POLICY STATEMENT #99

ADDITIONAL COMPENSATION FOR
PROFESSIONAL SERVICES TO THE UNIVERSITY

I. Scope

This Policy applies to additional compensation paid to UNC Charlotte faculty and staff through the University Payroll Office. This Policy is not intended to modify any of the existing policies or procedures governing the administration of University salaries or payments for external consulting (see Policy Statement #1 on External Professional Activities for Pay).

II. Definitions

For the purposes of this Policy, the following definitions apply:

Contract Period. For nine-month faculty the contract period is generally August 15 through May 15. The specific dates of the Contract Period in any one case are based on the faculty member’s employment contract.

Outside the Contract Period. For nine-month faculty this period is generally from May 16 through August 14. The specific dates of the time Outside the Contract Period in any one case are based on the faculty member’s employment contract.

Base Salary. The annual permanent salary of the employee as it appears in the employment contract of the employee or subsequent letters of notice of salary increase/decrease. The Base Salary includes any supplemental administrative stipends of one year or more but does not include temporary payments from one-time funds for a period of less than one year.

Incidental Compensation. Special payments beyond the Base Salary paid to faculty and staff from a temporary source of funds for activities of short duration including, but not limited to, activities such as conducting seminars, workshops, and training in other than the home department; teaching continuing education courses; dual employment payments from other state agencies; internal grant stipends from the Office of the Provost; and other interim and temporary assignments of less than one year.

Supplemental Compensation. Supplemental Compensation includes government-sponsored research payments to 9-month faculty Outside the Contract Period and permanent stipends (more than one year) for assuming administrative assignments such as graduate coordinators and department chairs.

Additional Compensation. All extra compensation paid to faculty and staff through the University Payroll Office including both Incidental Compensation and Supplemental Compensation.

III. General Policy
For a full-time member of the faculty or EPA staff, the salary approved by the Chancellor, Board of Trustees, or Board of Governors is the Base Salary to be paid during the Contract Period. No Additional Compensation may be paid for University duties that are generally related to the position to which the individual is appointed during the Contract Period. No Senior Academic and Administrative Officer (see Policy Statement #81) may be paid, in addition to his or her salary, for any services rendered to any institution-related foundation, endowment, or other entity that (a) was established by officers of the University, (b) is controlled by the University, or (c) is tax-exempt based on being a support organization for the University.

Upon appropriate approvals, individuals with appointments at less than full-time (e.g. .75 FTE) during an Academic or Fiscal Year can increase their commitment up to full-time (e.g. 1.0 FTE) with additional compensation beyond their Base Salary.

Incidental Compensation has limitations based on time, not salary. A maximum commitment of time of 120% is allowed under certain circumstances as provided below, as long as these extra services do not cause a conflict of commitment with the primary employment position of the employee.

In the case of a federal grant or contract, the rate of pay for Additional Compensation Outside the Contract Period must be the same as the base rate of pay for the contracted assignment.

This Policy is intended to comply with applicable federal and state restrictions on level of effort. Federal restrictions permit up to 3/9 effort (see Appendix A ) Outside the Contract Period and no more than 100% of total compensated effort during the Contracted Period.

Appendix A provides examples of Additional Compensation and the limits that apply.

IV. Payments from Internal Funds (Incidental Compensation)

A. Internal Grant Stipends
Faculty members can receive Additional Compensation in the form of a one-time stipend from internal research and curriculum development projects. This includes, but is not limited to, Junior and Senior Faculty Research Grants, Curriculum Development Grants (CID), and Academic Program Improvement Grants (API) funded by the Provost’s office. These faculty development stipends are usually paid on May 15 and the maximum amounts of the stipends are set by the respective committees that approve these awards.

B. Seminars, Workshops, and Training (other than through the Office of Continuing Education)
Approval may be granted for Additional Compensation during the Contract Period for conducting non-credit short courses or presenting special lectures, seminars, workshops and conferences for continuing professional education. These services must be outside the home department to qualify for Additional Compensation and require advanced review and approval by the appropriate supervisor. The justification for these payments must address how the compensation amount was determined.

C. Administrative Assignments
Faculty members and EPA staff occasionally assume administrative duties for which Additional Compensation, usually in the form of a temporary stipend, is appropriate. Examples include assignments of one year or less as coordinators of undergraduate, graduate, or special programs. Interim appointments to a higher level of administrative responsibility, such as interim department chair, dean or director, may also result in Additional Compensation.

If payment for any of these administrative services is in the form of a “permanent” stipend (from permanent funds) or is for a period exceeding one year, then this stipend will be considered Supplemental Compensation and part of the Base Salary.

D. One-Time Special Payments
In some cases, a special (one-time) payment may be allowed to faculty or EPA staff. An example that might be approved could be a one-time payment for developing a new distance education program during the Contract Period or Outside the Contract Period. Another example could be a payment to 9-month faculty member for participating in a Summer Institute on diversity or other atypical activities that are not part of the job duties of the employee and may be performed outside of their normal working hours. Service activities (e.g. serving on a search or review committee) are viewed as routine employment expectations; therefore, faculty and EPA staff employees should not expect Additional Compensation for such activities. In no case shall a one-time supplemental payment be paid as or construed to be a bonus for performance.

One-time special payments must be reviewed and approved in advance by the department head and dean or unit head and appropriate vice chancellor. A memo of justification for these payments should accompany the PD-7 and must address how the compensation amount was determined. The memo of justification must also clearly identify the activities covered, the relationship of the activities to normal job responsibilities, and the expected duration of the activities.

SPA employees are not eligible for one-time pay arrangements under this subsection D. SPA employees who are eligible for overtime under FLSA regulations may not be given supplemental pay in lieu of overtime. In cases of SPA employees who are not subject to overtime, the department head may, at its discretion, consider recognizing the extra time worked on an hour-for-hour basis. In cases where the department head has questions concerning the relationship of work to be performed to an employee’s normal job responsibilities, the department head should consult with Human Resources for guidance prior to allowing the employee to enter into such work assignment.

E. Dual Employment
Dual employment occurs when a University employee agrees to perform services for another state agency on a part-time or contractual basis. Approval must be obtained from the supervisor of the primary employment position before the service is provided in order to ascertain whether the obligation will interfere with the job duties and commitments of the primary position. If approved, all payments to the employee must be sent (along with Form CP-30) from the borrowing agency to the University and paid through the University payroll. The entire Office of State Personnel policy on dual employment can be accessed at www.osp.state.nc.us/manuals/man3.html.

V. Payments for Teaching or Additional Teaching

A. Overload Instruction
Faculty should generally not be paid extra for teaching credit courses in addition to their normal course load. Instead, other arrangements may be made, such as a corresponding course reduction in the following semester. Under extraordinary circumstances (e.g. coverage for another faculty member on emergency medical leave) and with approval of the chair and dean, overload pay may be approved for faculty that agree to teach additional credit courses beyond the departmental standard load, if there are no external candidates available to hire and if it does not cause a conflict of commitment with the other duties of the faculty member. There is a one course per semester limit on this type of payment.

B. Teaching Continuing Education Programs

Faculty may be approved by their chair and dean for Additional Compensation for teaching non-credit programs offered through the Office of Continuing Education as long as such work does not cause a conflict of commitment with their regular job duties. Compensation rates are generally dependent on generation of program revenue.

C. Summer School Instruction

Due to government restrictions on the level of effort, a 9-month faculty member who participates in government-sponsored research Outside the Contract Period can teach summer sessions as long as his/her research effort and supplemental compensation from the sponsor is less than 3/9ths of his/her salary base. The summer rate of pay is determined by the department chair according to the allocation and recommendation of the Director of Summer Programs.

D. Teaching by SPA or EPA Staff

Non-teaching staff, both EPA and SPA, whose duties are tied to the normal workweek schedule of the University, may be allowed, subject to advance approval by the appropriate supervisor, to take on a University teaching responsibility for Additional Compensation, assuming the employee possesses special skills not readily available in the marketplace. A staff member’s primary employment responsibilities take priority over any additional part-time teaching assignments. Generally, this teaching responsibility must be carried out at times other than during the normal working hours established for full-time employment responsibility.

However, in extraordinary circumstances, when the teaching responsibility must take place during the course of the employee’s normal working hours, such exceptions must be approved in advance by the appropriate dean or vice chancellor. Paid leave may not be used to account for the time the employee is working the additional assignment, but Leave Without Pay is an option if approved by the supervisor. If Leave Without Pay is not used to account for the time away from normal working assignments, an alternate work schedule must be approved and forwarded with the appropriate assignment documentation (PD-7, PD-17) for inclusion in the employee’s official personnel record (EPA to Office of Academic Affairs, SPA to Human Resources). The appropriate dean or vice chancellor must review and recertify such arrangements annually, and, if necessary, coordinate for continued concurrence with the appropriate supervisor.

VI. Payments from External Funds

For nine-month faculty, Supplemental Compensation can be earned Outside the Contract Period for University-sponsored research that is externally funded by a governmental agency as approved by the department chair, dean, and the Office of Sponsored Programs. The maximum payment is 3/9ths of the base salary or 100% of time.

Government sponsors do not permit compensation beyond the base rate of pay during the Contract Period. As a general rule, faculty members (9 and 12 months) involved in government-funded research during the Contract Period should have their other assigned responsibilities reduced through a “released time” arrangement. For non-government sponsors, Additional Compensation can be paid during the Contract Period if permitted by the sponsor and approved by the chair and dean. These payments are processed on a PD-7 (special pay) and require the signatures of the department chair and dean along with an explanation of the source of the non-governmental funds and will be reviewed by the Office of Sponsored Programs.

VII. Additional Compensation for 12-Month EPA & SPA Staff

For non-teaching EPA and SPA staff, additional activities for pay must not interfere with the staff member's normal duties, must be outside the scope of the employee’s normal job responsibilities, and must be carried out at times other than during the normal working hours established for the full-time employment responsibility of that staff member. In extraordinary circumstances, when justified, additional activities for pay must take place during the course of the employee’s normal working hours, such exceptions must be approved in advance by the appropriate dean or vice chancellor, and be submitted in advance for review by Human Resources (for SPA) and Office of Academic Affairs (for EPA).

Paid leave may not be used to account for the time the employee is working the additional assignment, but Leave Without Pay is an option if approved by the supervisor. If Leave Without Pay is not used to account for the time away from normal working assignments, an alternate work schedule must be approved and forwarded with the appropriate assignment documentation (PD-7, PD-17) for inclusion in the employee’s official personnel record (EPA to Office of Academic Affairs, SPA to Human Resources). Documentation must clearly identify the activities covered and the relationship of the activities to normal job responsibilities. Under no circumstances should Additional Compensation for an EPA or SPA staff member be extended or considered as a bonus for performance. The appropriate dean or vice chancellor must review and recertify such arrangements annually. See Appendix A.

VIII. Procedures for Payment of Additional Compensation

A. Timing of Requests

Payments for Additional Compensation should be requested on an Academic Personnel Form (UNC Charlotte PD-7/special payment) in advance of initiation of the work. The department requiring the effort should initiate the request stating the nature and duration of the project. Project duration, compensation rates, and timing of payment should be resolved prior to the beginning of projects. The PD-7 will indicate the number/timing of payments. As proposals are reviewed and approved, an individual's total time commitments on institutional as well as external professional activities (e.g., outside consulting) will be considered.

All one-time special payments require a memo of justification for these payments and must address how the compensation amount was determined. (See Section IV.D., One-Time Special Payments, above).

B. Duration

No work assignment that results in Additional Compensation may exceed one year; provided, however, that any such additional work assignment may be extended or renewed on a case-by-case basis.

C. Approvals

Requests for payments of Additional Compensation must be approved by the department chair and dean of the faculty member or the Unit Head and the Vice Chancellor of the staff member for whom the payments are requested. These approvals are indicated by their signature on the PD-7 or PD-17. Additional Compensation in the form of stipends for internal research and curriculum development activities funded through the UNC Charlotte Faculty Development Program (administered by the Office of the Provost) are authorized by a PD-7 signed by the Provost.

For SPA employees, all documentation must be reviewed by Human Resources for compliance reasons prior to the commencement of paid activities. and such documentation shall be retained in the employee’s personnel files.

If the employee receiving Additional Compensation is in a different department/unit from the requestor of the work or assignment, the department chair/supervisor of the employee should be consulted for approval in order to consider such issues as work-load management. The PD-7 should be signed by both the requestor and the chair/supervisor of the employee.

C. Method of Payment and Deductions

Payment of Additional Compensation will be processed as compensation to employees (and not as payments to independent contractors) through the payroll section and will have federal/state taxes and other appropriate deductions withheld. Payments will be identified as Additional Compensation above the amount paid as the Base Salary.