Extra Compensation for Staff
POLICY NUMBER: III F
SUBJECT: EXTRA COMPENSATION FOR STAFF
APPLIES TO : STAFF
EFFECTIVE DATE: July 1, 1993
REVISED FROM: February 17, 1990
EXTRA COMPENSATION FOR STAFF
The policy of the University is to arrange for an employee to be released from normal duties to perform specialized work both within and outside the University. Overload pay will be the exception.
On rare occasions when overload payment to exempt staff is appropriate and has been formally approved, it will be kept to a minimum and in no case will a combination of outside consulting and overload assignments exceed twenty (20) percent of a staff member's time.
Fiscal year faculty and exempt staff are considered to be assigned for 52 weeks per year. Therefore, fiscal year employees will have limited opportunity for overload assignments by the University.
Non-exempt staff are normally those University employees who are employed on an hourly basis. According to their assigned work positions, they may be expected to work either 37.5 or 40 hours per week. Only in exceptional cases will non-exempt staff be allowed to work on special projects and receive overload/overtime compensation.
These policies include faculty and other exempt staff who teach continuing education classes; such as, but not limited to, off-campus classes, correspondence courses, KET courses, evening and weekend classes, non-credit courses, workshops, conferences, and special programs for extra compensation.
In no circumstances will payment be made before written approval is obtained and the work or service has been provided. Each vice president is responsible for ensuring extra pay to employees does not exceed the maximum established in this policy.
1. Criteria for Receiving Extra Compensation
a. Extra compensation may be paid to staff only when all of the following requirements are met:
(l) If to be paid from sponsored funds, overload payment will only be paid if the project includes recovery of full indirect costs. (Reference: Department of Accounting's Grants and Contracts Policy 1GEN:01:01)
(2) No qualified person is available to perform the work as part of a full or normal workload.
(3) The work is done in addition to a full workload and cannot be done as a part of a full or normal workload.
(4) The additional work will not interfere with the performance of regularly assigned teaching, research, service, administrative, or other duties.
(5) If to be paid from sponsored funds, sponsor approval is required; approval may be shown in the grant agreement or subsequent approval may be obtained after the award has been received but before the service is provided. (Reference: Grants and Contracts Policy lGEN:01:0l)
(6) The individual and the immediate supervisor for the overload position will be required to certify that the work has been done. The individual's supervisor for the regular position will be required to certify that the regular assigned duties were not affected.
(7) Total overload compensation will not exceed twenty (20) percent of the base salary during the employee's base contract period.
(8) The work for overload compensation is approved in advance by the individual's chair, dean or director and vice president; by the vice president for whom the service is provided if the service is provided outside the employee's area; and by the President. (Request for Extra Compensation, Personnel Form No. 7)
2. Eligibility for Extra Compensation
a. Staff may be paid extra compensation for extra work performed for approved programs, grants, contracts, etc., if the work performed is not part of his/her work assignment or no one else on campus can perform this work as part of his/her normal employment.
b. Full-time staff are not eligible for extra compensation for service activities which are a part of their regularly assigned duties and responsibilities.
c. Staff cannot receive extra compensation from University funds or University generated funds for consultative services when either of the following conditions exists:
(1) Where the unit of the University on whose budget staff member appears also controls the account from which extra compensation is to be paid.
(2) Where the unit of the University on whose budget staff member appears is a major sponsor of the program.
(3) These conditions may be waived by the President if the services rendered are deemed beneficial to the total University.
d. Additional factors which must be given careful review are the clientele to be served by staff member's participation and the function which staff member will perform. Individuals should not be paid extra compensation for participation in programs which serve the same clientele as that which staff member was employed to serve. Nor should he/she receive extra compensation to perform essentially the same function as that for which he/she was employed.
3. Limitations on Extra Compensation
a. Exempt Staff
(l) An exempt staff employee may be expected to work more than the normal University workweek of 37.5 hours per week at his/her regularly assigned position without receiving extra compensation. Occasionally, a particular employee may possess an expertise needed in order for the University to fulfill the objectives of a grant or a contract. When this needed expertise is to be used outside the regularly assigned workload of the employee, that employee may receive overload compensation for the work that is performed. In the case of work on a grant or contract, the granting agency must be informed and give written approval, by name, for any employee to receive overload pay. In no case will total overload compensation exceed 20 percent of the employee's base salary.
(2) An exempt employee will not be paid at a higher rate for work performed on externally sponsored activities than he/she is paid for regular workload. Extra pay rate for faculty and exempt staff will be calculated as follows:
Monthly rate of pay
Fiscal year salary divided by l2.
Daily rate of pay
Monthly rate divided by 2l.75.
Hourly rate of pay
Daily rate divided by 7.5.
b. Non-Exempt Staff Doing Non-Exempt Work
(1) Non-exempt employees are required to report hours worked each week and are paid an hourly rate of pay for all hours worked. The normal workweek for the University is Friday midnight until the following Friday midnight. A non-exempt employee who works more than 40 hours during this workweek must be paid an overtime rate of l.5 times the employees regular rate of pay.
(2) Only in exceptional cases will non-exempt employees be permitted to work in two positions concurrently. In such cases, work performed for a grant or contract may not result in the payment of overtime.
(3) On rare occasions when a non-exempt employee is doing work which significantly differs from his/her normal duties, the principal investigator/project director will write a job description for the additional duties, including rate of pay. The Director of Human Resources will have final approval of the additional duties and rate of pay.
4. Grants and Contracts Requirements
By authorizing extra compensation work in advance and payment being made only after the work is performed, the documentation of personal service charges as required for grants and contracts will be satisfied. (Reference: Grants and Contracts Policy lGEN:01:0l)