Office of the Chancellor
Telephone: 301.445.1901
Facsimile: 301.445.1931
3300 Metzerott Road
Adelphi, MD 20783-1690

I am pleased to present Phase II-Exempt of the USM Pay Program approved by the Board of Regents on December 3, 1999 for implementation in January 2000.

This program consolidates four categories of employees (Associate Staff, Classified-Exempt, Unclassified Staff and Academic Administrators) into one group of employees, which will now be referred to as Exempt Staff. Additionally, the program offers an opportunity for the USM to better retain, recruit and reward valued employees in today's competitive marketplace.

In order to address best business practices, the development of this program included the research of information from our market competitors. The unique needs of our various institutions required the creation of policies which establish consistent USM principles, yet recognize the importance of flexibility at each of the institutions. These policies are designed to be fair and competitive for all Exempt Staff. The policies may be viewed on the Web at: www.usmd.edu/ppex.

In order to achieve success for the USM, a high level of due diligence was required of employees and management in areas such as job definition, policy formulation, and overall program strategy. Highlights of the policies, based on the contributors' input are as follows:

• Pay Administration - Provides flexibility for the institutions to establish salaries based on consistent USM principles with consideration of their individual markets and institutional resources.

• Work Schedule - Provides flexibility in scheduling and timekeeping.

• Annual Leave - Enhanced earnings for annual leave. Beginning with an employee's 21^st year, annual leave will be increased from 22 to 25 days per year.

• Reassignment - Provides notice provisions for employees who are transferred.

• Separation -Provides a period of notice based on an employee's years of service.

• Reinstatement - Increases duration of reinstatement from two to three years.

• Layoff - Increases the USM's period of notice to the employee from 30 to 90 days.
• Implementation - Provides vesting rights for certain policies.

The Exempt Pay Program policies take effect in January 2000. In the upcoming weeks you will be receiving information on your institution's Pay Administration procedures (no later than February 27, 2000) and guidelines on implementation of the remainde r of the policies (no later than June 30, 2000).

I want to personally thank the many employees involved in molding this program and making this vision a reality. Special acknowledgements are extended to the Systemwide Human Resources Committee (SHRC), the Exempt Task Force, and the Council of Univer sity System Staff (CUSS) who played critical roles to reach this point.

We have achieved a milestone in Pay Administration in the USM. However, there remains much work to be done to maintain this program as a competitive tool. We look forward to your continuing input in what is a high maintenance but rewarding process.

If you would like more information or have any questions, please contact your Institution's Human Resources/Personnel Office.