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Fundamentals of Compensation

employeesThis section of the Manager’s Toolkit will provide you with information about the fundamentals of compensation. This section introduces what a manager needs to know about job classifications and how pay rates are determined. Learn how jobs and pay are evaluated, and why it is important to use these guidelines. Steer clear of legal compliance issues by becoming familiar with Wage guidelines, Hour rules, and the Fair Labor Standards Act (FLSA) requirements. Whether you are an experienced manager or new to the role, you will find resources in this section to help promote your success as a manager/supervisor at Boise State University.


At Boise State we typically hire new classified employees between the minimum and 20% above minimum. There are additional Boise State administrative practices that detail salary treatments for actions such as re-classifications or promotions.

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Payroll and Compensation is not the same thing – these are two separate departments who handle separate responsibilities. Payroll is responsible for producing paychecks including deductions, taxes, and so on. Compensation is responsible for determining the type of position and the salary or hourly rate for each position. Salaries and compensation are determined through extensive market research.

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Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) and applicable state law requires that most employees be paid at least minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.

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