Extra Compensation (Salaried Non-Faculty)
|PPM 3-48, Extra Compensation
1.0 PURPOSE AND SCOPE
This policy describes the rules governing extra compensation for salaried non-faculty employees. This policy applies solely to funds administered and paid by the University.
2.1 PPM 3-2, Employee Definitions
2.2 PPM 3-2a, Fair Labor Standards Act (FLSA)
3.1 Extra compensation – Payment for services rendered in addition to an employee’s regular salaried effort.
3.2 Funds administered by the University – All funds administered by the University, including general funds, grant and contract funds, restricted and unrestricted funds, auxiliary funds and other agency funds.
3.3 Non-exempt staff – All staff, either admin non-exempt or non-exempt, whose position does not qualify for exemption from the overtime provisions of the Fair Labor Standards Act.
3.4 Median exempt base salary - The median full time equivalent salary of all exempt staff of the university, calculated and communicated by Human Resources at the beginning of each fiscal year.
4.1 Extra Compensation Rates, Limitations, and Approval Authority
4.1.1 The University has the right to pay extra compensation to salaried non-faculty employees who work significant additional time beyond their normal salaried duties.
4.1.2 The rate of extra compensation will be consistent with: 1) the overtime rate if required by law, 2) the current base salary rate (mandatory method for grants and contracts), 3) the rate established by the Human Resource Office for the type of work being performed, or 4) a rate specifically approved by the supervising vice president or equivalent after receiving advice from the Human Resource Office.
4.1.3 Total extra compensation in any fiscal year is subject to the following limits and approvals:
188.8.131.52 The employee’s primary supervisor must review and approve in writing all extra compensation prior to the employee agreeing to additional responsibilities involving extra compensation.
184.108.40.206 Amounts in excess of 33.3% of the greater of the employee’s base salary or the median exempt base salary should be treated as extraordinary exceptions and should be infrequent, temporary, and based on circumstances where critical service needs of the University cannot be met by standard employment processes. These exceptions must be approved in writing by the supervising vice president.
4.2 Other Considerations
4.2.1 The supervisor over the employee’s primary assignment shall document and monitor extra compensation to ensure all policies are followed.
4.2.2 The supervisor over the area where the employee proposes to receive supplemental pay may decide to end the arrangement at any time.
4.2.3 All overtime payments to admin non-exempt and non-exempt staff must be consistent with PPM 3-2a. Non-exempt staff and their supervisor must consult with Human Resources regarding overtime issues before accepting responsibilities resulting in extra compensation.
4.2.4 In their primary assignment, employees should not be expected to continually exceed the typical, average work-week, with or without extra compensation.
4.2.5 Services rendered in addition to an employee's primary assignment are not to impede the discharge of the employee's normal duties during regularly scheduled work hours.
4.2.6 Employees must not receive dual compensation for the same effort.
4.2.7 In addition to the policies outlined in this document, employees whose base salaries and/or extra compensations come from grant and contract funds are subject to the sponsor's regulations and require the approval of the Office of Sponsored Projects for payment of extra compensation.
4.2.8 The vice president of Administrative Services will periodically review the patterns of extra compensation and advise the President's Council on the overall impact and nature of such payments.
Revision History: 4-19-20
Creation Date: 8-17-77
Amended: 10-2-12; 4-19-20