Faculty Handbook

Compensation

Payroll Information

During orientation in Human Resources, new employees are required to complete an employee’s withholding allowance certificate (W-4). Employees must present their social security card to Human Resources when completing the required forms. Additional forms completed may include: the employee’s withholding certificate for city income tax (CW-4 MSU), paycheck direct deposit authorization, and union or association dues card.

Employees may view and make changes to their payroll information related to direct deposit of pay and tax withholdings (federal W-4 and state of Michigan W-4) through the Enterprise Business System portal.

Salaried employees are paid monthly on the last workday of the month. Clerical-technical, labor, and other hourly employees are paid bi-weekly on Friday.

For additional information concerning payroll forms, policies, and procedures, visit the Payroll Office website, call MSU HR at 517-353-4434 or refer to MSU’s Manual of Business Procedures or the applicable Collective Bargaining Agreement.

Overtime

All University employees, except those exempted as executive, administrative, or professional, are covered by overtime provisions of the Federal Fair Labor Standards Act and by the Michigan Wage and Hour Act where it exceeds the Federal Fair Labor Standards Act. Overtime, when assigned, is a requirement of every position in the University. The employer will endeavor to give employees advance notice of overtime assignment when practicable. The administrative head or designated representative must authorize all overtime work prior to the performance of work. Employees may not authorize or certify their own overtime.

Exempt Employees: Employees who are exempt under the definitions of the Federal Fair Labor Standards Act will not normally receive overtime pay (except administrative professionals and supervisory levels 8 through 11).

Nonexempt Employees: Nonexempt employees working in excess of 40 hours in a week shall be given the choice of: compensatory time off at time and one-half or overtime pay at the rate of not less than one and one-half times the regular rate of pay.

This standard varies by collective bargaining unit. For more information, check the applicable Collective Bargaining Agreement or look online for additional information on overtime.

Longevity

To recognize long-term service, Michigan State University has a Longevity Pay Plan that applies to some collective bargaining units and non-represented employees. Payment for longevity purposes is made annually on the first workday of December and is based on the base rate of pay as of September 1 prior to payment, but not to exceed the schedule below. The longevity year is a 12-month period that begins October 1 and ends September 30.

Initial Eligibility: To qualify for the first longevity payment, an employee must have completed six years of continuous half-time or greater service as of October 1 of the longevity year. Periods of inactive service totaling 93 calendar days or more will adjust the longevity date accordingly, and no payment is issued in that longevity year. Military leave, however, will not adjust the longevity date.

Continuing Eligibility: After establishing initial eligibility, employees must be actively employed for 39 weeks (273 calendar days) during the longevity year to receive a longevity payment on December 1.

Longevity Payment Schedule: For each longevity year, the following payment schedule is used:

Years of Continuous Service	Annual Longevity Pay Percent of First $9,500 of Annual Wage*
6 through 9 years	2
10 through 13 years	3
14 through 17 years	4
18 through 21 years	5
22 through 25 years	6
26 or more years	8

* Three-quarter-time employee: percent of first $7,125 of annual wage

* Half-time employee: percent of first $4,750 of annual wage

Other: Eligible employees terminated or retiring during the longevity year will receive a prorated longevity payment. Contact Human Resources at 517-353-4434 to determine if an employee group is included in this program. View  longevity payment information.

Call-In Pay

A nonexempt regular employee returning to work due to receiving a call to return to work after leaving University premises shall receive no fewer than three hours pay or the equivalent in compensatory time. Individuals in an “on-call” or “temporary” status are not eligible for call-in pay. For more information, refer to specific Collective Bargaining Agreements.

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