Exception Pay refers to a method of issuing pay. All employees except biweekly nurses and temporary employees are paid using the Exception Pay method. As long as their appointment is active, Exception Pay employees are paid their standard hours as listed on Job Data whether time is reported and/or approved or not. 

To create Exception Pay the M-Pathways system follows these rules:

1. Issue pay for standard hours, prorated and paid Monday - Friday. 
2. Adjust pay for any time reporting codes processing through payroll either for the current pay period or prior pay periods that add to pay (e.g., OTR, OTP, shift, etc.)
3. Adjust pay for any time reporting codes processing through payroll either for the current pay period or prior pay periods that deduct from pay (e.g., ETW, UET)

Example:

For terminations or leaves of absence effective in the middle of a week, the system will only pay standard hours/5 for each active day. Because of this, time may need to be reported differently to ensure the employee is paid correctly on their final paycheck.

Example:

40 hr./week employee whose final day of work is Wednesday, termination effective Thursday. In a normal week, the employee’s hours would be paid as 8 hours Mon-Fri (40/5=8), but given that their termination is effective on Thursday, only three days will be paid. The system will process 24 hours of their 40 weekly standard hours (8 hrs. Mon-Wed). In the example, the employee worked 26 hours over the course of the week. Therefore, 2 hours of OTR (Over Appointment Regular) are reported to pay the difference between standard hours that will pay automatically and the actual worked hours.

This information, along with additional examples, can be found on the Exception Pay Guide(link is external) on the MMHR website.

The October 2023 Payroll Calendar is now available on the MMHR website.

To receive Outlook payroll calendar reminders, follow these instructions to add the Outlook calendar Michigan Medicine Payroll Cutoffs & Due Dates.