Compensation
Philosophy
The compensation philosophy for the University of Memphis was established in 2012 and continues to serve as the cornerstone of it strategy. The University's multifaceted philosophy is as follows:
- Promote the growth and success, and recognition of the value of our employees
- Maintain and increase morale, reduce turnover, instill loyalty, and reward individual contributions and exemplary performance
- Attract and develop a diverse workforce
- Balance the need for internal equity and the desire to be market competitive
Position Classifications
Positions are classified based on several factors including the Department of Labor designation of exempt and non-exempt; position titles; duties and responsibilities; salary bands. Employees are compensated based on their position classification and their position within a salary band.
Salary Pay Bands
The University of Memphis utilizes a broadband approach to compensation. Broadbanding is the term applied to having wide salary bands, much more encompassing than with traditional salary structures. With this compensation approach, managers have greater opportunity to strategically compensate employees based on a several factors including unique skills or experience, market conditions, competitiveness of position and industry salaries. The University uses fourteen (14) bands to manage its compensation system.
| Pay Band | Minimum | Midpoint | Maximum |
|---|---|---|---|
| 00 | 1.00 | 100,000.00 | 1,000,000.00 |
| 01 | 14,137.50 | 21,913.13 | 29,688.75 |
| 02 | 15,551.25 | 24,493.22 | 33,435.19 |
| 03 | 17,417.40 | 27,867.84 | 38,318.28 |
| 04 | 19,855.84 | 32,265.74 | 44,675.64 |
| 05 | 23,032.77 | 38,004.07 | 52,975.37 |
| 06 | 27,178.67 | 45,524.27 | 63,869.87 |
| 07 | 32,614.40 | 55,444.48 | 78,274.56 |
| 08 | 39,789.57 | 68,637.01 | 97,484.45 |
| 09 | 49,339.07 | 86,343.38 | 123,347.68 |
| 10 | 62,167.23 | 110,346.84 | 158,526.44 |
| 11 | 79,574.05 | 143,233.29 | 206,892.53 |
| 12 | 103,446.27 | 188,789.45 | 274,132.62 |
| 13 | 136,549.08 | 568,274.54 | 1,000,000.00 |
EXEMPTION TESTS
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Basic Requirements for Claiming a White Collar Exemption under the Standard Duties
Test
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Executive
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Administrative
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Professional
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Salary Basis Test
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Employee must be paid on a salary basis
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Employee must be paid on a salary or fee basis
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Employee must be paid on a
salary or fee basis |
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Standard Salary Basis Test
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$455 per week ($23,660 per year for a full-year
worker) |
$455 per week ($23,660 per year for a full-year
worker) Special salary level for certain academic administrative personnel |
$455 per week ($23,660 per year for a full-year
worker) Salary level test does not apply to doctors, lawyers, or teachers |
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Standard Duties Test
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The employee’s “primary duty” must be managing the enterprise, or managing a customarily
recognized department or subdivision of the enterprise (and managing 2 full-time employees
as well).
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The employee’s “primary duty” must include the exercise of discretion and independent
judgment with respect to matters of significance.
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The employee’s “primary duty” must be to primarily perform work that either requires
advanced knowledge in a field of science or learning or that requires invention, imagination,
originality or talent in a recognized field of artistic or creative endeavor.
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