As you know, the University has been exploring and implementing several cost savings measures over the past year as a result of the economic downturn. One that we have examined closely is changing the University’s premium pay policies. After careful analysis, we have determined that significant saving will result if we suspend the use of premium pay. In order to continue to reduce the impact on human capital, the University will suspend the use of premium pay, effective November 2, 2009. 

Premium pay includes double time, double time and a half, and triple time. Examples of premium pay situations include but are not limited to working seven days in the same workweek or during a University closure for inclement weather. When these situations occur in the future, biweekly-paid employees will be compensated at their regular overtime rate, which is one and one-half times the base salary rate.

Two policies are affected and will be updated accordingly. They are 7.1.1 Overtime Pay, and 5.0.4 Work Schedules Affected by a Weather Emergency. Union contracts are either being modified now or will be renegotiated during upcoming contract negotiations.

Regular overtime is described by the Fair Labor Standards Act (FLSA) as one and one-half times the base salary rate for all hours worked in excess of 40 hours in one defined workweek. Princeton policy will continue to exceed FLSA requirements by compensating biweekly-paid employees for overtime at one and one-half times the base salary rate for time worked in excess of eight hours per day and premiums will still apply for work performed during holidays. Additionally, employees will receive one and one-half the base salary rate for any work situation that previously qualified for premium pay.

We will re-examine the suspension as economic conditions improve. 

If you have any questions, please do not hesitate to contact HR at 8-3300 or hr@princeton.edu. Thank you for your cooperation.