SALARY SCHEDULE:

July 1, 2001 - Higher Education Classified Staff Salary Schedule

Classification and Compensation System

Overview - In 1991, the State College and University Systems of West Virginia commissioned William M. Mercer Inc., now known as Mercer, to assist in developing a classification and compensation system. The objectives of the study were:

• To build compatible classification systems and pay programs that are responsive to the two systems' individual cultures and missions;
  
• To establish classification systems and pay programs that are flexible and simple to understand and manage;
  
• To decentralize the administration of the classification and pay systems so that these systems can be maintained and administered by institution human resources administrators;
  
• To establish pay systems that move employees through pay ranges based on a combination of longevity and merit while addressing market conditions based upon each individual institution's needs and geographic location;
  
• To establish a means to communicate the purpose and progress of the study to members of the Board of Directors and Board of Trustees, institutional presidents, managers, supervisors, and employee interest groups.

Mercer helped to create a system that met the above objectives, but by the time the final system gained passage through the Legislature, the original design had undergone several modifications:

• Mercer created a 15 step salary schedule. The Legislature changed the steps to years of service. This alteration limited the flexibility found in the original design and the system's ability to implement an effective merit system.
  
• The administration of the classification and pay system remained centralized because the Legislature gave responsibility for administering the two systems to the Board of Directors and the Board of Trustees. That responsibility now lies with HEPC and CCTCE.
  
• It is important to note that, although Mercer could provide annually updated market data, it was decided that instead of receiving these updates, comprehensive market studies would be commissioned every three to five years.

The classification and compensation system (commonly called the “Mercer system”), which HEPC and CCTCE still use today, consists of a point factor methodology for determining pay grade (there are 25 pay grades) and a years-of-service step system.

In 1994, the Legislature adopted and established a five-year plan to fund a salary schedule based on market data provided by Mercer. Mercer's market salary study results found no geographic differentials sufficient to justify market differentials for different institutions across the state. Full funding of the 1994 market salary schedule was accomplished on July 1, 2001.

In 1999, the Chancellors requested another market salary study. Once again the issue of market differentials was investigated and once again the study found none. The Legislature did update the schedule based on the new Mercer market study results effective July 1, 2001. The intention, as before, was to move towards full funding over a five-year period. W. Va. Code §18B-9-3 outlines the provisions for the 2001 salary schedule. At the time the new salary schedule was adopted, the Legislature intended to appropriate money to fund the schedule. Unfortunately, West Virginia 's economy entered into a recession, which led to significant decreases in state appropriations for higher education institutions. As a result, the Legislature did not appropriate money to support the 2001 salary schedule. Institutions alone shouldered the burden of finding funding, primarily through tuition and fee increases. Fearful that some institutions would let their obligations to the schedule slide while others worked to find funding, HEPC, in April 2002, mandated that institutions must have all employees at step 0 by July 1, 2005. All but one set of institutions has fulfilled this mandate. Currently, some institutions are at or nearing full-funding of the schedule, while others lag far behind.

HEPC and CCTCE began the compensation system review pursuant to Senate Bill No. 603 (2005) which directed HEPC to “conduct a study relating to issues affecting employees in higher education” over a three-year period (W. Va. Code § 18B-1B-13). The Legislature passed this measure due to complaints from certain institutions for the need for greater operational flexibility. More specifically, they did not want personnel issues under the auspices of HEPC. The Legislature responded by asking the institutions to list what problems they were having with the current personnel rules. Based on this list, the Legislature commissioned a study to determine the best manner to handle these concerns.

On January 11, 2006, West Virginia University Board of Governors filed suit against HEPC arguing that HEPC lacked statutory authority to mandate all classified employees to be paid at or above the zero step on the salary schedule. Kanawha County Circuit Court Judge Charles King issued a summary judgment in favor of HEPC. West Virginia University appealed the decision to the West Virginia Supreme Court of Appeals. In May 2007, the Supreme Court issued a decision stating that West Virginia University does not have to follow the mandates of HEPC to bring all of its employees by July 1, 2005 to at least the minimum salary for their paygrade as set forth in the salary schedule.