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District to move hourly employees from annualized pay to hourly pay; bridge loan and individualized planning offered
Summary
The board received a report on changing hourly (nonexempt) staff pay from annualized payments to pay for actual hours worked. Administration said the change affects roughly 330–340 employees, will take effect July 1, 2025, and the district will offer a one‑time bridge loan and financial counseling to ease transition.
District administrators told the board the district will change how it pays nonexempt support staff, moving from annualized pay to payroll that reflects actual hours worked and each pay period. The board received the report Jan. 27; implementation is planned for July 1, 2025.
Human resources and payroll staff explained the rationale: federal Fair Labor Standards Act rules require nonexempt employees be paid for hours worked and overtime; many peer districts in Dane County already pay hourly. Barb Buffington (personnel) and Aaron (payroll lead) said the transition will improve pay‑stub transparency and reduce reconciliation challenges when employees leave midyear.
Aaron said the change affects roughly 330–340 staff members in groups such as paraeducators, custodial/maintenance, mechanics and professional support staff; transportation and food service groups (about 80 employees) already receive hourly pay. Barb noted administrators also award general leave up front under current practice, which can complicate final pay calculations for employees who leave midyear.
To reduce financial hardship, the district will implement an interest‑free, one‑time income bridge loan through UW Credit Union, provide virtual financial‑wellness sessions and offer individualized one‑on‑one counseling to estimate paychecks under the new system. Payroll calendars, FAQs and paycheck estimators will be shared with affected employees; staff communications and individualized notices will be distributed this week, administrators said.
Board members asked about staff reaction and turnover risk. Administrators said they had received both negative and positive feedback, and that other districts that completed similar transitions did not report large departures. Trustees asked for ongoing tracking and early outreach to supervisors to ensure timely time‑sheet submission and approve processes; administrators said training and process changes for supervisors and payroll staff are already underway.
The board did not take a vote; administrators said they plan to begin implementation steps and individualized outreach immediately for the July 1, 2025 change.
