501: Classified Pay
Payroll Policy and Procedure Manual
Section 500: Payment of Classified and Temporary Employees
Effective: 01/01/2001
Revised: 12/27/2011
- 501 Classified Pay
- 501-01 Payment Process
- 501-02 Job and Labor Distribution Forms
- 501-03 Pay Method – Hourly / Default Pay
- 501-04 Social Security Exemption
- 501-05 Accounting for Labor Charges
Definition
Classified Position
A position represented by the Service Employees International Union (SEIU), Local 503, Oregon Public Employees Union (OPEU) and the Graphic Communication International Union (GCIU).
Temporary Employee
A person hired through a temporary appointment to meet emergency, nonrecurring or short-term workload needs for a period of not more than 1040 hours.
Background Information
| Classified Appointment Information Matrix | ||||
| Category | Salaried | Hourly | Summer Position | Temporary |
| Position | C3XXXX | C3XXXX | C3XXXX | C4XXXX |
| Suffix | 00 | 00 | 33 | 00 |
| Earn Code | REG | REG | SMN | OCH |
| Account Code | 10301 | 10301 | 10301 | 10410 |
| Emp E-Class | CA CB | CD CE | CE | TS |
| Job E-Class | CA CB | CD CE | See primary position | TS |
| Pay Schedule | Monthly | Hourly | Hourly | Hourly |
| Job Form | Classified | Classified | Classified | Temporary |
Procedure
501 Classified Pay
501-01 Payment Process
Business Center personnel complete employment registration process which includes processing an OSU job application, personal demographic form, I-9, W-4 and job form within the Business Center’s HR section. After logging onto the Oregon State Central Administrative Resources (OSCAR) website, click on "Online Tasks" - "Hiring Employee" - "Classified" and complete the appropriate online tasks.
501-02 Job and Labor Distribution Forms
501-02a Job Form
- The Job Form is used to authorize pay for initial appointments, report changes in appointment percentage and/or appointment type, and to report job-end dates when an individual will continue to be employed by the University but is moving to another position.
- To obtain this form, log onto OSCAR, click on "Online Tasks" - "Hire employee" - "Classified".
- Job forms should be routed to OHR.
501-02b Labor Distribution Form
- The Labor Distribution Form is used to report changes to prior, current, or future distributions. Business Center personnel who have had PYAREDS (redistribution) training may enter changes affecting prior months. Any changes to labor distributions affecting a prior fiscal year must be approved by either the Office of Post Award Administration for grants, all others by the Asst. Director of Business Affairs.
- To obtain this form, log onto OSCAR, click on "Online Tasks" - "Payroll Changes" scroll to "Miscellaneous" - " Labor Distribution form" (excel format). It is also available in the Downloadable forms section.
- Initial job forms include a labor distribution field and is entered and archived by Business Center personnel.
501-03 Pay Method - Default / Hourly Pay
501-03a Hourly Pay
- All hourly-paid classified and temporary classified employees are paid based on actual hours worked at a previously determined hourly pay rate. Percentage-based differentials (identified as Premium Pay) will be calculated through the Banner payroll process. Differentials based on an hourly rate, work out of class pay, and overtime are input during the time-entry process.
- Pay is issued for the period from the 16th of the prior month through the 15th of the current month and is paid to the employee on the regular payday at the end of the month. The pay is identified as current month pay based on the date it is issued.
- Payroll data is entered in PYAHOUR during time entry each month. Refer to the Payroll Calendar for specific dates.
- Refer to Classified Earn Codes for the correct Earn Codes and Account Codes to use.
501-03b Default Pay
- All salaried employees are paid by the Default Pay method (often referred to as forecast pay). Default pay is applicable for monthly salary and percentage-based differentials such as Campus Security Differential (DCS) and Bilingual Differential (DBL). These differentials are identified as Premium Pay on the list of Classified Earn Codes.
- Pay is issued for the period from the first of the month through the end of the month and is for the current month.
501-03c Computing FLSA Overtime on Premium Pay
The Fair Labor Standards Act (FLSA) requires that certain types of employee compensation (premium pay) must be included in the calculation of overtime compensation. This additional compensation (earn code OTD) applies to FLSA overtime, which is time actually worked in excess of 40 hours per work week.
| Commonly Applicable Earn Codes | |
| DCO | Confined Space Differential |
| DDV | Diving Differential |
| DEL | Electrician Differential |
| DHM | High Work Differential |
| DNL | Nucr. React. Lic. Differential |
| DPP | Prior Month Differential |
| DSH | Shift Differential |
| DSO | Sea Pay Crew Differential |
| PSB | On Call Pay |
Please contact Payroll if you have questions on overtime for other types of pay, such as Work-Out-of-Class Pay (DWC), multiple pay rates, or piece work.
501-03c(1) Computation Method
Two alternatives are available for calculating additional overtime on premium pay: formula or coefficient table. Use of the coefficient table (prepared by U.S. Department of Labor) is recommended.
Example Using the Coefficient Table:
An employee who works 42.5 hours in one work week may have additional overtime on premium pay. Overtime on premium pay can be calculated by multiplying the premium pay amount by the coefficient found on the coefficient table. In this case you would multiply the premium pay by the coefficient .029, which can be found row labeled 42 FLSA Hours and under column 0.50. Additional overtime compensation should be entered in PYAHOUR using earn code OTD.
Earn Code Units Special Rate
OTD 1 Amount Owed
Click here to see the complete coefficient table. Click here to see examples.
Using the Formula Method:
The formula below may be used to determine the amount of additional overtime on premium pay: Overtime for each work week must be calculated separately.
Total Premium Pay Earnings X FLSA Overtime Hours Worked = Rate for FLSA Overtime Premium Pay
Total # of Hours Worked 2
Example #1:
| Day | Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
| REG | 8 | 8 | 8 | 8 | 8 | ||
| OTM | 1.75 | 11 | |||||
| DSH | .75 | 11 |
This employee has worked a total of 52.75 hrs in a week and 11.75 hrs of shift differential. (Note: premium pay earnings in this example is 11.75 X .75 = $8.81).
| Formula: 8.81 X 12.75 = $1.06 52.75 2 |
OTD would be entered as OTD 1 @ 1.06 |
Table:
Go to 52.75 on the table. The coefficient to use is .121, and multiplies by premium pay earnings during overtime. (8.81 X .121 = 1.06)
Example #2:
| Day | Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
| REG | 8 | 8 | 8 | 8 | 8 | ||
| OTM | 2 | 2 | 2 | 2 | .5 | 2 | |
| DSH | 1 | 1 | 1 | 1 | 2 |
This employee has worked a total of 50.5 hrs this week and 6 hrs of shift differential. (Note: premium pay earnings in this example is 6 X .75 = $4.50).
| Formula: 4.50 X 10.5 = $.47 50.5 2 |
OTD would be entered as OTD 1 @ .47 |
Table:
Go to 50.5 on the table. The coefficient to use is .104, and multiplies by the premium pay earnings during overtime. (4.50 X .104 = .47).
501-04 Social Security Exemption
Classified employees are not eligible for exemption from Medicare and Social Security withholding.
501-05 Accounting for Labor Charges
Labor is charged to specific indexes and account codes. Use of activity codes is the choice of the department.
501-05a Index
- Department index must be an open index owned by the employing department.
- Department index must remain open through the last day of the month payment is issued to the employee.
501-05b Account Code
Refer to Classified Earn Codes for account code information.
