As part of efforts to mitigate deepening financial challenges, there will be no salary increases during fiscal year 2020-2021 for University employees making more than $50,000 per year.
A one-time payment of $1,000 in July 2020 will be provided to benefits eligible faculty and staff who make an annualized base salary of $50,000 or less ($4,166.67/month or less for exempt staff or $24.04/hour or less for non-exempt staff). The payment will be prorated for eligible staff working at least 20 hours per week but less than full time.
Managers and supervisors should continue to conduct performance reviews and discussions with staff. This is an important process to provide feedback on strengths, opportunities for improvement and professional development goals for the coming year.
Managers should also meet with their staff to explain the process this year prior to the payment dates listed below. The following points are of particular importance:
- The one-time payment is not automatic or guaranteed. A performance rating for staff of “successful” or “exceptional” is a prerequisite for eligibility.
- The $1,000 lump sum payment is subject to all applicable taxes and will be taxed as a supplemental payment as required by the IRS (22% federal, 5.35% state, 7.65% FICA).
- Payments for eligible faculty and staff will be included in the July 17 biweekly pay date for hourly-paid employees. Salaried employees will receive the payment on the July 24 monthly pay date.
Questions and Answers
1. Who is eligible for the $1,000 one-time lump sum payment?
- The lump sum payment applies to all staff and faculty in regular (not temporary) positions in the University who make an annualized base salary of $50,000 ($4,166.67/month for exempt staff or $24.04/hour for non-exempt staff) or less and who are scheduled to work 20 hours or more per week (benefits eligible). Amounts for eligible staff scheduled to work fewer than 40 hours per week (1.0 FTE) will be prorated.
- Individuals must be hired before January 1, 2020 to be eligible.
- Staff must have a performance evaluation of "Successful" or "Exceptional." Individuals with a "Needs Improvement" rating or who are in a performance improvement plan are not eligible.
- Post-doctoral associates and research related positions (Job Family 27) are included in this program.
- Employees represented by collective bargaining units are not eligible for the lump sum payment and should refer to their respective bargaining unit agreement for guidelines on any negotiated increase.
- The lump sum payment will not change base annual salaries for eligible University employees.
2. When will the payment be made?
The lump sum payment will be made in July 2020 as part of the current pay cycles and performance management cycle for the University and School of Medicine. Payments for eligible faculty and staff will be included in the July 17 biweekly pay date for hourly-paid employees. Salaried employees will receive the payment on the July 24 monthly pay date.
3. Why was $50,000 chosen as the salary cap for those receiving a lump sum payment?
Due to the economic impact of the COVID-19 pandemic, the University has limited resources to invest in salary increases for faculty and staff. The $50,000 threshold was established because it allowed the University to provide a meaningful financial reward of $1,000 to a portion of our staff. A larger amount would have further limited the number of people who could have received it, and a higher salary threshold would have reduced the amount of the payment.
4. Will performance evaluations still be done this year?
Yes, the performance evaluation is an important part of professional and career development and is essential for setting goals for the coming year. Additionally, the lump sum payment is tied to a performance rating of "Successful" or "Exceptional." Anyone rated as "Needs Improvement" or who is in a performance improvement plan is not eligible for the lump sum payment.
5. I was hired after January 1, 2020. Will I receive a lump sum payment?
No, staff and faculty with limited University service (hired on or after January 1, 2020) will not be eligible for a lump sum payment this July.
6. Does the $50,000 threshold include shift differential or overtime?
No, the $50,000 threshold is based on an individual's annualized base salary without any premium pay, including shift differential and overtime.
7. If I am eligible to receive the lump sum payment, will it be subject to deductions?
Yes, the payment is subject to all applicable state, federal and FICA taxes.
8. If I am scheduled to work less than full time, will I be eligible for the lump sum payment?
It depends. You must be benefits eligible, which means that your regular work schedule is at least 20 hours/week. Second, your hourly rate cannot exceed $24.04/hr. Salaried (monthly paid) staff cannot exceed $4,166.67/month.
9. Does the lump sum payment apply to staff in the School of Medicine and School of Nursing?
Yes, the lump sum payment applies to all units in the University (including the School of Medicine and School of Nursing).
10. Does this lump sum payment apply to staff in Duke University Health System (DUHS) as well?
No. Duke University Health System (DUHS) determines compensation issues on a different calendar from the University, and guidance will be provided to DUHS employees at a later date.
11. Will there be any changes to the pay ranges (minimums and maximums) for next year?
Based on updated market survey and economic forecasts, it will not be necessary to adjust pay ranges for next year.
12. Will the senior officers of the University receive a pay increase this year?