Elon University
PAE-11: Sustainable Compensation

Elon University strives to comply with all laws governing compensation and pay practices, including the Fair Labor Standards Act (“FLSA”). FLSA governs compensation in many ways including establishing minimum wage, requiring overtime pay for non-exempt (hourly) employees and establishing pay classifications and accompanying rules on deductions for those classified as exempt (salary) or nonexempt (hourly). Elon University makes every effort to assure that salaries are competitive with those in the community, local industry and peer institutions. Therefore, a minimum annual salary (and maximum annual salary) for each pay grade was established. Elon also collaborated with the contracted food service vendor and campus book store to use the same overall minimum salary so that they would be aligned with the university’s initiative. The pay ranges were determined using local, regional and national surveys. These are reviewed and adjusted periodically. For example, Elon University periodically utilizes the College and University Professional Association for Human Resources’ Annual Salary Survey and the Employment Security Commission’s bi-annual surveys to compare salaries with similar colleges and universities in Elon’s geographic region. Elon also seeks to identify salaries for some common positions at peer institutions to assure that the institution is competitive in the marketplace. Since establishing the pay grades, the university has had a salary pool each year, and Elon’s employees have been awarded annual increases based on the amount of that pool taking into consideration the Consumer Price Index as well as merit considerations. There have been no layoffs at Elon, despite the recent tough economic circumstances. The Human Resources Department of Elon University will be focusing on its current salary administration program during the 2011-12 academic year and conducting an in-depth evaluation. Once evaluations are completed and it is determined if adjustments need to be made, the Director of Human Resources will submit recommendations to the Senior Vice President for Business, Finance and Technology for consideration.