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. Under the FLSA, positions may be classified as either non-exempt or exempt. Employees in non-exempt positions are not exempt from the overtime provisions of the FLSA. Employees in exempt positions are exempt from the overtime provisions, although covered by other provisions of the FLSA. The classification of a position as exempt or non-exempt is made by Human Resources in accordance with FLSA exemption criteria.
307.1 UNIVERSITY POLICY
The University is committed to ensuring that its positions are classified correctly, and that those who are eligible for overtime pay receive such pay in accordance with the requirements of the FLSA, relevant state and local laws, and University policy. It is the policy of the University to comply with the salary basis requirements of the FLSA. Therefore, supervisors are prohibited from making any improper deductions from the salaries of employees in exempt positions.
Employees in positions classified as non-exempt are on hourly compensation plans, are paid weekly, and are paid at the rate of one and one-half times their regular rates of pay for all time worked over 40 hours in a workweek. When calculating overtime at one and one-half times the regular rate of pay for all time worked over 40 hours in a workweek, Workday does not include holiday hours or time charged to sick leave, paid time off (PTO), and other paid leave balances in its calculations, as these are not considered hours worked (see Overtime Pay and/or Compensatory Time - Policy 302).
Employees in positions classified as exempt are on salary compensation plans and are paid monthly. They are not required by law to receive overtime pay for time worked over 40 hours in a workweek, and they receive a predetermined amount of pay each month. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee's work. Subject to the exceptions listed below, an employee in an exempt position must receive the full salary for any workweek in which he/she 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 University. If the employee is ready, willing, and able to work, deductions may not be made from his/her full-day salary for time when work is not available.
307.4 CIRCUMSTANCES IN WHICH THE UNIVERSITY MAY TAKE FULL-DAY PAY DEDUCTIONS FROM EMPLOYEES IN EXEMPT POSITIONS
Full-day deductions from pay are permitted when an employee in an exempt position has exhausted his/her Paid Time Off (PTO) balance and is absent from work for one or more full days: for personal reasons other than sickness or disability; due to sickness or disability, if the deduction is made in accordance with the University's sick policies (see Policies Sick Leave Accrued - Policy 612, Sick Leave and STD - Policy 613, and Short-Term Disability – Policy 404); due to a court appearance for personal reasons (see Time Off for Jury Duty and Court Appearance with Pay – Policy 610); or due to military leave (see Military Leave - Policy 611).
Additionally, the University is not required to pay the full salary in the initial or final week of employment, or for weeks in which an employee in an exempt position takes unpaid leave under the Family and Medical Leave Act (see Family and Medical Leave (FMLA) - Policy 631). In these circumstances, either partial-day or full-day deductions from pay may be made.
307.5 RESOLUTION OF IMPROPER DEDUCTIONS OR OVERPAYMENTS
If an employee believes that an improper deduction or overpayment, or another type of error, has been made, 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 Human Resources (215-898-7372) to report his/her concerns. If the University determines that it has made an improper deduction from a paycheck, it will reimburse the employee 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 required to promptly repay the University in the amount of the overpayment (see Overpayments - 2410). 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 because he/she has 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 that 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 Human Resources (215-898-7372) to discuss his/her concerns (see Policy Against Retaliation – 718).
307.7 UNIVERSITY STAFF WHO ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS
University staff members covered by collective bargaining agreements should refer to the appropriate articles in their contracts.
Policy Number: 307
Effective Date: 12/02/2017
Last Reviewed Date: 06/06/2019
Revised Date: 07/01/2019
Supersedes Policy Number(s): 307 (02/02/2005)
Applicability: All University Employees
Cross-reference: Overtime Pay and/or Compensatory Time - Policy 302, Short-Term Disability – Policy 404, Time Off for Jury Duty and Court Appearance with Pay – Policy 610, Military Leave - Policy 611, Sick Leave Accrued - Policy 612, Sick Leave and STD - Policy 613, Family and Medical Leave (FMLA) - Policy 631, Policy Against Retaliation - Policy 718, Division of Finance Policy: Overpayments - Policy 2410