COMPENSATION AND PERFORMANCE

Fair Labor Standards

UT Southwestern complies fully with the provisions of the Fair Labor Standards Act of 1938, as amended (the "FLSA"), in establishing wages, maximum hours, overtime pay, equal pay, child labor, and record keeping for covered employees. Pursuant to criteria established by the Wage and Hour Division of the Department of Labor,
UT Southwestern has established an official designation of "exempt" or "nonexempt" for each position at UT Southwestern. Whether your position is exempt or nonexempt depends on your duties, responsibilities, and salary. Title alone does not make a position exempt or nonexempt.

Exempt Employee

Certain employees who are paid on a salaried basis and employed in a bona fide executive, administrative, or professional capacity (including academic administrative personnel and teachers) are exempt from the minimum wage and overtime pay provisions of the FLSA. As a result, employees appointed to exempt positions usually do not receive compensatory time or additional pay for hours worked in excess of forty hours in a workweek.

Nonexempt Employee

Employees whose positions are designated as nonexempt are covered by the FLSA and must be compensated for all time worked and may not work over 40 hours per workweek without supervisory approval.

Performance Evaluations

As a new employee, your first 180 days of employment represents a critical
learning and adjustment period during which you and your supervisor will have
an opportunity to work together. During this period, your supervisor will be assessing your performance on a regular basis and providing you with feedback as you adjust to your duties. If, at any time during your probationary period, your supervisor determines that you are not making sufficient progress in the performance of your duties or adjusting to your work environment, your employment may be terminated.

UT Southwestern uses performance evaluations to make decisions concerning continued employment, promotion and merit salary increases, and to help make decisions concerning disciplinary actions. Your performance may be formally evaluated twice during your probationary period. You should receive a performance review before your 180th day of employment. The performance review will be used to help determine your ability to satisfactorily perform your job duties and whether your continued employment is warranted. After this initial period of employment, you will be formally evaluated at least annually.

Regular Employees

If you are appointed to work at least 20 hours per week for a period of at least four and one-half months (excluding students employed in positions that require student status as a condition of employment) you are considered to be a regular employee. As a regular employee, you are eligible for certain employee benefits, including paid vacation, sick leave, holidays, and participation in group insurance plans and retirement programs.

Full-time Regular Employee

If you are appointed to work at least 40 hours per week for a period of at least four and one-half months, you are a full-time regular employee.

Part-time Regular Employee

If you are appointed to work at least 20 hours but less than 40 hours per week for a period of at least four and one-half months, you are a part-time regular employee.

Temporary Employees

Temporary employees are those employees who are appointed for a period of less than four and one-half months. As a temporary employee, you may have been employed through Southwestern Temps , the in-house temporary placement service of UT Southwestern's Office of Human Resources. If you were employed through Southwestern Temps, you should also review and become familiar with the Southwestern Temps Employee Guide.

Full-time Temporary Employee

If you are appointed to work at least 40 hours per week for a period of less than four and one-half months, you are a full-time temporary employee.

Part-time Temporary Employee

If you are appointed to work less than 40 hours per week for a period of less than four and one-half months, you are a part-time temporary employee.

If you were originally appointed as a temporary employee to work at least 20 hours per week for a period of less than four and one-half months, then subsequently appointed (without a break in service) to work at least 20 hours per week for a period greater than four and one-half months, your effective appointment date will be the date of the original appointment and you will be awarded paid vacation and sick leave accruals retroactive to that date. For purposes of this provision, a "break in service" is defined as a calendar month in which you were not employed by
UT Southwestern.

Wages

Your rate of pay was established based upon the complexity of your duties, working conditions, supervision given and received, accountability, education, training, and experience required. Consideration was given to prevailing pay rates being paid for similar kinds of work in relevant labor markets and the availability of funds. New employee salaries are normally set between the base and mid-point of the salary range for the position. A starting salary above the mid-point can be paid only with the authorization of the vice president for human services administration. To be eligible for this consideration, it must be established that you have directly related work experience and/or formal education or training substantially above the minimum requirements of the position; or that the occupation is critical and the availability of trained applicants in the local market is limited.

Merit Pay

UT Southwestern strives to reward employees for outstanding performance through an annual merit pay program when their work performance and productivity is consistently above that normally expected and required. UT Southwestern's ability to award annual merit increases is governed by the availability of funds. To be eligible for a merit increase, you must have been employed by UT Southwestern for at least six continuous months and at least 12 months must have elapsed since your last promotion, demotion, or merit increase and meet the required performance criteria.

Longevity Pay

As a full-time regular employee, and in recognition of your continued service to
UT Southwestern and the State of Texas, you will receive longevity pay in the amount of $20 per month, beginning with the first day of the month after you complete five years of service as an employee of the State of Texas. You will receive an additional $20 per month after the completion of each five year increment of service. Law enforcement personnel who are eligible for hazardous duty pay do not receive longevity pay.

Hazardous Duty Pay

Full-time UT Southwestern commissioned law-enforcement personnel are eligible for hazardous duty pay in accordance with applicable law. Currently, hazardous duty pay is $7 per month for each year of eligible service, up to and including 30 years of service. If you are employed in a position that qualifies you for hazardous duty pay and you transfer to a position that does not entitle you to hazardous duty pay, you will no longer receive hazardous duty pay. You will then be eligible to receive longevity pay based on the total number of years of service as a state employee as provided above.

Overtime Compensation

Departments should establish a schedule of activities and a workload that is organized and staffed so that classified employees are not required to work in excess of 40 hours in a workweek, except when required by operating necessities. It is the practice of UT Southwestern to compensate nonexempt employees for hours worked in excess of 40 hours in a workweek by granting the employee compensatory time. An employee may be paid for additional hours only with the prior approval of the vice president for human services administration.

• Except in emergency situations or when operating necessities require it, nonexempt employees may not work overtime without the prior authorization of their supervisor. If you are a nonexempt employee and you determine that such a situation exists, you should notify your supervisor as soon as possible.
• If you are a nonexempt employee and you are required or permitted to work in excess of 40 hours in a workweek, you will receive additional compensation either in the form of compensatory time off or additional pay at a rate of one and one-half hours for each hour over 40 actually worked (paid leave or holidays taken during a work week are not to be counted as hours worked in determining FLSA overtime hours). Your supervisor will inform you of whether you will receive additional pay or compensatory time.

Equivalent Time

Equivalent time, also known as state compensatory time, should not be confused with the above-mentioned FLSA overtime/compensatory time. Equivalent time is granted or paid on a straight hour for hour basis.

• If you are a nonexempt employee, you will be granted equivalent time if the total number of hours actually worked is 40 hours or less, but due to paid leave and/or paid holidays, your total workweek hours exceeds 40 hours.
• If you are required to work on an official holiday you will be granted another day off as your holiday. This provision applies to both exempt and nonexempt employees.
• At the discretion of the department head, an exempt employee may be granted equivalent time.

Paychecks

As a regular employee, you will be paid on the first workday of each month following your first month of employment. Temporary employees, hourly employees, and certain others are paid on a biweekly basis. Payroll checks generated by the supplemental payroll run are available between the 10th and 15th day of the month. Regular and supplemental paychecks do not include payment for overtime or certain other types of additional compensation. Overtime
checks are issued between the 5th and 20th day of the following month and may be picked up at the Cashier's Office.

Regular Employee

Your paycheck will be delivered to you on payday by your supervisor, or you may elect to have it deposited directly into your bank or credit union account. Funds deposited through "direct deposit" are available to you on payday. To have your paycheck deposited directly to your account, you must complete and send the required form to the Payroll Division of the Office of Accounting.

Temporary Employee

If you are a temporary employee employed through Southwestern Temps, you must go to the Southwestern Temps office on or after your payday to obtain your paycheck. For more information about your pay, consult the Southwestern Temps Employee Guide.

Employee Recognition and Awards Program

UT Southwestern sponsors a program of employee recognition in an effort to help develop among its employees, a spirit of loyalty and a feeling of being a part of the institution. The program involves the presentation of service awards in recognition of each five-year period of continuous service.

Workweek, Workdays, and Work Hours

The UT Southwestern official workweek begins at 12:00 a.m. on Monday and ends at 11:59 p.m. on the following Sunday. Regular business hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. However, due to operating requirements, you may be assigned a work schedule other than 8 a.m. to 5 p.m., and days other than Monday through Friday.

Workplace

During your regularly scheduled workday, you are required to conduct
UT Southwestern business only at your regularly assigned place of business or duty point unless you are on travel status or have received prior written authorization from the president. In no event will your personal residence be deemed to be your regularly assigned place of business or duty point without the prior written authorization of the vice president for human services administration.

Rest Periods

UT Southwestern believes that brief periods of time away from your work area may be beneficial to you and can contribute to your productivity, ability to concentrate and overall job performance. UT Southwestern will make every effort to allow you to take rest periods. Your department will schedule your rest periods based upon the operating needs of the department. You are expected to take rest periods as scheduled (unless prevented from doing so due to operating necessities). Rest periods may not be accumulated or used to shorten your workday or make up time for being late.

Meal Breaks

Meal breaks are usually one hour in duration; however, operating necessities may dictate a different time interval. Your supervisor will determine the time and length of your meal breaks. If you are a nonexempt employee and are required to perform any work duties during your meal break, you are considered to be at work and must be compensated for such time. Therefore, it is important that you be completely relieved of work during your meal break, and that you take your meal break away from your work area. Situations that require you to work during your meal break should occur only on a limited basis and, except in situations requiring immediate action, you should not do so without supervisory approval. You may not work through your meal break to shorten your workday unless approved in advance by your supervisor.

Travel Time

If you are a nonexempt employee and you are required by your supervisor to report to a meeting place to pick up materials, equipment, work instructions, or other employees before traveling to your work site, your travel from the meeting place to your work site will be considered as paid time. However, daily commuting time to and from work (including car-pooling and van-pooling) is not considered paid travel time. In situations requiring out-of-town travel, overnight, or other travel, you should consult with your supervisor to determine if any portions of your travel time will be considered as paid travel time.

On Call

If you are required to carry a pager or to be reachable by phone, you will not be compensated for travel or waiting time if you are free to leave UT Southwestern's premises or your home and can use the waiting time for your own purposes.

If you are required to remain on UT Southwestern premises or are permitted to leave but are restricted from using the time for your own personal purposes, you will be compensated for travel time and time spent waiting on call.

Attending Seminars and Training

Time spent at approved job-related seminars and training may be considered as time worked. You must obtain prior supervisory approval of your participation in the seminar or training session.

Time Reporting

It is important to accurately account for your hours worked so that you can be properly compensated. You are also required to account for any pre-approved overtime hours, holidays taken, or leave taken (including vacation leave, sick leave, compensatory time, non-paid leave or any other leave). As a nonexempt employee, you are required to daily record your actual reporting and leaving time, along with leave taken, on the time record provided by your department. Exempt employees are required to report all leave used during the month on the leave record provided by their department.

By signing your monthly time reports, you certify the accuracy of the information you have provided. Time reports, as are most other UT Southwestern documents, are government records, and falsification of government records can subject you to disciplinary action and possible criminal prosecution.

Changing Your Tax Withholdings

Federal taxes and other permitted withholdings from your pay are determined by the information you provided at the time of your appointment. If you need to change these withholdings, you may do so by contacting the Payroll Division of the Office of Accounting.

Garnishments and Tax Levies

There are two conditions under which your wages may be legally garnished. These conditions are: 1) pursuant to a court order directing that child support payments be withheld from your wages; and 2) pursuant to an Internal Revenue Service tax levy. In either case, the Payroll Division of the Office of Accounting will notify you of its receipt of the garnishment order or tax levy.