900.00 Classification and Compensation
- Table of Contents
- 905.00 Statewide Classification System
- 905.10 References
- 905.20 Overview
- 905.30 Establishing Classified Positions
- 905.40 Reclassifying Existing Positions
- 905.50 Temporary Reclassification
- 905.60 Classification and Wage Appeals
- 905.70 Restructuring a Position to Avoid a Downgrade
- 905.80 History
910.00 Classified Pay Rules
- 910.10 References
- 910.20 Pay Plan Rules
- 910.30 Exceptions to Pay Plan Rules
- 910.40 Approval Process for Exceptions
- 910.50 Demotions - Rule #1812
- 910.60 Promotions - Rule #1809
- 910.70 History
915.00 Overtime/Compensatory Time
- 915.10 References
- 915.20 Employees Eligible for Overtime
- 915.30 Overtime Compensation Rates
- 915.40 Reporting Overtime
- 915.50 Compensatory Time for Non-Exempt Employees
- 915.60 Overtime-Exempt Employees
- 915.70 History
920.00 Holiday Pay
- 920.10 References
- 920.20 Eligibility
- 920.30 Compensation for Work Performed on Holidays
- 920.40 History
925.00 Payroll Categories
- 925.10 References
- 925.20 Categories
- 925.30 History
930.00 Payroll Periods
- 930.10 Procedures
- 930.20 History
935.00 Time Keeping and Reporting
- 935.01 Individual Time and Attendance Reporting
- 935.02 Reference
- 935.03 Introduction and Purpose
- 935.04 Policy
- 935.05 Procedures
- 935.06 Internal Controls
- 935.10 Departmental Time and Attendance Reporting
- 935.11 Timesheet Reporting Deadlines
- 935.12 Formats for Time Keeping and Reporting
- 935.13 Timesheet Completion
- 935.14 History
940.00 Work Schedules
- 940.10 Normal Work Schedules
- 940.20 Schedule Adjustments
- 940.30 History
945.00 Partial Month Pay Calculations
- 945.10 Reference
- 945.20 Salary Adjustment Calculations
- 945.30 Salary Adjustments by Appointment Type
- 945.40 History
- 950.10 Reference
- 950.20 Procedures
- 950.30 History
955.00 FTE, Monthly Salary and Salary Rate
- 955.10 Reference
- 955.20 Calculations
- 955.30 History
960.00 FY/AY Conversions
- 960.10 Reference
- 960.20 Calculations
- 960.30 History
965.00 Additional Compensation
- 965.10 Reference
- 965.20 Applicability
- 965.30 Additional Compensation Request Form
- 965.40 Calculations
- 965.50 Exceptions
- 965.60 History
970.00 Outside Consulting
- 970.10 References
- 970.20 Policy
- 970.30 History
975.00 Terminal Leave Payoff
- 975.10 References
- 975.20 Payoff by Leave Type
- 975.30 History
980.00Overpayments and Underpayments
- 980.10 Overpayments
- 980.20 Underpayments
- 980.30 History
Modified November 2001
- 2-18-101 - 2-18-107 Montana Code Annotated
- Policy 3-0401, Montana Operations Manual, Classification Policy and Procedures.
- Policy 3-0505, Montana Operations Manual, Pay Plan Rules.
- Section 707, Montana University System Policies and Procedures, Classification.
The Classification Bureau of the State Personnel Division, Department of Administration, is responsible for development and administration of the classification system and the assignment of classifications to specific grade levels. Personnel and Payroll Services has been delegated authority for the administration of the classification system at MSU.
A. New Positions - To establish a new classified position, the supervisor completes a Position Description Form detailing the job duties and responsibilities which will be assigned. The form is submitted through the department head and dean/vice president for signatures and sent to Personnel and Payroll Services. After review by Personnel and Payroll Services, the supervisor is notified of the classification determination, and the department can then initiate the recruitment process.
B. Temporary Classified Positions - Departments may establish a temporary classified position for up to one year. To establish the position, the supervisor should complete a Position Description Form, indicating in Section I that the position is temporary. The position description and diskette are submitted through the department head and dean/vice president for signatures and sent to Personnel and Payroll Services. A classification review will be conducted by Personnel and Payroll Services, and the supervisor will be notified of the determination.
To request a reclassification review, a new Position Description Form should be completed by the employee or supervisor, documenting the current duties and responsibilities assigned. The form is then submitted through the supervisor, department head, and dean/vice president for authorization. If an intermediate supervisor does not agree with the description of responsibilities assigned, the form is returned to the immediate supervisor with the areas of concern or disagreement identified. Management's signatures at each level indicate that, to the best of their knowledge, the description is accurate.
Once the position description is received by Personnel and Payroll Services with all appropriate signatures, a position review is conducted with the incumbent and the supervisor. This review enables Personnel and Payroll Services to clarify and supplement the information which was submitted on the Position Description Form. Once the classification is determined, Personnel and Payroll Services notifies the supervisor of the determination. The reclassification is implemented when the department processes a Personnel Transaction Form to change the appropriate data in the employee's personnel record.
The effective date of a resulting grade change is the first of the month in which Personnel and Payroll Services receives the Position Description with all necessary signatures. If the supervisor indicates that the duties warranting the upgrade have not yet been assumed, the effective date will be the first day of the month in which those new duties are assigned to the position. Employees are encouraged to monitor the process of the paperwork through the required levels of approval to ensure a significant processing delay does not jeopardize the retroactive date. (Cross reference Section 910.00, "Classified Pay Rules," of this manual for pay calculations.)
Temporary reclassification is appropriate when a supervisor has assigned additional responsibilities to a position for a designated temporary period of time. It is not used when an employee is changing from one classified position to another. The additional responsibilities should be clearly defined and time estimates assigned to each new duty. The temporary time frame should be at least one month but no more than one year.
To initiate the review of a temporary reassignment of duties, the supervisor prepares a written request for review, which identifies the additional responsibilities which will be assigned to the position as well as any responsibilities that the position will not be fulfilling during this temporary period. In addition, the anticipated time frame for this reassignment of duties should be identified. This memo must be submitted through the employee's management to the appropriate dean or vice president for approval and then to Personnel and Payroll Services. Personnel and Payroll Services will make a classification determination and notify the supervisor of the decision. A PTF should be submitted to implement the appropriate changes. The effective date will be the first day of the month the memo was received in Personnel and Payroll Services with all required signatures, or the first day of the month when the duties are assigned, whichever is later.
The Montana Board of Personnel Appeals has established procedures for employees to appeal the classification of their positions. Employees may use the formal classification and wage appeal procedures either to initially request a classification review or to appeal an unsatisfactory classification decision. If an appeal is processed before a normal review has been conducted, an updated position description should accompany the appeal.
The appeal procedure is initiated by the employee by completing a "Board of Personnel Appeals Employee's Classification and Wage Appeal Form" which can be obtained from Personnel and Payroll Services. The classification and wage appeal procedures require identification of the issues motivating the appeal. The effective date of any grade change resulting from a formal appeal will be the first day of the month in which the employee submits the formal appeal to his/her supervisor.
The steps of the appeal process are:
A. Step I - Submit appeal form through immediate supervisor to department head. Department Head has 10 working days to review and return to employee.
B. Step II - Within five working days of response, the employee may submit the appeal form to MSU-Bozeman Personnel and Payroll Services. Personnel and Payroll Services has five working days to route to the Vice President for Administration for response to the employee. If Personnel and Payroll Services has not conducted a classification review, an extension will be required to provide time to conduct a review.
C. Step III - Within five working days of the Step II response, the employee may submit the appeal form to the Classification Bureau. The Classification Bureau has 30 working days to conduct a review and make a classification determination.
D. Step IV - Within ten working days of the Step III response, the employee may submit the appeal to the Montana Board of Personnel Appeals. If a preliminary investigation is conducted, a preliminary decision is submitted to the employee. The employee has ten working days to reject the preliminary decision, and request the Board to conduct a hearing. The Board has 90 working days after the hearing to issue its determination. A hearing may be conducted without a preliminary investigation.
The decision of the Board of Personnel Appeals is final.
After a classification review which resulted in a downgrade, the department may restructure the duties and responsibilities of the position to maintain its present classification. To initiate a request for postponement of the reclassification, the supervisor will submit a written request presenting the planned restructuring with a time frame for accomplishing this job redesign (usually no longer than three months). This request will be submitted through all levels of Administration to the dean/vice president for approval and then to Personnel and Payroll Services for review. If the request is approved, the reclassification will be postponed. A follow-up review will be made to determine if the position has been effectively restructured.
MSU Classified Personnel Manual Section 13:00, dated June, 1976. Revisions approved by the President on July 10, 1981. Other revisions approved by the Director of Administration June, 1982, May, 1984, and 1989. Revision approved by the Vice President for Administration on March 28, 1993. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Modified November 2001
- 2-18-301 through 312, "Compensation Determination," Montana Code Annotated.
- Section 802.4, "Pay Plan," Montana University System Policy and Procedures Manual.
The Pay Plan Rules are issued biennially by the State Department of Administration and are available from Personnel and Payroll Services.
Exceptions to pay plan rules are as follows:
A. Rule #1827 - In cases of difficult recruitment, MSU-Bozeman may grant pay exceptions to establish a starting salary within the range from the entry rate to the market rate for the grade.
B. Rule #1828 - With Department of Administration approval, MSU-Bozeman can:
a. establish the starting salary of a new hire above the market rate for the grade, and
b. adjust the salary of an existing employee because of special circumstances (such as retention problems).
C. Rule #1829 - With the approval of the Department of Administration and OBPP, MSU-Bozeman can adjust the pay of more than one employee because of recruitment and/or retention problems within a classification or classification series.
To request a pay plan exception, the department should submit a written request and justification to the dean and vice president. If approved, the vice president's office will forward the request to Personnel and Payroll Services. All requests require the approval of the Vice President for Administration. Requests for exceptions to Rule #1828 or #1829 also require approval of the Department of Administration. Pay exceptions for positions in a collective bargaining unit also require the approval of the Director of Labor Relations in the Office of the Commissioner of Higher Education.
When employees are downgraded through a reclassification or reassignment, the employee's new salary will be established at an amount which maintains the market ratio held at the former grade.
Exceptions to this rule require the department to submit the request and justification through the dean and vice president to Personnel and Payroll Services. The request will then be submitted to the Vice President for Administration for approval. These exceptions may be granted to establish the employee's salary within a range above the amount that would maintain the market ratio up to the employee's base salary, as long as the base does not exceed the maximum for the new grade.
For both reclassifications and position changes which result in promotion to a higher grade, the rules provide for establishing the new salary within a range from entry rate to an amount which maintains the employee's market ratio.
Section 14:00, "Definition and Application of the Compensation Plan," MSU Classified Personnel Manual, dated June 1976. Reviewed by MSU Personnel Board on November 20, 1984, and approved by Director of Administration on December 14, 1984. Revision approved by the Vice President for Administration on March 28, 1993. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Modified November 2001
- Part 541, Regulations, "Defining the Terms Executive, Administrative, Professional and Outside Salesman," Fair Labor Standards Act.
- Section 3-0210, "Compensatory Time and Overtime," Montana Operations Manual.
- Section 708.1.1, "Personnel," Montana University System Policy and Procedures Manual.
In accordance with Board of Regents policy 708.1.1, Montana State University has adopted the Department of Administration's rules on overtime and non-exempt compensatory time (3-0210), and this policy and procedure is intended to be in compliance with those rules.
Personnel and Payroll Services reviews all classified positions to determine whether employees assigned to those positions are eligible for overtime pay. The overtime designation of a classified position is a determination based on the Fair Labor Standards Act.
Each department determines the employee work schedules necessary to conduct its operations, subject to statutory and union contract provisions. The department may request reasonable amounts of overtime to meet its operational needs. Overtime must be authorized in advance by the supervisor, except in emergency situations.
Overtime compensation rates shall be one and one-half times the regular rate of pay for all time in a pay status in excess of 40 hours per week. Agricultural workers are not eligible for overtime, but may receive straight time for hours worked over 40 per week according to the established practice in the department or research center.
Employees are required to report all hours actually worked and any leave taken each pay period on their timecard. Calculation of the 40 hour week for employees eligible for overtime is based on time in a pay status, including any holiday, annual leave, and sick leave.
Refer to individual collective bargaining agreements as applicable.
Non-exempt employees may request compensatory time in lieu of overtime pay unless restricted by a collective bargaining agreement. Mutual agreement between the supervisor and the employee is required for overtime hours to be compensated as "compensatory time." Compensatory time may not be earned or used at the employee's discretion; the supervisor should approve in advance all compensatory time earned and taken.
Compensatory time is earned at one and one-half times the regular hourly rate for each hour in a pay status in excess of 40 hours per week. Compensatory time should be recorded in half-hour increments, and may be accumulated up to a maximum balance of 240 hours (equivalent to 160 hours of overtime hours worked). All compensatory time earned and taken should be indicated on the timesheet. Personnel and Payroll Services maintains compensatory time balances as part of the employee's record. Unused compensatory time balances for non-exempt employees will be paid off upon termination or if the employee's FLSA status changes from non-exempt to exempt.
Individuals employed in bona fide executive, administrative, professional, or farm worker capacities, as defined in the Fair Labor Standards Act, are exempted from the Act and are not eligible to earn overtime.
Compensatory time on an hour-for-hour basis may be earned if the department has approved the earning of compensatory time, and should be kept track of internally in the employee's department. The supervisor must approve in advance all compensatory time earned and taken. The granting of compensatory time for an exempt employee is at the discretion of management and is not an employee right.
If the supervisor authorizes compensatory time for an exempt employee, compensatory time may be accumulated up to a maximum balance of 160 hours at the end of any pay period. Compensatory time should be recorded in minimum of half-hour increments.
For overtime-exempt employees, unused compensatory time will not be compensated in cash under any circumstances, including termination, or used to extend an employee's termination date beyond the last day actually worked.
Section 15:00, Montana State University Classified Personnel Manual, dated June, 1986. Revisions approved by MSU Personnel Board on February 17, 1983, and Director of Administration on June 9, 1983. Reviewed by MSU Personnel Board on January 25, 1985, and approved by Director of Administration on May 7, 1988. Revisions approved by MSU Personnel Board on May 18, 1988, and approved by Director of Administration on June 30, 1988. Revision approved by the Vice President for Administration on September 17, 1992. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Revised August 1992
- Sections 1-1-216, 2-18-603, "Holidays," Montana Code Annotated.
- Section 801.5, "Holidays," Montana University System Policies and Procedures.
- Section 3-0325, "Holidays and Holiday Pay," Montana Operations Manual.
A. Fulltime Employees - To be eligible for holiday pay, an employee must be in a pay status on the regularly scheduled work day before the holiday. An employee returning to work from a no-pay status who reports to work on the work day following the holiday will receive compensation for the holiday.
When an employee transfers to another department immediately before a holiday and is in a pay status on the first day after the holiday, the receiving department shall pay the employee for the holiday.
A full time employee scheduled for a day off on a designated holiday will be entitled to receive a day off with pay, as mutually scheduled by the employee and supervisor. The alternate day should normally be within the same pay period.
Holidays for employees on alternate work schedules, including those allowed in lieu of the recognized holiday, occurring while an employee is on sick or annual leave are considered paid holidays and are not charged as sick or annual leave.
B. Part-time Employees - For part-time employees, holiday benefits will be based on the employee's FTE for the pay period in which the holiday falls. Holiday benefits will not exceed 8 hours.
If a part-time employee works an irregular schedule, the employee may need to take additional time off or work additional hours in the week the holiday falls.
C. Employees With Alternate Work Schedules - Full time employees normally scheduled to work more than 8 hours on a holiday will only receive 8 hours of holiday pay. They may take the additional hours as annual leave or leave without pay, or with the supervisor's approval, they may work the additional hours on another day during the same week.
D. Classified Hourly and On-Call Employees - Employees are paid holidays based on the ratio of actual hours worked to the total work hours in the month.
E. Temporary Classified Employees - Temporary classified employees are paid for holidays if they were in a pay status on the work day immediately before the holiday. Eligible employees are paid for the holiday based on the number of hours regularly scheduled for that day, not to exceed 8 hours.
F. Temporary Hourly Employees - Temporary hourly employees are not eligible for holidays.
An employee whose position is nonexempt from overtime (i.e., eligible for overtime) who works on a recognized holiday will be compensated at the rate of one and one-half time the regular hourly rate in addition to the regular pay for the holiday. For employees in positions which are exempt from overtime, the department may authorize compensatory time on an hour-for-hour basis. (Cross reference Section 920.00, "Holiday Pay," and Section 915.00, "Overtime/Compensatory Time," of this manual)
Section 16:00, MSU Classified Personnel Manual, dated June 1976. Reviewed by MSU Personnel Board on September 22, 1987, and approved by the Director of Administration on March 20, 1987. This revision reviewed by the Vice President for Administration on August 5, 1992.
Modified November 2001
- Section 702, "Appointment," Montana University System Policy and Procedures Manual.
- Section 310.00, "Types of Employment Contracts," MSU Faculty Handbook..
The following have been established as payroll categories for employees at Montana State University-Bozeman:
A. Contract Faculty - Instructional or research faculty appointed on a Board of Regents contract or Letter of Appointment.
B. Professional Staff - Non-tenure track employee appointed on a Board of Regents contract or Letter of Appointment who holds a non-instructional, non-research position.
C. Classified Salaried - Employee in a position classified according to the statewide classification system who is paid in monthly payments based on the FTE.
D. Classified Hourly - Employee in a classified position who is paid for actual hours worked in the month.
E. Temporary Hourly Non-Classified - Employee temporarily employed for up to 89 days or whose total hours will not exceed 347 hours in a twelve month period.
F. Temporary Classified/Fixed Term - Appointments that are not intended to be ongoing. Such appointments are normally limited to a specific time period, not to exceed one year, with no expectation of employment beyond the period specified.
G. Graduate Student - Employee in a graduate program receiving a stipend as a Graduate Research Assistant (GRA) or a Graduate Teaching Assistant (GTA).
H. Professional Hourly - Employee appointed on a Letter of Appointment who is paid on an hourly basis.
I. Non-Paid Faculty Affiliate - Employee who does not receive a salary but is affiliated with an academic department.
J. Non-Paid Emeritus - Retired individual not receiving a salary but honored with an emeritus status by the Board of Regents.
Employees will be paid according to the provisions of their payroll category. Employees in salaried positions receive equal monthly payments; those in hourly positions receive payment for the number of hours actually worked in each pay period.
Reviewed by the MSU Personnel Board on April 3, 1987, and approved by the Director of Administration on November 20, 1987. Revision approved by the Vice President for Administration on September 17, 1992. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Modified November 2001
The payroll period begins on the first working day of the month and ends on the last working day of the month. Payment for each month will be made on the 11th day of the subsequent month unless the 11th falls on a holiday or a weekend, in which case payment is made on the last working day prior to the 11th. To be included on the main payroll, the deadline for submission of PTF's (Personnel Transaction Forms) and other required paperwork is 5:00 p.m. on the 20th. If the 20th falls on a weekend or holiday, paperwork is due the last working day prior to the 20th.
A supplemental payroll is run two weeks after the main payroll for any changes processed after the main payroll deadline. For the supplemental payroll, the processing deadline is 5:00 p.m. of the first working day of the month.
Reviewed by MSU Personnel Board on April 3, 1987, and approved by the Director of Administration on November 20, 1987. Revision was approved by the Vice President for Administration on September 17, 1992. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Revised September 28, 2004
· Section 915.00, Overtime/Compensatory Time, MSU-Bozeman Personnel Policy and Procedures Manual
· 39-3-405, Overtime Compensation, Montana Code Annotated
· 29 CFR 516, Fair Labor Standards Act
Pay and benefits administration and legal obligations require that a record of actual hours worked be maintained on a daily basis for all employees eligible for overtime under the Fair Labor Standards Act (FLSA). These records should be maintained within the employing department for a period of two years, and may be subject to audit.
This policy specifically addresses time and attendance reporting procedures for temporary and classified employees who are eligible to earn overtime under FLSA.
Accurate records of leave usage must also be maintained for employees who are employed in classified, professional, or faculty positions and exempt under FLSA. See Section 935.10, Departmental Time and Attendance Reporting.
Montana State University-Bozeman has a legal obligation to pay employees for services performed during the pay period on the established payday. Accurate and timely reporting of an employee's time and attendance is a direct responsibility of the both the employee and the employee's immediate supervisor.
All departments must have procedures in place in the event overtime eligible employees request or are required to work additional hours (both overtime and compensatory time). Procedures should include an internal mechanism, such as a form, for the eligible employee to make the request, the supervisor to review the request and consider operational need and budgetary constraints, and a means for the supervisor to formally approve or deny the employee's request. When making such a request, the overtime eligible employee should specify the nature of the work that will be performed during the proposed additional hours, the number of proposed additional hours, and the date and time the additional hours would be worked. Sample forms are available from Personnel and Payroll Services. Departments may use alternate forms or methods for requesting and approving additional hours. Records indicating approval of additional hours must be maintained by the employing department for a period of two years.
Departments should have similar procedures in place for all employees to request leave usage.
Please refer to Policy 915.00, Overtime/Compensatory Time, for additional information regarding overtime and compensatory time.
The following are within an employee's area of responsibility:
- Being familiar with and adhering to departmental and institutional procedures regarding approval for overtime and compensatory time (comp time) worked, submittal of leave requests, and call-in procedures in the event the employee is not able to report for work at the start of their shift.
- Limiting overtime and comp time worked to hours requested or approved by the supervisor.
- Accurately recording all hours actually worked and leave taken on a daily basis.
Any individual who falsely reports time worked or leave used will be subject to disciplinary action, up to and including discharge. Employees will be required to repay the University or have subsequent paychecks docked for any wages received for hours not worked.
The items listed below are the direct responsibility of supervisors:
- Being familiar with MSU-Bozeman's policies and applicable collective bargaining agreements which govern hours worked, meal periods, overtime pay, compensatory time, holiday pay, and time reporting.
- Applying relevant policies, procedures, and collective bargaining requirements uniformly and consistently.
- Informing employees of departmental rules and practices relating to time and attendance, leave requests, requests to work additional hours, and call-in procedures.
- Reviewing employees individual monthly timesheets and verifying that any extra hours worked, whether overtime or comp time, were in fact approved and closely match the employee's original request, and that all hours reported reflect the actual time that an employee worked or used leave. Discrepancies will be discussed with the employee, and corrected if necessary, prior to the supervisor signing off on the employee's individual time and attendance report.
- Ensuring that employees do not work any additional hours for which the supervisor does not desire that the employer be charged.
Submitting or approving inaccurate time worked or leave used, or falsely reporting time worked or leave used, is a violation of MSU-Bozeman policy and may subject the person(s) to disciplinary action, up to and including discharge.
Department Head/Director Responsibility
Department Heads/Directors are responsible for the following:
- Monitoring compliance with time and attendance reporting policies within their respective departments, MSU-Bozeman policies and procedures, and applicable collective bargaining agreements.
- Ensuring that personnel and operational fiscal reports are reviewed promptly. Departments must review their fiscal reports for accuracy and correct any wage payment errors in a timely manner.
Each employee should keep track of hours worked and leave used on a daily basis; total hours worked and total hours of leave used should also be calculated for each workweek. Sample individual time and attendance reports may be obtained from Personnel and Payroll Services. Departments are free to create their own version of this form, as long as the pertinent information is recorded.
Employees should submit completed individual time and attendance reports to his/her immediate supervisor. Immediate supervisors are responsible for reviewing individual time and attendance reports for accuracy of both actual hours worked as well as leave used.
Upon approval, the supervisor will then forward individual time and attendance reports to the individual within the home department responsible for preparing the Master Departmental Timesheet provided by Personnel and Payroll Services. The Master Departmental Timesheet will include current departmental employees in each of the categories below. The Master Departmental Timesheet will also reflect each employees current leave balances, and will have areas to record the following information:
Temporary Hourly Employees
- Regular hours worked
- Overtime hours worked
- Overtime hours worked
- Extra hours worked
- Holiday hours worked
- Annual leave used
- Sick leave used
- Military hours used
- Leave without pay hours used
- Compensatory hours worked
- Compensatory hours used
Professional and Faculty Employees
- Annual leave used
- Sick leave used
- Leave without pay hours used
- Military hours used
Department Heads/Directors are required to sign off on the Master Departmental Timesheet. The signature of the Department Head/Director certifies that the hours recorded on the Master Departmental Timesheet are a true and accurate record of hours actually worked and leave used during the pay period. Further, this signature also serves as an affirmation that their department reconciles personnel and operational accounts on a monthly basis, and will report discrepancies in a timely manner.
Please note that individual time and attendance report timesheets are not required for employees who are on automated timekeeping systems. Work units with automated timekeeping systems are still required to have departmental process and procedures in place to verify that additional hours worked, leave taken, etc. was properly authorized.
All departments must ensure that proper internal controls have been established for ensuring accurate time reporting and payroll functions. The Internal Audit department is available to provide detailed recommendations on implementing effective procedures.
1. Departments should separate the duties of preparing Master Departmental Timesheets from handling paychecks and direct deposit slips for departmental employees.
2. Departments must reconcile personnel and operational accounts on a monthly basis and report discrepancies in a timely manner.
3. If paychecks and direct deposit slips are not immediately distributed to employees, they must be adequately secured by storing them in a locked and secure file, desk, cabinet, etc. If a paycheck or direct deposit slip has not been picked up by the employee after 5 days, the home department should mail it to the employee at that time.
Each department is responsible for submitting timecards/timesheets and leave reports for all employees in their department (except GRAs and GTAs) by noon of the first working day of the month following the pay period. For the supplemental payroll, the deadline for timecards/timesheets and leave reports is noon of the 6th working day.
Prior to the end of the month, Personnel and Payroll Services sends out preprinted timesheets or timecards for active employees in classified, professional/faculty, temporary hourly, college workstudy, and student labor positions. If an employee does not receive a preprinted timecard, a blank timecard should be used.
Leave eligibility dates are preprinted on the timesheet for employees earning annual and/or sick leave. Employees may use earned leave on or after this eligibility date. Employees taking leave prior to eligibility should report the hours as leave without pay (LWOP) and Personnel and Payroll Services will calculate the appropriate salary adjustment. Hourly rates are preprinted on cards for all hourly employees. A separate timecard will be printed for each hourly assignment held by an employee.
Military leave should be indicated on the timesheet, and a copy of the military orders must be on file with Personnel and Payroll Services before military leave is reported.
A. Professional/Faculty - Professional/faculty employees should report all leave hours used during the payroll month.
B. Professional Hourly - Professional hourly employees should record all hours worked and leave taken on the timesheet.
C. Classified - Classified salaried employees must record all leave taken on the timesheet. Classified hourly employees must record all leave taken and all hours worked on the timesheet.
Salaried part-time employees working more than their FTE should show any additional hours as extra hours worked; overtime hours should only be indicated if the total hours worked for the week exceeds 40 hours.
Salaried employees working less than their FTE should report "LWOP" for all hours not worked. For employees who do not work at all during the month, the department should make a notation on the timesheet of "No Pay Status" (if the leave is employer initiated) or "Leave Without Pay" (if the leave is employee initiated).
D. College Workstudy & Student Labor - Preprinted timecards are required for all college workstudy and student labor employees. These cards will be generated and distributed to the departments upon receipt of a referral form in Personnel and Payroll Services. Hours worked each day should be shown on the left side of the card, with the total hours shown in the space provided on the right side.
Reviewed by the MSU Personnel Board in April, 1987, and approved by the Director of Administration on November 20, 1987. Update approved by the Vice President for Administration on September 17, 1992. Modification approved by the Vice President for Administration & Finance on November 29, 2001. This modification approved by the Vice President for Administration & Finance on September 23, 2004
Revised September 1992
The normal work schedule in each department will be defined by the department head or director. For most administrative offices, it is 8:00 a.m. to 12 noon and 1:00 p.m. to 5:00 p.m., Monday through Friday.
Department heads/directors have the authority to approve employee requests for schedule adjustments. These requests should only be approved when they will not interfere with the effective operation of the work unit. (Cross reference Section 1065.00, "Attendance at Training and Professional Development Courses and Seminars," of this manual.)
Reviewed initially by the MSU Personnel Board on September 13, 1987, and in revised form on May 29, 1987, and approved by the Director of Administration on November 20, 1987. Revision reviewed by MSU Personnel Board on February 28, 1990, and approved by the Vice President for Administration on June 19, 1990. This revision approved by the Vice President for Administration on September 17, 1992.
Modified November 2001
- Section 801.03, "LWOP," Montana University System Policy and Procedures Manual.
Salary adjustments are calculated by Personnel and Payroll Services whenever a salaried employee starts or ends employment in the middle of the month, or has a change which affects the salary for that pay period. Examples of such changes are an FTE reduction, a salary increase, reclassification to a different grade, or leave without pay.
Employees whose salary rate or FTE changes during the month will be paid that month's salary based on the percent of days in the month at the old salary/FTE vs. the new salary/FTE.
A. Fiscal Year (FY) Appointments - Partial month payments are calculated for employees who are hired or terminate within the month, or who begin or end a "Leave Without Pay" or "No Pay Status" within the month. If the start or end date is not the first/last working day of the month, the salary for that month is based on the number of days worked in the month.
B. Academic Year (AY) Appointments - AY faculty and research professionals who start work after classes begin or terminate before the last day of classes will be paid for the portion of the month actually worked.
C. Semester (SM) Appointments - Faculty appointed for one full semester only will be paid 1/2 of their AY salary rate.
Initial version reviewed by MSU Personnel Board on January 20, 1987, and approved by the Director of Administration on March 20, 1987. Revision approved by the Vice President for Administration on September 17, 1992. This modification approved by the Vice President for Administration & Finance on November 29, 2001.
Revised September 1992
- Section 805, "Executive Perquisites," Montana University System Policy and Procedures Manual.
Perquisites are a value placed on items offered in lieu of wages as a term and condition of employment. Perquisites are typically board, living quarters, and vehicles. The monthly value of perquisites is not subtracted from the monthly salary paid.
Where such perquisites are requirements of the position, such as housing for an employee required to live at a research center, the value of the perquisites is not considered taxable, but may be included in total earnings for purposes of retirement calculations.
Section 14:07, "Perquisites," of this manual, revised and approved June 1976. Reviewed by the MSU Personnel Board on October 1, 1987, and approved by the Director of Administration on November 20, 1987. This revision approved by the Vice President for Administration on September 17, 1992.
Revised February 2009
- Section 103.01 VI, "Contract Terms," MSU Faculty Handbook.
A. FTE - FTE calculations are made by dividing the number of hours scheduled to be worked in a week by 40, or dividing the number of days in the average week worked by five. Total FTE may, at no time, exceed 1.0.
B. Salary Rate - An employee's salary rate represents the annual salary at a full time rate. Academic Year (AY) monthly salaries are determined by multiplying the AY salary rate by the FTE and then dividing by 9 or 10 to reflect the individual faculty's pay preference for a 9 or 10 month pay cycle; Fiscal Year (FY) monthly salaries are determined by multiplying the FY salary rate by the FTE and dividing by 12. Revised February 2009.
C. Semester Appointments - The AY (Academic Year) salary rate for an employee on a semester only appointment is determined by dividing the salary by the employee's FTE and multiplying by 2.
D. Administrative Component -The administrative component of the salary is shown on the PTF as a separate item but is included in the annual salary rate shown.
Section 14:06, June 1976, "Total Salary," Classified Personnel Manual. Approved by the Director of Administration March, 1987. This revision approved by the Vice President for Administration on August 5, 1992.
Revised December 1993
- Section 103.01, "Contract Terms," MSU Faculty Handbook.
Contracts for professional employees are either Academic Year (AY) or Fiscal Year (FY). Conversions of FTE and salaries are made when an employee changes from one type of contract to another. The calculations shown below are normally used in these circumstances. When a position is changed from an administrative to a faculty appointment, and its contract term changes from FY to AY, the administrative component is subtracted from the salary rate.
To convert salaries--
to AY: Full time FY salary rate x 0.82
to FY: Full time AY salary rate x 1.22
To convert FTE's--
to AY: FY FTE x 0.82
to FY: AY FTE x 1.22
When the above formula is not used, an explanatory note must accompany the PTF to document the justification for not using it. Employee's converting from FY to AY are eligible for annual leave lump sum payoff. If an employee chooses to retain balances, the lump sum payoff is deferred until termination or retirement.
Approved by the Director of Administration March 20, 1987. Revision approved by the Vice President for Administration on September 17, 1992. This revision approved by the Vice President for Administration on December 14, 1993.
Modified April 2006
- Section 1100.00, "Compensation in Excess of Contracted Salary," MSU Faculty Handbook.
Additional compensation for special assignments and projects may be paid to full-time, overtime exempt, classified employees and professional employees, who perform special services beyond their normal duties for which release time cannot be provided by their department. Classified employees who are eligible for overtime are not eligible for additional compensation. Any additional work assigned to an employee who is eligible for overtime, will be subject to the overtime/compensatory time policy [Section 915.00]. Additional compensation for faculty must meet the requirements of Section 1110.00 of the MSU Faculty Handbook.
Overtime exempt employees must obtain prior written approval of their supervisors to assume special assignments and projects for which additional compensation will be paid. An additional compensation request form should be submitted prior to the employee's performance of the additional responsibilities. These forms can be obtained from Personnel and Payroll Services. At the end of each pay period, an "additional compensation timecard" should be submitted along with the normal timesheet.
Additional compensation payments may not exceed 20% of the employee's annual base
salary for the fiscal year
[July 1 - June 30]. Payments for teaching assignments shall be commensurate with the payments of other similarly situated instructors.
The total additional compensation payment may be calculated one of two ways:
A. Determine the total payment to be made for the services, and indicate schedule
of payments (e.g. $2,000.
total payment, to be paid October - $500., November - $1,000., December - $500.).
B. Use an hourly rate and multiply it by the number of hours required to perform
the duties for which the
additional compensation is to be paid.
Exceptions to this policy must be approved by the appropriate Vice President.Approved by the Director of Administration January 1988. Revision approved by the Vice President of Administration September 1992. Modification approved by the Vice President of Administration November 2001. This modification approved by the Vice President of Administration April 2006.
Revised October 1992
- Section 1130.00, "Consulting," MSU Faculty Handbook.
- Section 401.01, "Consulting," Montana University System Policy and Procedures Manual.
Classified and professional employees who are engaged in outside consulting for a fee must make advance arrangements for annual leave or leave without pay for the time spent in providing consulting services during their normal work schedule. In addition, the guidelines set forth in Sections 440.00 and 1130.00 of the MSU Faculty Handbook on outside consulting apply for professional and classified employees in determining potential conflicts of interests. Whenever the potential exists for a conflict of interest because of an outside consulting activity, the employee should discuss the situation in advance with the immediate supervisor.
On an annual basis, employees are required to report all consulting activities for the prior year to the Vice President for Research.
Approved by the Vice President for Administration on October 5, 1992.
Revised August 1992
- 2-18-617 through 618, "Leave Time," Montana Code Annotated.
- Section 710, "Termination," Montana University System Policy and Procedures Manual.
A. Sick Leave - Employees who have been employed for 90 calendar days or more are eligible for 25% payoff of their sick leave balance upon termination, at the salary rate on the day of termination.
B. Annual Leave - Employees who have been employed for six calendar months or more are eligible for 100% payoff of their annual leave balance upon termination, at the salary rate on the day of termination.
C. Non-Exempt Compensatory Time - Classified employees who are in positions eligible for overtime pay (non-exempt from overtime) will have their balance of unused compensatory time cashed out on termination.
Approved by the Director of Administration on March 20, 1987. This revision approved
by the Vice President for Administration on August 5, 1992.
Personnel and Payroll Services will make every effort to ensure that employees are paid correctly. However, it is the responsibility of each employee to check his/her pay stub for accuracy. Any inaccuracies regarding compensation, leave accruals, or deductions should be brought to the attention of Personnel and Payroll Services within 4 working days. Employees must repay the full amount of any overpayment of salary regardless of the cause of overpayment or when it is discovered.
If Personnel and Payroll Services discovers an employee has been overpaid, the employee will be notified in writing of the amount of overpayment and the method by which the overpayment will be recouped. If the employee believes the amount of overpayment specified is incorrect, he/she must notify Personnel and Payroll Services within 5 working days of the notice of overpayment. Unless notified, Personnel and Payroll Services will assume the amount of overpayment is correct and will proceed with collection as outlined in the notice of overpayment or when it is discovered.
Overpayments may be collected by using one of three methods:
1. Whenever possible, overpayments will be collected by docking the employee's subsequent payrolls. The general guideline is that an overpayment can be collected over the same number of months the employee was overpaid. If an employee wants to know what his/her check will be if a dock is used, they may request a gross-to-net calculation from Personnel and Payroll Services.
2. An employee can pay back an overpayment by writing a personal check, payable to MSU, for the net overpayment. Personnel and Payroll Services can prepare a gross-to-net calculation for the employee.
3. Personnel and Payroll Services may obtain the original payroll warrant from the employee, cancel it and issue a special check for the correct amount due.
The employee may select any of the above methods for repayment, upon approval of Personnel and Payroll Services.
The same guidelines will apply in the event an employee is credited excessive leave accruals.
Underpayments may be corrected using one of two methods:
1. If the employee was not paid at all, the department may request that a special check be issued by Personnel and Payroll Services to the employee up to four working days following payday. A service fee may be assessed to the employee's home department if the error originated at the departmental level.
2. If an employee received partial pay, but not all that was due, then:
A. Whenever possible, Personnel and Payroll Services will issue the balance due on the next supplemental payroll (26th of the month).
B. The department may request that a special check for the balance due be issued to the employee. Personnel and Payroll Services will recalculate the entire gross-to-net amount due and pay the employee the difference between what was received and what is due up to four days following payday. A service fee may be assessed to the employee's home department if the error originated at the departmental level.
Personnel and Payroll Services, in consultation with the employee, will determine which method to use.
Adjustments for incorrectly low leave accruals will be made prior to the next main payroll.
Approved by Legal Counsel on February 12, 2003. Effective date: February 12, 2003. Review date: February 12, 2006. Reviewer: Personnel and Payroll Services.