Budget

UMKC Mandatory Pay Reduction Q and A

(revised 5-18-2020)

Per guidance and direction from the Chancellor, and in accordance with HR-720 Policy on Salary Reductions for Faculty and Other Academic Appointees and HR-710 Payroll Reduction Measures for Administrative, Service and Support Employees, across the board, mandatory pay reductions for all units at UMKC will be implemented for FY2021. Initial period will be for threemonths and may be renewed for additional periods, but no longer than one year under the current policy.

1. Who is covered under the UMKC Mandatory Pay Reduction?
  • Employees who have an annual salary between $50,000 and $74,999 will have a 5% pay reduction, instead of the 7.5% announced earlier; in addition, no salary reduction will go below $50,000 for this group.
  • Employees who have an annual salary between $75,000 and $99,999 will have a 7.5% pay reduction; however, no reduction will go below $71,250 for this group.
  • Employees who have an annual salary of $100,000 and above will have a 10% pay reduction; however, no reduction will go below $92,500 for this group.

Based on the above criteria, these pay reductions apply to:

  • Faculty and other employees on academic appointments, including tenured and tenure track faculty, NTT faculty, unranked faculty, adjuncts and other employees on non-regular academic appointments;
  • Administrative, Service and Support Employees; and
  • Variable-hour employees.

 2. Could other Payroll Reduction Measures or salary reductions still occur?

Yes. It is important to note that these mandatory pay reductions alone will not achieve the steep cuts that are needed. Plans will vary from unit to unit and most likely include other options that could occur concurrently. This could affect employees who make over $50,000 per year as well as employees who make under that salary level.

3. Will graduate student employees be subject to these mandatory pay reductions?

No. These reductions do not apply to graduate student employees such as graduate teaching assistants or graduate research assistants.

4. Will resident physicians be subject to these mandatory pay reductions?

No. These reductions do not apply to resident physicians.

5. Will the pay reduction apply to grant funded and externally funded employees?

Yes. This mandatory pay reduction applies to all covered employees, including those who are grant and externally funded. 

6. Can an exempt employee’s salary be reduced below the salary threshold for exempt status?

For employees who do not qualify for exempt status on other bases (such as the exemption for teachers), the reduction may not exceed an amount that would alter the employee’s university exempt status (i.e. temporary pay rate may not be less than $913 per week, which is an equivalent of $47,476 full-time annual).

7. Can salaries of employees on H-1B visas be reduced?

There must first be a review to determine whether an amended petition is required before the salary reduction can take effect. Departments should discuss with Human Resources for guidance before proceeding.

8. Can salaries of employees on Optional Practical Training (OPT) be reduced?

Yes.

9. When will the reduction begin for faculty?

Faculty on 9-month contracts paid over 9 months or paid over 12 months will have their pay reduced starting with the September 2020 pay period.

Faculty on 12-month appointments will have their pay reduced starting with the July 2020 pay period.

10. How will these mandatory pay reductions affect 9-month faculty whose 9 month contract starts in September and is paid over 9 months, verses those 9-month faculty who choose to be paid over 12 months?

These reductions, beginning in September, will be based on one-ninth of the annual contract value. Should the reductions be extended for the full year the reductions to those on 9 month contracts will end in May, for both the 9/9 and 9/12 pay options.

11. When will the reduction begin for Administrative, Service and Support Employees?

Administrative, Service and Support Employees will have their pay reduced starting with the July 2020 pay period.

12. How long can the UMKC Mandatory Pay Reduction last?

UMKC Mandatory Pay Reduction will be for a period of three months. The reduction may be renewed for additional periods, but no longer than one year under current policy.

13. What notice will be provided for the UMKC Mandatory Pay Reductions? 

An employee will receive notice before the pay period in which the reduction takes effect.

14. Will the UMKC Mandatory Pay Reductions affect my teaching load?

No. Employees will be expected to work their assigned workload.

15. Will the UMKC Mandatory Pay Reductions affect my FTE?

No. Under the Mandatory Pay Reduction, the FTE will not change.