Iowa State University

Payroll Manual

Procedures for Terminal Input of Hourly Wages


Wage Hour Reporting



Overtime Compensation



Holiday Pay


    There are eleven holidays – 9 scheduled and 2 unscheduled. The unscheduled holidays are accrued to the employees vacation account. For employees who work between Monday and Friday, holidays occurring on Saturday are scheduled for Friday. Holidays that occur on Sunday are scheduled for Monday. For other employees, the calendar day is the holiday.

    All salaried employees (A,B,C,D,K & P-base) will receive holiday pay if they are in pay status either the day before or the day after the holiday. This requirement may be waived as part of the university’s energy-conservation program. When this occurs, notice will be provided on the univeristy’s website. Terminating employees will not be paid for a holiday occurring after their last day of actual work, unless that holiday was the last day of the month. In that case, the employee would have worked the whole month and therefore would be entitled to a full month’s pay.

    Merit employees (E & H-base), per the Collective Bargaining Agreement, must be in pay status the day before and the day after a holiday in order to receive the holiday pay. Supervisory Merit employees are not covered by the Collective Bargaining Agreement and therefore use the prior paragraph rule.


    Full time employees (40 hours per week):

    When the holiday falls on a regularly scheduled work day and the employee is not required to work the holiday, the holiday pay equals what the employee would regularly earn on that day. Full time employees must receive at least 8 hours of holiday pay even if their scheduled work day would be less than 8 hours.

    1. Employees working four 10 hour days will receive 10 hours of holiday pay if the holiday falls on a regularly scheduled work day.

    2. Employees working three 12 hour days and one 4 hour day will receive 12 hours of holiday pay if the holiday falls on a day scheduled to work 12 hours. If the holiday falls on the day scheduled to work 4 hours, the employee would receive 8 hours of holiday pay. This would give the employee 44 hours in pay status for the week, if a merit employee, 4 hours would be paid as overtime.
    If the holiday falls on a regularly scheduled day off, the employee will earn 8 hours compensation for the holiday. A merit employee has the discretion to take it in cash or compensatory time off. Compensatory time is taken at the request of the employee with the approval of the supervisor. Compensatory time shall be lost if not used within the subsequent 12 month period. The 8 hours of holiday pay is not counted in the calculation of overtime.

    Merit employees required to work on a holiday will receive 8 hours of compensation as holiday pay. The employee has the discretion to take in cash or compensatory time off for 8 hours. Compensatory time is taken at the request of the employee with the approval of the supervisor. Compensatory time shall lapse if not used within the subsequent 12 month period. If the employee chooses compensatory time off, those hours are not included in the calculation of overtime. If the employee chooses to take the holiday pay in cash, the 8 hours are counted in the calculation of overtime.

    1. Employees working four 10 hour days (Tuesday –Friday) will receive 8 hours of holiday pay if the holiday falls on Friday and the employee is required to work. If the employee decides to take holiday premium pay as compensatory time and holiday pay as cash, the employee will be paid for only 38 hours of work and will have to take 2 hours as vacation to maintain 40 hours of pay.
    2. If an employee regularly works four 10 hour days and would normally be required to work on the holiday, but requests to schedule the holiday off, the employee will receive 8 hours of holiday pay and take 2 hours of vacation pay to maintain 40 hours of pay for the week.
    Part time employees (less than 40 hours per week):

    Holidays are prorated according to the employee’s base of employment. A 3/5 time employee who works 8 hours Monday, Wednesday, and Friday will receive 4.8 hours (3/5 of 8) holiday pay for every holiday whether a normal work day or not. In this case, if the holiday fell on a normal work day the employee would have to take 3.2 hours of vacation or make up 3.2 hours work that week in order to have 24 hours in pay status for the week. If the holiday fell on a scheduled day off, the employee could reduce one of the work days that week to 3.2 hours to maintain 24 hours in pay status that week.


Shift Differential


    All merit system employees will be paid a shift differential of $.50 per hour (SD2) for any shift of which four or more hours occurs between 6:00 p.m. and midnight and a shift differential of $.55 per hour (SD3) for any shift of which four or more hours occurs between midnight and 6:00 a.m.

    All merit system employees, (E & H-base) are covered. Student employees hired on an XH base do not receive the shift differential. To receive the shift differential the employee must be scheduled to work at least four hours between 6:00 p.m. and midnight or between midnight and 6:00 a.m. No adjustments in the four hour requirement will be made for employees on fractional appointment.

    Employees who are regularly scheduled to a rotating shift and who work different shifts on a scheduled, regular basis will be paid the shift differential applicable to their scheduled shift. Shift differential is paid for all hours compensated including vacation, sick leave, and holidays. Employees temporarily reassigned to a different shift for one or more days are to receive the shift differential when applicable to the temporary shift assigned.


Standby Pay (On-Call Compensation)


    Standby pay is to be paid all merit system employees at the rate of 10% of the regular budgeted rate for each hour an employee is required to be on a standby status. Employees who are on standby, thereby receiving 10% of their hourly rate for each hour on standby, and are called back to work, do not receive standby pay for the three hours or amount of time worked if more than three hours.

    Since these are non-working hours, these hours will not count as hours compensated for the purpose of computing overtime at time and one half.