Yes. The rates are marginal and applied by bracket. The first $50,000 is excluded.
September 1, 2020. For OSU’s senior executives (including the president, provost, vice presidents, general counsel, deans, vice provosts, and others) the reduction program was implemented July 1 and is anticipated to be in effect for a minimum of six months.
The reduction is effective September 1st for 12-month faculty and September 15th for 9-month faculty. If the employee is exempt from the salary reduction for any of the reasons noted the reduction would not apply. For grants, if the pay is 100% from external grants in May 2020 and is in a fixed-term position it would be excluded. If it is split across funds the reduction would apply.
The temporary pay reduction for OSU’s senior executives will be in effect for a minimum of six months. For other employees, the reduction will be terminated if the financial situation improves sufficiently that it is no longer needed (the gap between revenues and expenses is less than $35M).
No, the rates are marginal. So, in the example only the $40 over $50,000 would be reduced and the ending salary would be $50,037.
The temporary reduction applies to the annual salary rate. Annual Salary Rate is defined as the salary equivalent of this job at full time (100% appointment)1. So, the 0.8 FTE employee at a salary rate of $60K would be included. The salary rate would change to $59,140 and the pay at 0.8 FTE would be $47,312.
1 https://hr.oregonstate.edu/employees/administrators-supervisors/classifi...
The program exempts employees 100% on grant funds as of May 2020. In this case, since the employee is not paid 100% on grant funds the employee is eligible for the salary reduction.
No, the decision was made to use salary reductions as a temporary measure to address the financial challenges but maintain services to students for the limited duration of the pandemic.
No, not in lieu of the salary reduction. In some self-support units there is language in non-renewal letters that allow for FTE reductions if the financial circumstances of the unit worsen significantly.
No, employees will still have access to the same services.
No. There is a Letter of Agreement between OSU and SEIU – Alternatives to Layoffs for Oregon State University:
https://hr.oregonstate.edu/sites/hr.oregonstate.edu/files/seiu_osu_loa_l...
Human Resources is confirming this. In the current process, the vacation payout would be calculated utilizing the rate at the time of the vacation payout which in this example would be at the reduced salary rate.
The Collective Bargaining Agreement (CBA) dictates that 100% grant-funded individuals are exempt from the salary reduction. However, this creates conflict with federal regulations related to grant funds. In particular, federal regulations necessitate that salary compensation for individuals needs to be consistent across funding sources, federal or otherwise. Hence, the institution cannot reduce the pay rate of an individual paid on institutional funds but keep the pay rate of an equivalent individual who is paid by grant funds unchanged. Given the need to comply with both the CBA and the federal regulations, the institution will only charge the federal government the reduced pay rates but make institutional resources available to assure that 100% grant-funded fixed-term employees do not experience a pay reduction.