§2.06
Compensation Program

Responsible Manager




Rev. 04/00

  1. General Policy
    1. Relationship with University of California
    2. Relationship with Department of Energy
  2. Human Resources Department
    1. Compensation Office
    2. Staffing Office
  3. Laboratory Committees
    1. Appointment of Members
    2. Function and Role
  4. Divisions
    1. Reviews and Recommendations
    2. Salary Offers
  5. Laboratory Director
    1. Policies
    2. Salaries
    3. Salary Increases
    4. Disputes
  6. Classification and Salary Structure
    1. Classifications
    2. Establishment of Classifications
    3. Determination of Appropriate Classification
    4. Establishment of Salary Ranges and Merit Salary Review Guidelines
    5. Establishment of Employee's Salary Level
  7. Procedures
    1. Routing and Forms for Adjustment Requests
    2. When to Submit Adjustment Requests
    3. Review and Approval of Reclassification and Salary Adjustment Requests
    4. Appeal Procedure

A.  GENERAL POLICY

Lawrence Berkeley National Laboratory's policy is to provide a compensation program to attract, motivate, and retain creative, skilled, and productive employees. The program implements key pay strategies to recognize and reward employees for work performance and accomplishments based on merit and to establish salary ranges and pay rates competitive with external market levels.

A compensation program includes methods and procedures for job analysis, evaluation, classification, and other practices that support management efforts to establish work assignments and appointment levels based on the assessment of job responsibilities, contribution levels, and other requirements. The Laboratory develops salary ranges and pay rates that reflect its internal value of jobs and external labor market values. The program provides for adjustments to salary ranges and pay rates based on the need to remain competitive in response to changing internal and external conditions such as funding levels, labor markets, Laboratory reorganizations, and other factors.

The Laboratory administers the compensation program consistent with its policy of equal opportunity for employees. Management supports open communication with employees about the compensation program and related salary administration practices and procedures.

1.  Relationship with University of California

As part of the University of California, the Laboratory follows University employee policies. In policy matters, close liaison is maintained with the Laboratory Administration Office, University of California Office of the President.

2.  Relationship with Department of Energy

The Laboratory is operated by the Regents of the University of California under the DOE/LBNL Contract with the United States Department of Energy (DOE). In accordance with this contract, the Laboratory has adopted compensation program objectives and standards.

B.  HUMAN RESOURCES DEPARTMENT

1.  Compensation Office

The functions of the Compensation Office of the Human Resources Department include the administering, recommending, implementing, and monitoring of all aspects of compensation policy.

2.  Staffing Office

The Staffing Office of the Human Resources Department, in consultation with compensation staff, is responsible for assisting divisions in evaluating and establishing appropriate job classifications and starting salaries for both prospective and transferring employees and for obtaining all required approvals.

C.  LABORATORY COMMITTEES

Two salary committees cover the major categories of employment at the Laboratory:

Reclassification requests for senior staff and distinguished staff scientists/engineers are normally reviewed by the Laboratory Staff Committee and passed to the Laboratory Director with its recommendation.

1.  Appointment of Members

Members and chairpersons of the salary committees are appointed to serve specified terms. To the extent possible, membership is representative of the various divisions. The committees are advisory to the Human Resources Department and the Laboratory Director. A list of the current membership of each committee is maintained by the Compensation Office.

2.  Function and Role

The committees provide recommendations and important feedback on request by the Laboratory Director or Human Resources Department on compensation-related matters, including proposed changes to policy. In addition, when the division and Human Resources Department disagree, the committees will review and make recommendations on classification issues as requested by the Compensation Manager.

The Scientific/Engineer Salary Committee (a) reviews and makes recommendations to the Laboratory Director on post-October salary changes, head-level appointment positions, and exceptional cases concerning scientist and engineer reclassifications, salary offers, and salary adjustments for senior staff scientist/engineer and division fellow appointments; (b) approves postdoctoral fellow salary schedules; and (c) adjudicates scientist/engineer salary offers on appeal.

D.  DIVISIONS

Division responsibilities regarding administration of Laboratory compensation policies include the following:

1.  Reviews and Recommendations

Reviewing each employee's salary and work assignment at least once a year to ensure that the employee is working in the proper classification and that earnings are appropriate. Recommending reclassifications and salary adjustments when the employee's work assignment or performance has changed substantially enough to warrant reclassification or salary adjustment. Salary increases require approval before they are communicated to an employee.

2.   Salary Offers

Reviewing and approving standard salary offers for new hires. The division may discuss salary requirements with a prospective candidate but may not make a commitment to a salary offer. The only binding offer of employment is made in writing to the prospective candidate by the Human Resources Department. Any preliminary correspondence with a prospective employee should include a clear statement of this policy. Salary offers must be confirmed by the Human Resources Department before any offer is made to the prospective candidate.

E.  LABORATORY DIRECTOR

1.  Policies

Subject to University and/or DOE concurrence when required, the Laboratory Director approves all new policies and changes to current policies on human resources matters.

2.  Salaries

Subject to University and DOE concurrence when required, the Laboratory Director or designee approves salary and classification assignment or changes for employees in certain classifications.

3.  Salary Increases

The Laboratory Director approves the annual Salary Review Guidelines for all classifications before seeking University approval, including revisions to those guidelines after University response.

4.  Disputes

On appeal, the Laboratory Director has final approval concerning disputes on salary and classification matters and on human resources policy interpretation.

F.  CLASSIFICATION AND SALARY STRUCTURE

1.  Classifications

Jobs at the Laboratory are grouped in broad classification groups and additionally into subgroups and individual classification codes. Each of the classification codes, with further subdivision into levels corresponding to the duties and responsibilities assigned and the degree of experience and skill required, has its own Laboratory classification description. Each is analyzed to determine whether it is exempt from the overtime pay provisions of the Fair Labor Standards Act (FLSA).

2.  Establishment of Classifications

The Human Resources Department Compensation Office is responsible for recommending new classifications and changes in existing classifications. University of California approval is required for any changes in the classification system.

3.  Determination of Appropriate Classification

Jobs at the Laboratory are classified on the basis of duties and responsibilities. Both job postings and reclassifications of positions with incumbents are reviewed to determine the proper classification. When job posting rather than reclassification is appropriate, see RPM §2.01(B)(3) (Publicizing Job Vacancies).

  1. Posting. The requesting division and the Human Resources Department will determine the appropriate classification for new positions. Replacement requisitions for established positions should specify the same classification unless the nature of the job has changed or the position does not meet current Laboratory classification specifications. In these cases, the position is reviewed for classification in the same manner as for a new position. If the requesting division and the Human Resources Department cannot agree on a suitable classification, the Human Resources Department may request a review and recommendation from the appropriate salary committee.

  2. Reclassification. When the employee's duties and responsibilities have evolved to the extent that another classification is more appropriate, the employee's position should be reclassified. The division will recommend a new classification to the Human Resources Department. Advancement to a higher classification requires the employee to perform duties equal to those specified in the Laboratory classification description. Reclassifications to a classification with a lower salary range maximum must be approved by the Human Resources Department and discussed with the employee.

4.  Establishment of Salary Ranges and Merit Salary Review Guidelines

  1. Salary Surveys. Salary surveys of public institutions and private firms that have similar positions to those at the Laboratory are used to determine and adjust salary ranges and establish merit salary increase guidelines within available DOE authorization amounts.

  2. Survey Data. The Compensation Office analyzes salary survey data to determine the Laboratory's comparative position and to determine the salary range adjustments and salary increase allocations necessary to adjust the Laboratory's relative position, when required, in the applicable survey labor market. Statistical charts and data are prepared for Laboratory management to substantiate recommended salary adjustment guidelines.

5.  Establishment of Employee's Salary Level

  1. Salary Level. An employee's salary level is based on the individual's skills, training, and applicable experience as evaluated by the requesting division with the concurrence of the Human Resources Department. An employee is paid within the rate range for his or her job classification with the exceptions noted below. A request to have an employee paid above or below the rate range requires written justification and University approval (training classifications are exempted). A new employee may be paid below the rate range if he or she has not met the minimum requirements for the classification, a suitable training classification does not exist, and the employee is in a training period of specified time until he or she qualifies.

  2. Salary Review Guidelines. Salary Review Guidelines are established for each group of classifications for each fiscal year. The salary increase allocations are based on a comparison of the Laboratory to outside survey data and on available authorizations from DOE. Merit salary increases based on performance, corrections for market lag, salary increases granted to correct alignment problems among employees doing similar work, and adjustments based on increases to the bottom of the pay range for the classification are all included within the Salary Review Guidelines. After the guidelines are established, the divisions are informed of the authorizations allocated for salary increases; it is the responsibility of each division to stay within that allocated amount for the fiscal year. The Compensation Office monitors all increases for budgetary appropriateness.

  3. Merit Increase. Merit salary increases are based on the employee's job performance, and every employee is considered for a merit increase once a year. Both recommendations for no increase based on failure to meet established performance standards and recommendations involving merit increases exceeding the range defined in the annual Salary Review Guidelines require written documentation. Decreases in salary must be discussed with the employee and acknowledged by the employee's signature.

  4. Completion of Probationary Period. Satisfactory completion of a probationary period by an employee does not automatically warrant a salary increase. A recommendation for a salary increase may be made, however, if the final probationary performance/progress review justifies the increase, the employee was ineligible for an October increase, and merit guidelines and salary relationships within the department or division warrant the increase. Regular-status career employees transferring from another part of the University of California, who are not subject to a probationary period, may be considered for an increase under this provision if a six-month performance/progress review is completed before the recommendation for salary increase. Additional guidance is provided in the annual Salary Review Guidelines.

G.  PROCEDURES

1.  Routing and Forms for Adjustment Requests

All salary adjustment and reclassification requests originate with the employee's supervisor and are routed through the division director to the Human Resources Department. Two standard Laboratory forms are used for salary adjustment and reclassification requests. Stock Form 7600-64777 (Salary Adjustment Request) is for one employee only and includes space for a written justification for the request. Form LL-2201 (Request for Salary/Wage Actions) provides for listing several employees on the same sheet and does not have any allotted space for written justifications. Required written justifications are furnished by memoranda attached to the form.

2.  When to Submit Adjustment Requests

  1. Annual Reviews. Employees are reviewed annually in time for October-1 changes. Review and eligibility dates for represented employees may vary. Employees hired after April 1 are not eligible for October-1 salary increases.

  2. Special Requests. Salary adjustment requests for regular-status career employees will be considered at times other than the annual review on a limited basis. Such requests will be considered only if strong justification is presented in accordance with the annual Salary Review Guidelines.

3.  Review and Approval of Reclassification and Salary Adjustment Requests

After approval by the division, reclassification and salary adjustment requests are routed to the Human Resources Department for approval. They are reviewed for accuracy and adherence to compensation guidelines and policies. Other required approvals may include the University and/or DOE and are identified in the annual Salary Review Guidelines in addition to the following:

  1. Salary adjustments requiring DOE approval are listed in the Salary Review Guidelines and Appendix A to the DOE/LBNL Contract.

  2. Salary increases for certain classifications must be approved by the Laboratory Director or designee. The approval level is published annually in the Salary Review Guidelines. When a reclassification occurs in conjunction with a salary increase, this also must be approved by the Laboratory Director or designee.

  3. The President and the Regents of the University must approve all salary adjustments for high-level management, scientific, and engineering employees as listed in the Salary Review Guidelines. The Compensation Office provides information on these levels annually.

  4. All reclassifications to senior staff scientist/engineer and distinguished staff scientist/engineer must be approved by the Laboratory Director.

4.  Appeal Procedure

  1. Appeal by Division. A division may appeal a reclassification or salary adjustment decision made by the Human Resources Department. The appeal must be made formally in writing, with a justification specifying the reasons for the appeal. Formal appeals should only be requested if an appropriate resolution cannot be agreed on.

  2. Appeal by Employee. An employee who is dissatisfied with his or her rate of pay or classification should discuss the matter with the immediate supervisor. If the complaint cannot be resolved within the division or department, the supervisor should refer the employee to the Human Resources Department so that appropriate complaint resolution procedures may be initiated.


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