Frequently Asked Questions

Non-Exempt Salaried Transition Program

What is happening?

Non-exempt employees on the salaried, semimonthly payroll will transition to the hourly, biweekly, payroll on September 21, 2019.

Why is the University making this change?

To better meet regulatory requirements and to align the University with its peers. The current method for reporting overtime and absences – on an exception basis via a paper form – is inefficient, inconsistent, and error prone. While researching how to improve the current reporting process, a benchmarking exercise conducted with peer schools determined that Notre Dame is one of the few private top tier schools continuing to offer a salaried payroll for non-exempt employees.

Who is impacted?

The approximately 375 (after Early Retirement elections) non-exempt employees on the salaried payroll and their supervisors.

What is meant by a “non-exempt” position?

Positions are classified as either exempt or non-exempt based upon the type of work performed and the salary amounts paid. The University must apply the standards set forth in the Fair Labor Standards Act (FLSA) to classify every position as exempt or non-exempt.

Employees in non-exempt positions are eligible for overtime and must record and track all hours worked. Any time worked in excess of 40 hours in a workweek must be paid at a premium overtime rate.

Exempt positions do not require the recording and tracking of hours worked as they are “exempt” from overtime under the FLSA regulations.

Is this change a demotion of certain non-exempt positions?

Not at all. This changes only the pay frequency and the method of tracking hours. In other words, it changes how employees are paid, not how much they are paid. There is no change in position, title or responsibilities. Annual base pay and benefits remain the same.

How will this impact employees?

Impacted employees will report their time in the UltraTime system – via clock or computer – rather than via a paper form. All time worked – regular hours and overtime – and absences must be reported. This will require action by the employee and the supervisor each pay period for the employee to be paid accurately.

What is the difference between the salaried payroll and the hourly payroll?

The salaried payroll is paid twice a month – 24 times per year – on a current basis (the end of the pay period and the pay date are the same day). The hourly payroll is paid every other Friday – 26 times per year – on a one week deferred basis (the pay date is one week later than the end of the pay period).

How will this affect my pay?

You will receive 26 pays per year rather than 24. Because your annual wage amount is not impacted, this means slightly less pay each pay date. You will receive two pays per month for 10 months a year. And two months a year, you will receive 3 pays.

How will this impact my insurance benefit deductions?

Insurance deductions for staff are processed twice per month (24 times per year). On the two months per year when there are three payrolls, there will be no insurance benefit deductions.

How will this affect vacation accruals?

The annual vacation earned will not change. Vacation earned each pay period will change slightly – because the annual amount earned is divided by 26 rather than 24.  For example, if you are eligible for 2 weeks (80 hours) of vacation pay, you will earn 3.08 hours per pay rather than 3.33 on the semi-monthly pay.

Will any other deduction amounts be impacted?

If you have any elections in flat dollar amounts - for example, the 403B, tax withholdings, Untied Way, Development, etc - you may want to adjust the amount as it will be deducted from your pay 26 times per year rather than 24 resulting in a larger annual amount.

When and how will the impacted individuals be notified?

Initial campus announcements occurred in mid-April via e-mail. Additional communications will be sent periodically as more information becomes available and the transition date approaches.

How will supervisors/departments know that they have employees who will be impacted?

Managers and Supervisors were notified via campus e-mail in mid-April, along with impacted employees.

Must departments wait until the specified transition date or can they elect to move their impacted staff earlier?

A number of departments across campus have already moved their non-exempt employees to the hourly payroll. Others have asked if they could convert their groups early rather than wait until September.

Human Resources and Payroll may be able to accommodate early transition requests starting in July. Please contact Leigh Anne Roberts, Payroll Manager, if your group is interested in converting early.

I’ve never used UltraTime before. Will training be available?

Yes, a new training program will be available as the transition date approaches. There will also be short training videos and quick reference guides available on the Payroll Services website which should be sufficient for most employees and supervisors. Human Resources & Payroll will have dedicated resources available to support this transition.

Will I need to record my hours every day?

All time worked – regular hours and overtime – and absences must be reported. This will require action by the employee and the supervisor each pay period for the employee to be paid accurately. Best practice is to enter your hours daily, but your supervisor/department will determine what works best for your area.

Does my supervisor have to approve my hours every day?

Supervisors must approve hours for the employee to be paid. Best practice is to review and approve daily. Payrolls are run the Monday after the pay period ends. A reminder e-mail will be sent to supervisors about any unconfirmed/unapproved hours for their employee.

Does this affect work schedules?

When and where an employee works is a decision made by each department/supervisor and will not need to be adjusted as a result of this change.

Must impacted employees report hours on a time clock?

No, the UltraTime system has two methods for tracking hours. Using an ID card at a time clock to record actual in and out times is just one method. Those electing to enter hours via the UltraTime web-based application have the flexibility of entering total hours worked within the two-week period for supervisor approval. Payroll will collaborate with departments on which time recording method works best for their specific situation.

Will employees be paid if they forget to record hours?

The employee and their supervisor are to ensure hours are entered accurately and approved. Pay is based on hours entered in UltraTime. A reminder e-mail will be sent to supervisors about any unconfirmed/unapproved hours for their employee(s).

What if my supervisor isn't available to approve my time?

Backup approvers will be assigned in case the normal supervisor is not available to approve hours for a time period. Payroll Services personnel take many steps to ensure all employees are paid on pay day and there are processes in place to address situations such as these.

How does Christmas holiday pay work on hourly payroll? Will I receive my normal pay for month of December?

Yes, employees eligible for holiday pay will be paid Christmas holiday pay in advance with the intent that they receive the full amount of their normal bi-weekly pay before departing campus on December 20. Thus, the pay that would normally occur on Friday, December 27 on the bi-weekly cycle will be advanced by one week and paid on Friday, December 20. Then the first pay in January will occur on January 10 to restore the payments to the original bi-weekly schedule. there will be considerable communications from Payroll Services regarding the process of entering time into UltraTime so employee receive their holiday pay on December 20.

Why is an advance being offered to employees at the time of the transition?

When one moves to a payroll that is paid on a one week deferral payroll that is currently paid, the employee will experience a cash shortfall due to timing. The advance is being offered to cover that timing issue which will be experienced on September 30. Employees will be contacted about the advance opportunity and the repayment options available thru payroll deduction.

Will there be additional communications forthcoming?

In May, Payroll and Human Resources held numerous information sessions for impacted employees and supervisors. Additional details will be communicated about training opportunities as the September transition date approaches.

What if I still need more assistance?

Dedicated resources are available to support the transition. More information will be forthcoming as the transition date approaches.