Pay Practices and Procedures: Prohibiting Improper Pay Deductions and Overpayments/Complaint Procedure for Pay Errors
The University's pay practices and procedures are governed by the Federal Fair Labor Standards Act (FLSA), its amendments, and its regulations. The University is committed to paying its employees in accordance with the requirements of the FLSA, relevant state and local laws, and University policy. Under the FLSA, positions may be classified as either "non-exempt" or "exempt." Non-exempt positions are not exempt from the overtime provisions of the FLSA. Exempt positions are exempt from the overtime provisions, although covered by other provisions of the FLSA. A position's classification is determined based on its specific job duties and salary in accordance with FLSA exemption criteria.
Employees in positions classified as non-exempt are paid either weekly or hourly and are compensated at the rate of time and one-half of their regular rate of pay for hours worked over forty in a workweek. For the purposes of calculating overtime, hours worked do not include vacation, sick, holiday or other paid or unpaid time off (see Policy 302).
Employees in positions classified as exempt are paid monthly, are not required by law to receive overtime pay for hours worked in excess of forty hours in a workweek, and receive a predetermined amount of compensation each month on a "salary basis." The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee's work. Subject to exceptions listed below, an exempt employee must receive the full salary for any workweek in which the employee performs any work, regardless of the number of days or hours worked. However, an employee does not need to be paid for any full workweek in which he/she performs no work, unless the cause is an operating requirement of the business. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available.
307.3 CIRCUMSTANCES IN WHICH THE UNIVERSITY MAY TAKE PAY DEDUCTIONS FROM EMPLOYEES IN EXEMPT POSITIONS
Full day deductions from pay are permissible when an exempt employee has exhausted his/her Paid Time Off (vacation) balance and: is absent from work for one or more full days for personal reasons other than sickness or disability; for absences of one or more full days due to sickness or disability if the deduction is made in accordance with the University's sick policies (see Policies 612, 613 and 404); for absences of one or more full days due to a court appearance for personal reasons (see Policy 610), or for absences of one or more full days due to military leave (see Policy 611). Also, the University is not required to pay the full salary in the initial or terminal week of employment or for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act (see Policy 631). In these circumstances, either partial day or full day deductions may be made.
307. 4 UNIVERSITY POLICY
The University strives to ensure that its positions are classified correctly and that those who are eligible for overtime compensation receive such compensation pursuant to the FLSA, Pennsylvania wage and hour law, and University policy. It is also University policy to comply with the salary basis requirements of the FLSA. Therefore, supervisors are prohibited from making any improper deductions from the salaries of exempt employees. We want employees to be aware of this policy and that the University does not allow deductions that violate the FLSA.
307.5 WHAT TO DO IF AN IMPROPER DEDUCTION OR OVERPAYMENT OCCURS
All employees should routinely examine every paycheck or advice received in a timely manner to ensure that no improper deductions or improper overpayments have been made, and to ensure no other errors. If an employee feels that an improper deduction or overpayment has been made, or there is another type of error, he/she should immediately contact his/her supervisor, department chair, or business administrator. If the problem is not appropriately addressed at this level, the employee should contact the Division of Human Resources, Office of Compensation (215-898-1317) to report his/her concerns. If the University determines that it made an improper deduction from a paycheck, it will reimburse for the improper amount deducted and take good faith measures to prevent improper deductions from being made in the future. In cases of improper overpayments, employees are expected to promptly repay the University in the amount of the overpayment. These arrangements can be made through the employee's supervisor and/or business administrator. If there is another type of error, the University will promptly take steps to resolve the matter.
307.6 NO RETALIATION
Retaliation directed against anyone merely because he/she has have lodged a complaint under this policy is strictly prohibited and will be grounds for disciplinary action, up to and including termination of employment. Any employee who feels he/she has been subjected to retaliation in violation of this policy should immediately contact his/her supervisor, department chair, or business administrator. If the problem is not appropriately addressed at this level, the employee should contact the Division of Human Resources, Office of Compensation (215-898-1317) to report his/her concerns.
307.7 UNIONIZED STAFF MEMBERS
University staff members covered by collective bargaining agreements should refer to the appropriate articles in their contracts regarding overtime pay, deductions and/or overpayments, if applicable.
Policy Number: 307
Effective Date: 12/02/2014
Supersedes Policy Number(s): 307 (02/02/2005)
Applicability: All University Employees
Cross-reference: Policy 302, Policy 303, Policy 404, Policy 601, Policy 610, Policy 611, Policy 612, Policy 613, Policy 631