus has authority to approve:

A. AFSCME, MAPE, MGEC & MMA: Up to step 3 of the applicable range. B. Commissioner’s Plan: Up to 12% above the applicable salary range minimum. C. Managerial Plan: Up to 12% above the applicable salary range minimum. D. MNA: Up to the max of the applicable salary range. E. Hiring seasonal employees into temporary appointments in the same classification during their

seasonal layoff at their seasonal rate of pay. F. Rehiring employees into emergency/temporary appointments in the same classification and at

the same rate of pay as the prior emergency/temporary appointment. Approval for salaries above these rates must be obtained from the System Office, Staffing and Compensation HR Consultant staff and in some cases prior approval from MMB Compensation will be required. (Please refer to Section 8.) Salary rates beyond the delegation authority level must be approved before making the salary offer to the candidate.

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Section 4 - Reinstatement

Applicability: This section applies to candidates appointed via Minnesota Statutes § 43A.15 Subd. 15 and Minnesota Rules 3900.2100 who separated from state service within four (4) years of the new appointment date. If they separated more than four (4) years ago, their salary treatment is as if they were Initial Appointments to State Service. See Section 3 of this document and Minnesota Rules 3900.2100, Sub. 3 (https://www.revisor.mn.gov/rules/?id=3900.2100). Guidelines: An employee who had been in a permanent classification and is reinstated via Minnesota Rules 3900.2100 to the same permanent classification that they had previously been employed in, within four (4) years of separation, may be returned at or below the same rate of pay the employee had been receiving at the time of separation plus any general wage adjustments that would have been made had the employee been continuously employed during the period of separation. (Note: Wage adjustments do not include progression/performance increases that an employee might have received had they remained in the classification.) Exceptions: Request of any salary above the employee’s previous rate at the time of separation must first be made to and approved by the MnSCU Staffing and Compensation HR Consultant and then by MMB Compensation. (Please refer to Section 8, Subpart B of these guidelines.)

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Section 5 - Recall from Layoff

Applicability: This section applies to candidates hired from a layoff list. This may be:

A. Return to active state service to the job class from which laid off; or B. Return to the higher job class after taking a demotion in lieu of layoff.

Guidelines: Candidates being hired from a layoff list will be appointed at the same step (or rate of pay for those not on-step) the employee was receiving at the time of their layoff from the job class, plus any general wage adjustments made since the layoff. (Note: Wage adjustments do not include progression/performance increases that an employee might have received had they remained in the classification.) When employees are hired into other appointments or positions while in layoff status, the layoff job class shall be compared with the new job class in consideration of promotion, demotion, transfer per MMB Administrative Procedure 15.6 (http://www.mmb.state.mn.us/doc/proc/15-6.pdf) when setting the new salary. If an employee is in seasonal layoff status from a MnSCU facility and accepts a temporary or emergency appointment in the same class, the temporary or emergency appointment shall be made at the same step the employee has attained in the class prior to seasonal layoff. If an employee is in seasonal layoff status and accepts a temporary or emergency appointment in a different class, refer to “Section 3 Initial Appointment to State Service.”

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Section 6 - Movement of Current Employees

Applicability: This section applies to current state employees regardless of the type of appointment (i.e., classified or unclassified) or the employee’s employment condition (i.e., temporary, permanent, part-time, etc.). Situations where an employee is on leave of absence from a classified position to serve in an unclassified position and the employee moves to a third position, shall be treated as movement from the permanent position and the salary set accordingly. Movement will not be determined based on the unclassified position and the employee’s salary will not be set based on the unclassified position. Guidelines: All employee movement (excluding Legislative, Judicial and Academic) will be evaluated for promotion/demotion/transfer per MMB Administrative Procedure 15.6 (http://www.mmb.state.mn.us/doc/proc/15-6.pdf). Movement of current MnSCU Administrator, MSUAASF, IFO, or MSCF employees into positions covered by these guidelines shall be treated as initial hires for purposes of setting salary. When employees covered by these guidelines move to a position covered by the MnSCU Administrator, MSUAASF, IFO, or MSCF plans, the employees shall be treated as initial hires for purposes of setting salary. Once the determination is made, the following guidelines for setting employee salaries will apply: A. Promotion:

Minimum salary upon promotion: Employees must be granted the minimum salary adjustment upon promotion as determined by the appropriate collective bargaining agreement/plan. Please refer to current collective bargaining agreement/plan for complete information. Also refer to Section 6, Subpart E of these guidelines for information regarding reallocations. • AFSCME, MAPE, MMA, and MGEC: Employees who are promoted shall be granted a salary

increase of at least one (1) step or shall be paid at the minimum of the higher range, whichever is greater.

• Commissioner’s Plan: Upon promotion, an employee shall normally receive a salary increase of at least 3.5%.

• Managerial Plan: Upon promotion, a manager shall receive a salary within the range for the new class. There is no minimum increase required by the plan.

• MNA: Nurses promoted shall have their salary adjusted to a rate in the new salary range which provides an increase in pay.

Above minimum salary upon promotion: Approval for a salary rate above the minimum rate upon promotion as stated above must be received before making the salary offer to the employee. Please refer to the appropriate collective bargaining agreement/plan: • AFSCME, MAPE, MMA, and MGEC: With approval of the Campus Chief HR Officer, promoted

employees may be appointed up to three (3) steps beyond their current salary or to step three of the new salary range, whichever is greater.

• Commissioner’s Plan: A salary increase of up to 12% or the midpoint of the new salary range may be granted with the approval of the Campus Chief HR Officer.

• Managerial Plan: A salary increase of up to 10% or the first quartile of the new salary range may be granted with the approval of the Campus Chief HR Officer.

Approval above the rates indicated above must come from the System Office’s Staffing and Compensation HR Consultant staff. In no case shall the promotional rate place the salary over the maximum of the range.

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B. Transfer:

Unless otherwise provided in collective bargaining agreements/plans, salary is unchanged unless it is necessary to grant an employee an increase in order to pay the employee the minimum of the new salary range. (Note: MMA must go on step upon appointment. Managerial and Commissioner’s plans allow for employees to accept a lower rate. Please also see “Approved Exceptions to the Transfer Policy” http://www.mmb.state.mn.us/doc/comp/guides/CompGuides3.pdf). For voluntary transfers, employee receiving a rate of pay in excess of the maximum shall continue receiving that rate of pay. When an employee moves to a position covered by a collective bargaining agreement with a step progression or anniversary increase system, and the move is between salary grids, the employee remains off-step until the next progression/anniversary increase, when the employee receives one full step plus the amount necessary to place the employee on-step, not to exceed the maximum of the range. (Note: MMA must go on step upon transfer.) Transfers between classifications in different ranges may cause an employee to become eligible for a progression increase they would otherwise not receive. Progression increases should be granted based on satisfactory performance in the new class. It is recommended that employees spend at least 50% of the time requirement for the step in the class before progression is granted, enough time for the performance in the new job to be evaluated. See PERSL#1403 http://www.mmb.state.mn.us/doc/persl/1403.pdf

C. Demotion for Other Than Cause:

Please refer to the appropriate collective bargaining agreement/plan for specific information regarding Demotion for Other Than Cause. General guidelines are as follows: Appoint the demoted employee at their current rate of pay if it falls within the new salary range. (Note: MAPE, Manager’s and Commissioner’s Plans allow for employees to accept lower rates.) If the demoted employee’s rate of pay exceeds the maximum of the new salary range, the employee’s rate of pay is reduced to the maximum of the new salary range. With concurrence of the System Office Staffing and Compensation HR Consultant, approval to maintain the demoted employee’s salary at a pay rate which exceeds the maximum of the new range must be obtained from the Commissioner of MMB under the provisions of Minnesota Statutes § 43A.17, Subd.5 (https://www.revisor.mn.gov/statutes/?id=43A.17). Demotion between classifications in different ranges may cause an employee to become eligible for a progression increase they would otherwise not receive. Progression increases should be granted based on satisfactory performance in the new class. It is recommended that employees spend at least 50% of the time requirement for the step in the class before progression is granted, enough time for the performance in the new job to be evaluated. See PERSL#1403 http://www.mmb.state.mn.us/doc/persl/1403.pdf

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D. Demotion for Cause:

Upon demotion for cause, an employee shall receive a salary rate within the range for the class to which the employee is demoted.

E. Reallocation and Change in Allocation:

Reallocation to a higher salary range: Follow guidelines for promotion if the reallocation is not a result of a classification study. Specific directions regarding compensation must be obtained from the Commissioner of MMB for reallocations resulting from a classification study of positions. Reallocation to a lower salary range: If a position is reallocated to a class in a lower salary range, and the salary of the employee exceeds the maximum of the new range, the employee shall be placed in the new class and shall retain his/her current salary. In addition, the employee shall receive any general adjustments or other changes if provided by the appropriate collective bargaining agreement/plan. Change in Allocation: The position is treated as a vacancy and posted and rules for promotion/demotion/transfer then apply. There are no special salary provisions for this type of transaction.

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Section 7 – Mobility and Work Out of Class Assignments

Applicability: This section applies to current employees who are assigned to a mobility assignment and/or to a work out of class assignment. See MMB Administrative Procedure 17.1 (http://www.mmb.state.mn.us/doc/proc/17-1.pdf). Guidelines: A. Mobility Assignments:

Employees who accept a mobility assignment to a classified position in a lower or equal classification shall continue to be compensated at their current rate. If the employee performs substantially all the duties of a position in a different (higher) classification, they will be assigned work out of class pay.

B. Work Out of Class:

Any work out of class assignment pay granted to employees will be consistent with the provisions of the collective bargaining agreement or plan which covers the employee in their permanent class. The employee must be expressly assigned all of the duties of a temporarily unoccupied position for at least 10 days. No work out of class assignment for position filling purposes shall exceed 90 days when an appropriate eligible list or applicant pool exists. No work out of class shall exceed 12 months. Employees eligible to receive a pay differential shall be paid on the grid in which the employee is working out of class. Adjustments may need to be made to the work out of class salary when the rate changes in their permanent classification. Refer to the appropriate collective bargaining agreement/plan and Administrative Procedure 17.1:

a. AFSCME, MAPE and MMA: The employee shall be paid their current salary when

assigned to work in a class which is a transfer or demotion. For a class which is a promotion, an employee shall minimally receive an increase to the minimum rate of the new class or at least one (1) step higher than the employee’s current salary, whichever is greater. The limit for granting increases on work out of class shall follow the criteria specified in Section 6A of this document on promotion. Increases greater than what is allowed in Section 6A must be approved by the System Office, Staffing HR Consultant. However, when an employee is assigned to serve in a class for which the employee is on a layoff list, the employee shall be paid as above or the max step previously attained, whichever is greater.

b. Commissioner’s Plan: The employee shall receive a salary increase for the assignment in

accord with the language for salary on promotion in Section 6A of these guidelines if the assignment is in a higher class. Any employee working out of class in a transferable or lower class shall receive no salary adjustment. With the approval of the Campus Chief HR Officer, employee’s assigned work out of class may receive a rate that reflects up to a 12% increase. Increases higher than 12% must be approved by the System Office, Staffing HR Consultant.

c. Managerial Plan: The manager shall receive a salary increase for the assignment in

accord with the language for salary on promotion in Article 6 of these guidelines if the assignment is in a higher class. A manager working out of class in a transferable or lower class shall receive no salary adjustment. With the approval of the Campus Chief HR Officer, employee’s assigned work out of class may receive a rate that reflects up to

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a 10% increase or the first quartile of the salary range. Increases higher than 10% or the first quartile must be approved by the System Office, Staffing HR Consultant.

d. MGEC: The employee shall be paid for all such hours at the employee's current salary

when assigned to work in a lower or equal class, or at a rate within a higher range which is equal to the minimum rate for the higher class or at least one step higher than the employee's current salary, whichever is greater. The limit for granting increases on work out of class shall follow the criteria specified in Section 6A of this document on promotion. Increases greater than what is allowed in Section 6A must be approved by the System Office, Staffing HR Consultant.

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Section 8 – Exceptions to Delegated Salary Authority

Applicability: This section contains situations in which MnSCU’s delegated salary authority does not extend. The following situations are stipulated by MMB: Guidelines: A. Salary Above Maximum:

Pre-approval is required by MMB Compensation for all salaries above the maximum of an applicable salary range (e.g., demotion in lieu of layoff), except in cases where collective bargaining agreement/plan provisions may require salary retention above the maximum (e.g., reallocation downward, class transfer). See MS. 43A17, Subd 5 (https://www.revisor.mn.gov/statutes/?id=43A.17).

B. Reinstatements:

Pre-approval is required by MMB Compensation for any reinstatements above the step/rate the employee was at when he/she separated from the class.

C. Unusual Employment Situation Increases:

Upon the request of the appointing authority, and when the Commissioner of MMB determines that changes in employment situations create difficulties in attracting or retaining employees, the Commissioner may approve an unusual employment situation increase to advance an employee within the compensation plan per MS 43A.17, Subd 3. These increases are reported to the Legislative Coordinating Commission within three days of approval. These requests are rare and should only be considered in unusual situations in consultation with the MMB Compensation Unit.

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APPENDIX A

Definitions:

A. Change in Allocation: “Change in allocation” means reclassification resulting from abrupt, management-imposed changes in the duties and responsibilities of a classified position. See Minnesota Statutes § 43A.02, Subd. 4 and Subd. 9 (https://www.revisor.mn.gov/statutes/?id=43A.02).

B. Demotion: The movement of an employee to a class assigned to a salary range that is two (2) or more steps lower, at the maximum, than their previous class. See Minnesota Statutes § 43A.17, Subd. 5 (https://www.revisor.mn.gov/statutes/?id=43A.17).

C. Emergency Employee: An employee appointed to a position for a maximum of 45 working days. No employee filling an emergency appointment may be employed by an Appointing Authority for more than 45 working days in any floating 12-month period. Any portion of a shift worked by an employee filling an emergency appointment constitutes one (1) day worked. See Minnesota Statutes § 43A.15, Subd. 2 (https://www.revisor.mn.gov/statutes/?id=43A.15).

D. Initial Appointment: Candidate hired who is from outside state service or is being hired from a position within IFO, MSCF, MSUAASF, or Administrators’ (Personnel) Plan.

E. Mobility: A voluntary, but limited, assignment of an employee to alternative duties in another state agency, public jurisdiction, federal government, private industry, or another Appointing Authority within the department. There are three (3) forms of mobility: 1. Intra-agency: When an employee moves to another job with a different Appointing Authority

within his/her own agency. 2. Inter-agency: When a state employee goes to another state agency for a specific period of time

to provide a service or to perform duties outside their normal job. (An example would be an employee moving from one college/university to another.)

3. Inter-change: When the State sends or receives an individual from another governmental unit or the private sector -- a situation which requires that a written agreement describing the terms and conditions of employment and a Contract for Services Agreement be submitted to the Department of Administration. See MMB Administrative Procedure 1.1 (http://www.mmb.state.mn.us/doc/proc/01-1.pdf).

F. Pay Plans or Compensation Plans: The Managerial Plan establishes the compensation, terms and conditions of employment for all classified and unclassified employees in positions identified by the Commissioner of MMB as managerial. See Minnesota Statutes § 43A.18, Subd. 3 (https://www.revisor.mn.gov/statutes/?id=43A.18). The Commissioner’s Plan establishes the compensation, terms and conditions of employment for all non-managerial classified and unclassified employees (except unclassified employees of the legislative and judicial branches) who are not covered by a collective bargaining agreement and who are not otherwise provided for in law. See Minnesota Statutes § 43A.18, Subd. 2.

G. Promotion: The movement of an employee to a class assigned to a salary range that is two (2) or more steps higher, at the maximum, than their previous class or which requires an increase of two (2) or more steps to pay the employee at the minimum of the new range.

H. Reallocation: “Reallocation” means reclassification resulting from significant changes over a period of time in the duties and responsibilities of a classified position.

I. Reinstatement: Appointing a former or current state employee to a class in which they previously had permanent or probationary classified status. Reinstatement must be within four years of separation from the class.

J. Recall from Layoff: Candidate hired from a layoff list. This may be return to state service to the job class from which laid off or return to a higher job class after taking a demotion in lieu of layoff.

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K. Recomparison: “Recomparison” means a change in the classification (whether gradual or abrupt) to which a vacant or occupied position in the unclassified service is compared (allocated). The new job class may be higher, lower, or equal, but the position and incumbent, if any, remain unclassified.

L. Statutory Unclassified: Those employees appointed under the provisions of Minnesota Statutes § 43A.08, Subd. 1 and Subd. 1a (https://www.revisor.mn.gov/statutes/?id=43A.08). Employees in these positions serve at the pleasure of the Governor or the Chancellor. MnSCU employees in these positions include presidents, vice-presidents, deans, other managers and professionals in academic and academic support programs, administrative or service faculty, teachers, or research assistants.

M. Temporary Classified: An appointment in accord with M.S. 43A.15, Subdivision 3, with a definite ending date. Employees can be appointed to temporary positions in the classified service for a period not to exceed 12 months in any 24-month period in any one agency. See Personnel Rule 3900.8300 and Minnesota Statutes § 43A.15, Subd. 3(https://www.revisor.mn.gov/statutes/?id=43A.15).

N. Temporary Unclassified: Those employees appointed under the provisions of Minnesota Statutes § 43A.08, Subd. 2a (https://www.revisor.mn.gov/statutes/?id=43A.08). These employees can only be in professional, supervisory, or managerial positions and the duration of their appointment is for a limited period, not to exceed three (3) years. (These positions often are referred to as Rule 10, since Civil Service Rule 10, long since abolished, created the procedure for establishing these positions which are short-term project in nature.)

O. Transfer: The lateral movement of an employee between positions: 1. In the same class in different agencies or organizational units; or 2. In different classes which are assigned to the same salary range; or 3. In different classes assigned to salary ranges which differ by less than two (2) steps at the

maximum; or 4. In different classes assigned to salary ranges which differ by less than two (2) steps at the

maximum but differ by more than two (2) steps at the minimum if less than a two (2) step increase is required to pay the employee at the minimum of the new range. See Minnesota Statutes § 43A.17, Subd. 6 (https://www.revisor.mn.gov/statutes/?id=43A.17).

P. Work Out of Class: When an employee is: A. Assigned to perform substantially all of the duties of a position allocated to a different class; and B. That position is temporarily unoccupied; and C. The work out of class assignment exceeds ten (10) consecutive working days. (Exception for

AFSCME only – if an employee is assigned work out of class, but does not meet the ten (10) consecutive working day standard and within five (5) working days the employee is subsequently assigned to work out of class to the same assignment, prior time served on work out of class will count toward meeting the ten (10) consecutive working day standard). See MMB Administrative Procedure 17.1 (http://www.mmb.state.mn.us/doc/proc/17-1.pdf).

Q. Work Out of Class Pay Differential: A) Employee must meet standards on #A, B, and C above. B) If the move were permanent, it would be a promotion. C) The assignment is from a classified position to a classified position.

See applicable Labor Contract or pay Plan for specifics.

APPENDIX B: Minnesota State Colleges and Universities Documentation for Salary Decisions

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Complete for all salary requests/recommendations for compensation approval. Institution Name: Date: Check Reason for Request: Initial Hire, Rehire, Rehire-Temporary, Rehire-Emergency, Reinstatement, Recall from Layoff, Transfer, Promotion, Demotion, Mobility, Work Out of Class Assignment, Other- Candidate Information Salary requested for candidate

Candidate Name: Rate & Step: Classification Code & Title: Department: Campus/Location: Working Title of Position: Requisition # (if applicable):

Salary history for current or prior State employees

Current/Most Recent Rate & Step: Current/Most Recent Classification Code & Title: Hire Date: Separation Date (if applicable): Department: Location:

Candidate Qualifications Directly Related Education

Degree: Field: Related Certification(s)/Licensure(s):

Directly Related Experience

Paid Experience Full-time (# years/months): Part-time (# hours/week and # years/months): Volunteer Experience Full-time (# years/months): Part-time (# hours/week and # years/months): (Note: Internships that are part of a degree program are counted towards the degree, not as separate work experience.)

Directly Related Specialized Competencies/Skills

Competencies/skills above and beyond requirements valuable to this position:

APPENDIX B: Minnesota State Colleges and Universities Documentation for Salary Decisions

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Internal Equity of Current Employees in this Classification/Option Job Title/Employee Name

Current Step & Salary

Years of Experience

Education

Note: If necessary attach a separate sheet. Briefly note past practice when hiring into this class/series as it relates to setting salaries: Recruitment Challenges Availability of Qualified Candidates

Number of applicants: Number of applicants who met the minimum qualifications: Number interviewed:

Other Recruitment Issues

External Labor Market issues pertinent to the situation: Other Market Considerations: Turnover issues: Training considerations: Other (please describe):

For Promotions

Date of next scheduled anniversary increase: Special training investments in candidate:

Please Attach

1. Copy of candidate’s resume or application. 2. Copy of position posting or job advertisement.

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APPENDIX C: Compensation Delegation Summary The following information summarizes the compensation decisions that have been delegated to the chief human resources officers or presidents.1 Advance written approval from System Office Staffing and Compensation HR Consultant staff 2 is required to offer a salary in excess of the delegated compensation authority levels outlined below.

TYPE OF APPOINTMENT/COMPENSATION CHANGE

Contract/Plan

Initial Hire

Promotion Work Out Of Class (to a

classified promotional class)3

Transfer/Demotion4 MNSCU Contact

AFSCME Up to and including step 3. Must grant at least 1 full step or minimum of the new range, whichever is greater. May grant up to 3 steps or step 3 of the new range, whichever is greater.

Same as promotion. Generally, no salary change on voluntary transfer or demotion EXCEPT to bring salary up to the new minimum on transfer or down to the new maximum on demotion. If reallocation results in demotion or transfer, retain current salary even if over maximum.

System Office Staffing & Compensation HR Consultant

Commissioner’s Plan5

Up to and including 12% of minimum.

Must grant at least 3.5% or minimum of new range, whichever is greater. May grant up to 12% or midpoint of the new range, whichever is greater.

Same as promotion. Same as above. Same as above.

Managerial Plan5

Up to and including 12% of minimum.

Must grant at least 3.5% or minimum of new range, whichever is greater. May grant up to 10% or to 1st quartile of the new range, whichever is greater.

Same as promotion. Same as above. Same as above.

MAPE Up to and including step 3 (Except: CTR = up to maximum).

Same as AFSCME above. Same as promotion. Same as above. Same as above.

MGEC Up to and including step 3 Same as AFSCME above. Same as promotion. Same as above. Same as above.

MMA Up to and including step 3. Same as AFSCME above. Same as promotion. Same as above. 4 Same as above. MNA Up to and including

maximum. Must grant a rate which provides an increase in pay.

No discretion. Limited by contract to at least 1 step higher than permanent rate, or the minimum of the new range, whichever is greater.

Same as above. Same as above.

Personnel Plan for MnSCU Administrators6

Up to and including delegation limit.

Up to delegation limit of new range or up to 10% increase, whichever is greater.

No WOOC – use interim appointment.

No change in salary on appointment to position in same range.

System Office Staffing & Compensation HR Consultant

1. These guidelines apply to classified and unclassified appointments regardless of employee’s status or employment condition. No salary change is allowed upon movement between temporary and unlimited appointments within the same classification unless there is a break in service. Campuses have System Office Staffing & Compensation HR Consultant staff approval to hire seasonal employees into temporary appointments in the same classification during their seasonal layoff at their seasonal rate of pay.

2. System Office Staffing & Compensation HR Consultant staff has authority to grant approval beyond the campus level of authority up to the maximum of the salary range. 3. Use the Work-Out-of-Class (WOOC) provisions applicable to the employee’s permanent classification, hourly rate, and bargaining unit. Use the salary range of the class to which the WOOC assignment is made to determine

minimum of range and 1 step increase or other new rate for all WOOC appointments. If employee is on layoff list for the class to which they are assigned to work out of class, they are paid at the highest step attained in that class, or as provided above, whichever is greater. Reference MMB Administrative Procedure #17.1 – Work Out of Class for further information.

4. When a transfer between bargaining units/salary grids results in placement of the employee “off step” within the salary range, salary is maintained off step until the next progression increase is due. At that time, the employee is moved more than one step in order to grant a full step increase AND place the employee on-step within the range. Exception: employees in MMA are moved to the nearest higher step effective immediately upon transfer between bargaining units/salary grids. Refer to MMB Administrative Procedure #15.6 and relevant bargaining agreement/plan provisions for additional information.

5. All requests to offer a hiring incentive must be approved in advance by System Office Staffing & Compensation HR Consultant staff and the Commissioner of MMB. 6. Presidents may be granted additional delegation by the Vice Chancellor, Human Resources with prior notification to Commissioner of MMB.