Implementing Worker Self-Directed Compensation

So you want to reduce your salary and donate to an aligned org. What's next? Here's how we ask you to do it to minimize administrative burden and stress on all parties:

Timing for reduction

Under our current compensation policies, each year, our "thriving" salaries are increased following the MIT living wage data update (typically between February - May). Once the numbers have been updated, the salary calculator implementation team (currently Tia, Jay, and Erika Sato) will notify you that the annual salary determination process has begun and will share your new calculated salary. From the time you are notified of your new "thriving" salary, you will have 2 weeks to consider whether or not you want to opt to reduce it, and by how much. At the end of the 2 week period, you should notify the salary calculator team of your decision. If you fail to notify the salary calculator team by this deadline, you may be required to wait until the following year to reduce your salary.

Notification Format

When you notify the salary calculator team, please share the yearly salary you wish to retain. For example, send us a Slack message stating "I want my salary for 2023 to be $73,000, and I want to donate the rest of the allocated "thriving" salary."

Implementing New Salaries

After the notification window has closed, the salary calculator team will update everyone's new hourly rate in Gusto and will pay out backdated lump sums representing the difference between your previous salary and your new salary from January 1 - present. If you opted to reduce, that will be reflected in the new rate and lump sum.

Mid-Year Salary Changes

Due to the flexibility of our compensation structure, it's possible that your life circumstance will change and you will want or need to change your salary mid-year. Due to the possibility for such changes, your salary reduction will "accrue" over the course of the year and you will not be permitted to donate any amount before it has accrued.

1. If you experience a life change or just change your mind and want to raise your salary to the "thriving" level, let the financial circle know and we will raise your hourly rate going forward. However, we will not reimburse you for past pay periods.

2. If you experience a life change such that your "thriving" salary is raised, you may accept that new thriving rate or choose any lower one at that time.

3. If you experience a life change such that your "thriving" salary is lowered, your rate of reduction accrual moving forward will be adjusted accordingly.

Donating to an Aligned Org

In November of each year, if you have any accrued reduction for that year (even if it is no longer accruing as you are currently receiving your “thriving” rate), you will be contacted by the salary calculator team to bring forward a proposal for donating to an aligned org.

Your level of responsibility at that time will vary depending on which org you want to donate to:

1. If you want to give the money back to SELC, you can simply respond as much to the salary calculator team and you're all set.

2. If you want to give the money to an organization to which you or someone else has already given salary reduction funds in the past OR one of our current clients, then you don't need to bring a proposal yourself as the salary calculator team will bring it for you with all other proposals. You just need to contact your org to let them know about the donation and email admin@theselc.org with the amount and address to send the check.

3. If you want to give the money to any other organization, then you will need to do at least one of the following before contacting your org to let them know about the donation and emailing admin@theselc.org with the amount, a OrgName, contact name, an email, and address to process payment:

   1. Pass a proposal in a program circle to donate the funds to the organization. In order to pass, the program circle must make a determination that this donation will further SELC's charitable purposes. OR

   2. Attend the financial circle meeting where the group proposal is processed and explain why the org is so clearly aligned that you don't need to bring it to a program circle first.

Failure to Respond

If you fail to respond to the salary calculator team within 2 weeks, then your accrued reduction will be donated back to SELC.

Deviations from this Procedure

If you have a compelling reason to deviate from this process (e.g., your aligned org needs money asap due to an emergency so you wish to pay out the accrued reduction in July and again in December), please reach out to the financial circle via external request and we will do our best to accommodate your request.

Updated: May 31, 2023 - published page