Policy on Salary Reductions for Faculty and Other Academic Appointees Q&As

General Temporary Salary Reductions

1. What notice will be provided for general salary reductions?
   An employee will receive notice before the pay period in which the reduction takes effect.

2. What academic titles or positions can be affected by general salary reductions?
   General salary reductions under this policy may be applied to faculty and other employees on academic appointments. This includes tenured and tenure track faculty, NTT faculty, unranked faculty, and other employees on non-regular academic appointments.

   General salary reductions may be limited to employees on particular types of academic appointments, or may be applied in different amounts according to type of academic appointment.

   Student academic appointments (e.g. graduate teaching assistant) are excluded from this policy.

3. Can pay be reduced in the summer months of 2020 for faculty on 9-month appointments?
   If a faculty member is on a 9-month appointment and elected to be paid over 12 months, the pay that the individual is scheduled to receive in the summer months has already been earned and cannot be reduced. Therefore, faculty on 9-month appointments may not have summer deductions affecting pay earned during the academic year. Faculty on 9-month appointments can have pay reduced with advance notice starting with the September 2020 pay period.

   This does not prevent a prospective reduction for salary that would be earned during a summer appointment in 2020.

4. Can student academic appointments (e.g., graduate teaching assistants or graduate research assistants) be subject to general salary reductions under this policy?
   No, general salary reductions may not apply to the compensation of student academic appointments, such as graduate teaching or research assistants.

5. What is the maximum amount of a general salary reduction?
   Salary reductions will be in the smallest increments necessary, but may not exceed 25% under current policy.

   For employees who do not qualify for exempt status on other bases (such as the exemption for teachers), the reduction may not exceed an amount that would alter the employee’s University exempt status (i.e. temporary pay rate may not be less than $913 per week, which is an equivalent of $47,476 full-time annual).

   For employees on H-1B visas, there must first be a review to determine whether an amended petition is required before the salary reduction can take effect.

6. How long can a general salary reduction last?
   Salary reductions will be for the shortest period of time necessary, but no longer than one year under current policy.
7. Does a general salary reduction affect an employee’s FTE level or assigned duties?
   No. It only affects salary.
8. Can a general salary reduction be applied to a particular college, school, or department?
   Yes.
9. Can the amount of a general salary reduction be varied according to employees’ salary levels?
   Yes.
10. Can a general salary reduction apply to employees with grant-funded salaries?
    Yes.
11. Does a general salary reduction apply only to base salary, or does it apply to other types of pay?
    Unless otherwise indicated by the chancellor, a general salary reduction is intended to apply not only to base salary but also to other types of pay, such as stipends, extra compensation, incentive pay, etc.

Criteria-Based Salary Reductions

12. What academic titles or positions can be affected by criteria-based salary reductions?
    The policy describes standards and processes for criteria-based salary reductions for tenured faculty.
     
13. What criteria will be used to determine a criteria-based salary reduction?
    The criteria must rely on published departmental standards for satisfactory performance or objective and documented indicators of productivity, budget, enrollment or workload needs.
     
14. How will criteria be established?
    They may be established by the chancellor on a university-wide basis, or they may be developed by a college, school, department, or other similar unit for use within that unit and submitted to the chancellor for approval.
     
15. Can a faculty member seek review of a criteria-based salary reduction?
    Yes. The faculty member may seek review of the reduction by submitting a written request to the provost within 5 days of being notified.
     
16. What is the maximum amount of a criteria-based salary reduction?
    The salary reduction may not be more than 25 percent.
     
17. What notice will be provided for criteria-based salary reductions?
    For a salary reduction based in whole or in part on performance or productivity criteria, the reduction will go into effect no earlier than the beginning of the next academic year after the faculty member receives notice. For a salary reduction based only on criteria concerning budget, enrollment or workload needs, the faculty member will receive notice before the pay period in which the reduction takes effect.
     
18. Does a criteria-based salary reduction affect an employee’s FTE level or assigned duties?
    If a criteria-based salary reduction is 10 percent or more, it will be accompanied by a commensurate reduction in FTE if requested by the faculty member. For example, if faculty member’s salary is reduced by 15 percent, the faculty member may remain at a 1.0 FTE level or may have their effort reduced to a .85 FTE level. The faculty member’s salary and assigned workload would both be 15 percent less than before.
     
19. How long can a criteria-based salary reduction last?
    A criteria-based salary reduction sets a new salary level for the faculty member, which remains for an indefinite period of time.

Salary and FTE Reductions for Employees on Term Academic Appointments

20. What academic titles or positions can be affected by salary and FTE reductions for employees on term academic appointments at renewal?
    Ranked NTT faculty, unranked faculty (such as adjuncts, instructors, lecturers), and other employees on non-regular academic term appointments (such as research associates, research assistants). 
     
21. What are the reasons for salary and FTE reductions at renewal?
    Salaries may be reduced at the time of renewal for any mission-related reason. Examples include budget matters, performance, curricular needs, availability of extramural funding, contribution to strategic areas of focus.
     
22. What notice will be provided for salary or FTE reductions at renewal for employees on term academic appointments?
    The employee will receive notice in the appointment renewal. 
     
23. What is the most a salary may be reduced when a contract is renewed?
    For a benefit-eligible employee, a salary reduction at contract renewal may not be more than 25 percent unless the position is being laid off pursuant to CRR 350.051. 
     
24. What is the most the FTE may be reduced when a contract is renewed?
    An FTE reduction at contract renewal should not reduce a benefit-eligible employee’s FTE level below .75 unless the position is being laid off pursuant to CRR 350.051.
     
25. Can both salary and FTE be reduced at renewal?
    Yes. But the combination of both may not reduce a benefit-eligible employee’s compensation by more than 25 percent unless the unless the position is being laid off pursuant to CRR 350.051.
     
26. Can an employee on a term academic appointment who has been subject to a temporary general salary reduction also be subject to a reduction in salary or FTE level at time of renewal?
    Yes.
     
27. How long does a salary or FTE reduction at renewal last?
    The salary or FTE reduction at renewal sets the new salary or FTE level for the employee and may last through the new term of appointment.

Other

28. Can an exempt employee’s salary be reduced below the salary threshold for exempt status?
    For employees who do not qualify for exempt status on other bases (such as the exemption for teachers), the reduction may not exceed an amount that would alter the employee’s University exempt status (i.e. temporary pay rate may not be less than $913 per week, which is an equivalent of $47,476 full-time annual).
     
29. Can a non-exempt employee’s salary be reduced below the salary threshold for non-exempt status?
    For non-exempt employees, the reduction may not bring the individuals pay rate below $8.60/hour before July 1, or $9.45 after July 1, 2020.
     
30. Can salaries or FTEs of employees on H-1B visas be reduced?
    There must first be a review to determine whether an amended petition is required before the salary or FTE reduction can take effect.  Consult with your university’s office responsible for visa matters before proceeding.
     
31. Can salaries of employees on Optional Practical Training (OPT) be reduced?
    Yes.

Reviewed: 05/04/2020