An equity adjustment is a management-initiated request to adjust an employee's base pay to address pay concerns.
Pursuant to applicable policy or collective bargaining agreement, equity increases may be requested to address situations such as:
- Significant additional responsibilities not resulting in reclassification
- Less experienced new hire salary exceeds current employee
- Difficulty retaining staff due to specialized skills or high market demand with bona fide external job offer
- Salary compression between supervisors and their employees
- Salary inequity between employees with comparable job responsibilities
The Annual Compensation Review Program may be conducted annually for non-represented employees, and equity requests may be submitted through Job Builder to address immediate pay equity concerns that cannot wait for an Annual Compensation Review Program or fall outside the scope of an annual review process.
Guidelines
Equity adjustments are not intended to reward performance, recognize longevity, or address changes in job scope. These matters are addressed through a merit process or classification review.
Equity Request Process
Managers and authorized Job Builder users may submit an equity request through Job Builder.
Requests should include:
- A summary of the reason for the request (e.g. retention, compression, inequity)
- The incumbent’s employment and salary history within the department
- Employment and salary history of other employees in the same classification, as applicable
- The specific dollar amount, percentage or step increase requested
- Relevant market or recruitment information, when applicable, such as:
- Consistently requested salaries above the posted range
- Failed or extended recruitments due to compensation concerns
- Ongoing difficulty attracting qualified candidates at or near the midpoint of the range
Union-Represented Staff
California’s Higher Education Employer-Employee Relations Act (HEERA) is the law that gives University of California employees the right to decide whether to unionize and to have collective bargaining serve as the sole means of determining wages, hours, and terms and conditions of employment.
Only some collective bargaining agreements specifically address equity adjustments. As a result, equity requests for represented staff must be reviewed carefully to avoid conflict with the bargaining process and potential systemwide implications.
Union notice is required when equity adjustments are proposed for represented employees, prior to approval and implementation.
Frequently Asked Questions:
- What is the difference between an equity adjustment and a reclassification?
- An equity adjustment addresses pay concerns for an employee whose job scope and classification have not significantly changed.
A reclassification is appropriate when there has been a significant and sustained change in job duties or level of responsibility that may warrant a different classification and salary range. - Can an equity adjustment be used to recognize performance or longevity?
- No. Equity adjustments are not intended to reward performance, recognize length of service, or address significant changes in job scope. Performance‑based increases are addressed through a merit process, and changes in duties should be reviewed through the classification review process.
- Who can submit an equity request?
- Equity requests should be submitted by managers or other authorized Job Builder users through Job Builder.
- When should an equity request be submitted outside of an Annual Compensation Review Program?
- Equity adjustment requests submitted outside the annual review process are intended to address immediate and documented equity issues, such as salary compression, inversion, or pay misalignment resulting from hiring or market‑based actions.
- What factors are considered when reviewing an equity request?
- Requests are evaluated using objective criteria, pursuant to applicable policy or collective bargaining agreement. This may include internal equity among comparable positions, salary range or step structure placement, market considerations, and evidence of salary compression or inversion. All requests must include clear and well‑supported business justification.
- How are equity adjustments handled for represented employees?
- Equity adjustment requests for represented employees must be reviewed to ensure compliance with the applicable collective bargaining agreement. Union notice and additional review may be required prior to approval.
- Are equity adjustments part of the annual merit program?
- No. Equity adjustments are separate and distinct from the merit program and should not be used to supplement or replace this process.