FAQ - Pay

 

 

Question

Answer

What is the compensation of EA represented employees based on?

TVA's compensation philosophy is to provide competitive compensation for similar positions based on the relevant labor market. Compensation, including the pay budget, the performance recognition amount, market rates and comp-ratios will be reviewed annually. TVA and the EA negotiate annually to determine market rates and the pay budget.

 

What is the process for using a custom survey, published data and published salary budgets for negotiations?

Once every three years, a custom survey on salary data only will be used in conjunction with published salary survey data as the basis for determining market rates and the pay budget. TVA and the EA will each appoint two to five members to a team to develop the custom survey with the use of the services of a jointly selected third party, including selection of the companies and jobs to be surveyed. The team will recommend the survey composition to the EA and TVA. The third part will conduct the custom survey and provide results to TVA and the EA. The EA will pay 35 percent of the total cost of the custom salary survey.

In the years when a custom survey is conducted, for each job the pay budget and market rates will be based on an equal combination of the custom and published salary survey data whenever both sources are available. When only custom or only published salary survey data are available for a given job, only that source will be sued as the basis to negotiate the pay budget and market rates. In the years when a custom survey is not conducted, TVA and the EA each may use up to five published salary budget surveys (which can include the ECI) as the basis for determining the pay budget.

 

Are there any guidelines for selecting published data or companies to participate in the custom survey?

The relevant labor market for published data is companies/agencies with similar positions which are electric utilities and/or in the south east.

The relevant labor market for the custom survey includes two parts. For the first part, the parties will target having 80 percent of the companies from within the traditional survey vicinity. The traditional survey vicinity is defined as (1) the watershed of the Tennessee River, (2)the TVA power service area (in which TVA owns, operates, or constructs power facilities), and (3) certain adjacent areas and specified urban centers, all within these boundaries; a line drawn from Birmingham to Atlanta, a line from Atlanta tangent to the eastern boundary of the watershed, the watershed boundary to the northeastern tip of the watershed, a line from the northeastern tip of the watershed to Louisville, the Ohio and Mississippi Rivers from Louisville to Memphis, the boundary of the power service area from Memphis to the southeastern tip of that area, and a line from the southeastern tip of the power service area to Birmingham.

For the second part of the relevant labor market for the custom survey, the parties will target having 20 percent of the companies from outside the traditional survey vicinity. Selection of these companies/agencies is guided by the following: 

  • TVA competitors, including electric generating utilities and independent power producers
  • Companies/agencies having similar work types/occupations, including those TVA competes with for labor
  • Companies/agencies of comparable size to TVA
  • Companies/agencies with union representation
  • Federal government agencies; however, these would not serve as a primary focus
 

What is a market rate and how is the market rate for my position determined?

The market rate is the midpoint of the market range for each position. Individual employee pay rates are between 80-120 percent of the market rate.

Market rates are based on market data. For jobs with no market data, TVA and the EA shall mutually assign market rates for all other positions based on the relative difficulty, responsibility, and qualification requirement of the position relative to its benchmark position.

Adjustments in market rates do not increase or decrease individual employee pay rates.

 

How is the amount of annual adjustment to pay determined?

The amount of annual adjustment is determined through negotiations between TVA and the EA.

 

Who receives overtime and when?

Overtime for Inflexible Schedule Non-Exempt Employees

Employees holding positions determined by TVA to be nonexempt under the Fair Labor Standards Act, are always on the inflexible schedule, and they are paid for overtime at a rate which is one and one-half times their straight-time hourly rate.

Overtime pay for full-time employees on the inflexible schedule is for work outside the basic workweek. It is paid for hours of work in excess of 40 hours in a calendar week. It is also paid for work in excess of eight hours in any 24-hour period when that work is not a part of the 40 hours in the basic workweek.

Absences during scheduled hours in the basic workweek are counted the same as work time in determining eligibility for overtime pay, except toward pay for work in excess of 16 hours.

 

Overtime for Flexible Schedule Exempt Employees

Employees on the flexible schedule get no extra pay for hours worked outside their regularly scheduled hours since compensatory adjustment in their regular work schedule may be made.

Use of compensatory time will be in accordance with TVA guidelines.

Based on business needs or when it is not feasible to use compensatory time within a reasonable period, management may temporarily place a flexible schedule employee on the inflexible schedule. Such placement shall be for periods not less than one workweek.

 

What is the overtime rate for employees on the flexible schedule when temporarily placed on the inflexible schedule in accordance with Supplementary Agreement 3:A-5?

When employees holding positions on the flexible schedule are temporarily placed on the inflexible schedule in accordance with S-3:A-5, and overtime pay is due beyond the 2.5 hours per work week overtime threshold, including when working an established alternative work schedule, it is paid at the straight time (1.0) hourly rate. 

The only exceptions are for work over 40 overtime hours per pay period and when the first scheduled non-work day is worked, work on the second scheduled non-work day. 

These hours are compensated at one and one-half times (1.5) the straight time hourly rate.

 

When do employees on the inflexible schedule (Non-Exempt Employees) receive more than one and one-half the straight time rate for overtime?

  • Work on the second schedule off day if he/she has worked the first off day (twice the straight-time rate)
  • Work outside the basic schedule on holidays (two and one-half time the straight-time rate)
  • Work in excess of 16 hours in any 24 hour period – see rules on page 40-41 of TVA-EA Agreements (twice the straight-time rate)
 

What is threshold time, what is the amount of threshold time and who is required to give it?

Threshold time is the 2.5 hours worked after an employee’s regularly scheduled 40 hour workweek in which the employee receives no compensation. Employees holding positions on the flexible schedule who are temporarily placed on the inflexible schedule in accordance with Supplementary Agreement 3:A-5 are required to give the 2.5 hours prior to being eligible for overtime pay. However, if more than 7.5 overtime hours are worked in a workweek, the overtime threshold will not apply for that workweek, and all overtime worked is compensated at the appropriate rate. The previous rule that employees for Fiscal Year 2009 were not required to give the 2.5 hours of threshold if they worked an off day no longer applies and has been replaced with the rule that if you work more than 7.5 hours in a workweek then the threshold will not apply.

The overtime threshold applies to work as it arises, and is not intended to change the definition of the 40-hour basic workweek or the regularly scheduled hours of established alternative work schedules.

 

Is there a minimum amount of pay I am to receive if called out to work?

Employees called and reporting for work outside of an not continuous with their regularly scheduled hours are paid at the applicable overtime rate, or accorded compensatory time, but no less than four hours’ pay at the straight time rate for employees on the inflexible schedule and no less than four hours compensatory time for employees on the flexible schedule, except when the employees leave work before the completion of an assignment for personal convenience.

 

What is considered a promotion and is my pay increased upon receiving a promotion?

A promotion is considered a move to a position with a higher market rate of at least 8 percent when comparing the market rates between the former position and the new position.

Employees moving to positions with at least an 8 percent higher market rate receive at least a 5 percent and no more than 12 percent increase in basic annual salary rate, not to exceed 120 percent of the market rate for the new position.

 

What is considered a demotion and is my pay decreased upon receiving a demotion?

A demotion is a move to a position with a market rate that is at least 10 percent lower when comparing market rates between the former position and new position. 

Employees moving to positions with lower market rates (for any reason other than returns following temporary promotions) receive between a 0- 5 percent decrease in basic annual salary rate. Management is not required to decrease an employee’s pay if such a move were to occur but they can decrease it up to 5 percent. However, the decrease may be greater than 5 percent if necessary to bring the new rate to 120 percent of the market rate for the new position.

 

What is considered a lateral move and how is my pay impacted?

A lateral move is defined as less than 8 percent higher and less than 10 percent lower when comparing market rates between the former position and the new position.

Employees making lateral moves may receive at TVA's discretion, up to a five percent increase in their basic annual salary rate, not to exceed 120 percent of the market rate for the new position.

 

Can my manager increase my base pay at any time?

TVA may increase an employee’s basic annual salary rate at any time on the basis of his/her performance, provided the resulting pay does not exceed top of the range for the position. TVA, at its discretion, may also offer a lump-sum payment or base-pay increase incentives to employee for the purpose of knowledge and skill retention, relocation or for the completion of special projects in accordance with TVA policies and procedures.
 

 

If TVA has approved me getting a college degree, do I receive any compensation upon completing the degree?

Full-time employees completing an associate, bachelor's, master's, or doctorate degree will receive an incentive, provided the quality of the employee's work is satisfactory and further provided that advance management approval of the educational program is granted.  Eligible employees will receive a lump-sum payment of $2500, subject to the terms of the applicable service agreement as provided in TVA's Tuition Reimbursement program.