6.06—Additional Compensation

Effective: 10/03/2011
Senate Proposal: No
Responsible University Officer: Vice President for Administration
Responsible Office: Human Resources

Policy Statement

Eligible employees have the opportunity to earn additional compensation in excess of their institutional base salary (IBS) under certain circumstances.

Policy Requirements

All additional compensation requests:

• are permitted only if relief from regular duties is not feasible,
• must be processed before the additional duties are performed,
• require written explanation of the additional duties, and
• require at least two signatures (approval is required at least through Vice President).

After-the-fact requests will not be processed/permitted/allowed from a sponsored index.

In unusual cases and only with prior approval of the sponsor and the University, eligible employees may earn additional compensation for intra-university consulting.

Compensation requests for intra-university consulting which are funded from a sponsored index will be routed to the Sponsored Programs Office to obtain sponsor approval. No other additional compensation requests are allowed on a sponsored index.

Reason for Policy

This policy is to ensure the University's compliance with federal regulations. The federal regulations state: "Incidental work (that is in excess of normal work for the individual), for which supplemental compensation is paid by an institution under institutional policy, need not be included in the payroll distribution systems described below, provided such work and compensation are separately identified and documented in the financial management system of the institution."

Related Policy Information

Regular employee performance should not be affected by the additional duties. If the additional duties do affect regular employee performance, the agreement can be canceled.

Employees may earn additional compensation by providing consulting services for another department on campus (intra-university consulting). The federal regulations state: Since intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full-time base salary, the principle also applies to faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member of the same institution. In unusual cases where consulting is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his/her regular departmental load, any charges for such work representing additional compensation above the institutional base salary are allowable provided that such consulting arrangements are specifically provided for in the agreement or provided in writing by the sponsoring agency.

Intra-university consulting is limited to one (1) day per week per the University consulting policy found in the Board of Trustees Conflict of Interest policy 4.7 (also referenced in Board of Trustees 15.3 and Faculty Handbook 3.2.3, 5.1.1 and Appendix B).

Exclusions

An employee providing consulting services within their primary department is ineligible for additional compensation per federal regulations.

An employee who is an investigator on a sponsored project cannot be compensated for intra-university consulting on that project per federal regulations.

Non-exempt employees are ineligible for additional compensation.

Contacts

Definitions

Additional Compensation - Salary paid by the University in excess of the institutional base salary and is one of the following:

• Supplemental Compensation - salary paid for additional duties NOT directly related to the employee's normal appointment (for example: additional job),
• Non-Recurring Compensation - salary paid for additional duties directly related to the employee’s normal appointment, under certain circumstances, and is for a short duration (for example: full-time faculty teaching an additional section of a course mid-semester or full-time staff working to bring up major software in their department), or
• Intra-University Consulting Compensation - salary paid for intra-university consulting that is generally budgeted on a sponsored index and approved by the sponsor.

Bonus - Additional compensation given to an employee above what is expected and is not part of their base salary.

Eligible Employee - Regular full-time faculty and full-time exempt staff (which includes coaches).

Hiring Department - The department hiring the employee for additional duties, which in some cases may also be the employee's primary department if the duties are being performed in the primary department.

Institutional Base Salary (IBS) - Annual compensation paid by the University for an employee's appointment, whether that individual's time is spent on research, instruction, administration or service. IBS does not include additional, bonus, or faculty summer compensation. IBS also excludes any income that an individual is permitted to earn outside of duties for the University.

Intra-University Consulting - Consulting which occurs between two separate and distinct departments within the University. For purposes of this policy, research centers which are functioning units within a school or college are not separate and distinct departments.

Primary Department - Employee's home department.

Short Duration - Typically less than six months for staff; one semester for faculty.

Responsibilities

Department Chair or Director - Reviews the request and signs the Employee Status Change form indicating approval.

Eligible Employee - Reports effort in a timely and appropriate manner on the effort certification form, certifies effort when already compensated from external funding source(s), and ensures primary department supervisor is aware of second department hiring (if applicable).

Hiring Department (in some cases the hiring department may also be the primary department) - Completes the Employee Status Change form, ensures appropriate approvals on the request form, and ensures written justification is included with the form.

Human Resources - Receives the completed form and reviews for accuracy and appropriate signatures, obtains provost/vice president signatures as applicable, and processes request for payment. Routes intra-university consulting requests funded from a sponsored index to the Sponsored Programs Office for review.

Sponsored Programs Office (SPO) - Reviews intra-university consulting requests for allowability and when necessary, submits intra-university consulting requests to the external funding source for approval.

Supervisor of Eligible Employee - Prior to the eligible employee performing additional duties and requesting for compensation for the duties:

• reviews and determines whether or not employee's regular duties can be adjusted to avoid the additional work situation, if not,
• evaluates possible bonus compensation in lieu of additional compensation because of increased departmental load and/or responsibilities, if not, then
• provides written justification for the additional compensation.

Procedures

In support of this policy, the following procedures are included:

• 6.06.1 Additional Compensation Request

Forms and Instructions

In support of this policy, the following forms/instructions are included:

Forms

• Employee Status Change Form

Appendices

• Faculty Handbook
• Account Code Listings Report
• OMB Circular A-21

Adoption Date

Revisions