Contracts: New Positions and Classification

Before posting or filling any professional or administrative position, contact the HRS Compensation Office to discuss the role. HRS will review the duties and responsibilities of the position and work with you to determine whether it qualifies for an MUS employment contract, a Letter of Appointment, or whether it should be classified as a staff position under the MUS Compensation Plan. This is a critical first step and starting without HRS guidance can result in misclassification and significant delays.

Working with HRS, confirm that the position meets the eligibility requirements for an MUS employment contract. Eligible positions are professional and administrative roles that involve autonomous work or policy-making authority. Eligibility is not determined by job title alone. The relevant factors are job duties and responsibilities, decision-making authority, and the essential business needs of the employer. 

To be eligible, a position must also be exempt from state and federal overtime regulations. However, not all overtime-exempt positions are appropriate for MUS employment contracts. 

The following are not eligible for MUS employment contracts: 

• Student employees 

• Classified employees 

• Employees covered by a collective bargaining agreement 

• Employees covered by a Board of Regents employment contract (Policy 711.2) 

Working with HRS, determine which contract type applies to the position. There are two contract types under BOR Policy 711.1: 

MUS Employment Contract: Used for ongoing professional and administrative positions. The maximum term is one year. Initial contracts for new Vice Presidents, Provosts, Vice Chancellors, or two-year college Deans may be for up to two years. Employees on MUS contracts must receive written notice of non-renewal within the following timeframes: 

• First year of employment: at least 30 days before contract expiration 

• Second year of employment: at least 3 months before contract expiration 

• Third or subsequent years: at least 5 months before contract expiration 

Letter of Appointment (LOA): Used when an appointment is temporary or funded through means not available from year to year. The appointment is for the fixed term specified in the letter, not to exceed one year. Employment ends automatically at the end of the term without notice, except in cases of cause or lack of funding. Employees hired through an LOA have no right to continuous employment beyond the fixed term. 

Both contract types may include a notation making employment contingent upon continuation of funding. If anticipated funding is not forthcoming, the employee may be terminated upon 15 working days written notice. 

Salaries are administered in accordance with the BOR Salary Guidelines for Non-Faculty Contract Employees. HRS will advise on the appropriate entry pay based on the position, relevant salary market data, and existing salary relationships on campus and within the MUS. The goal is to balance recruiting a high-quality workforce with the reality of available salary resources. 

If you believe a higher entry rate is warranted, discuss this with HRS before extending any offer. Salary adjustments of greater than 20% without a corresponding increase in duties and responsibilities require Board of Regents approval. HRS will advise on the appropriate approval pathway. 

Once the position type, contract type, and entry pay are confirmed, HRS will prepare the contract documentation and coordinate submission to the Commissioner of Higher Education for approval. Do not extend an offer or make any commitment to a candidate until HRS has confirmed Commissioner approval. 

Letters of Appointment do not require prior Commissioner approval but must be reported to the Commissioner annually by October 1. HRS will advise on the process for LOAs. 

The key factors are whether the role involves autonomous work or policy-making authority and whether it is exempt from overtime regulations. Job title alone does not determine eligibility. Contact the HRS Compensation Office before posting or filling the position to confirm the appropriate employment type.

An MUS contract is used for ongoing positions and carries non-renewal notice requirements. A Letter of Appointment is used for temporary or contingently funded positions and ends automatically at the fixed term without notice. Both have a maximum term of one year. HRS will help determine which is appropriate for your situation.

Yes. Both MUS contracts and Letters of Appointment may include a notation making employment contingent upon continuation of funding. If anticipated funding is not forthcoming, the employee may be terminated upon 15 working days written notice regardless of where they are in their contract term. Contact HRS if you are considering this notation so it is correctly documented in the contract.

Contact the HRS Compensation Office to discuss your situation.