Extra Compensation

Extra compensation (formerly dual compensation) is compensation to Faculty, Administration, and Staff for contracted activities in excess of the established FTE of the position, or the simultaneous appointment of an employee in a benefit earning position and a Temporary non-benefit earning  position.  Activities that qualify for extra compensation include credit instruction, non-credit instruction, temporary assignments to sponsored projects, and other temporary consulting arrangements, normally across departmental lines.

Extra compensation does not include Special Pay Increases (SPI) for additional compensation for a temporary increase in responsibilities associated with the employee’s primary appointment or Pay for Performance (PFP) for short-term accomplishments, performance on a special project, or reaching an established major goal or objective.  The key to differentiating extra compensation from SPIs and PFPs is that extra compensation is pay for work that is substantially different than the employee’s primary duties and responsibilities or is similar work for a different administrative unit of the university (across colleges or departments).

There are two types of extra compensation: faculty and non-faculty.   Both faculty and non-faculty extra compensation forms follow the same approval process.  The process requires theRequest for Approval of Extra Compensation form to be completed for each extra compensation appointment for both faculty and non-faculty.   In addition the faculty member’s dean and chairperson/unit head or the non-faculty member’s primary supervisor must approve the secondary appointment.

Both of these circumstances involve situations in which an employee is performing two distinct jobs.   If an employee receives extra duties in the course of their regular job, even if these duties result in working over 40 hours in a workweek, an extra compensation appointment may not be appropriate.   It might be appropriate for a non-exempt (Staff) employee to be compensated through overtime payment or compensatory leave time.   It might be appropriate for an exempt (Administration) employee to perform the duties temporarily as part of the regular job, to receive an “Acting” appointment on another position, or to receive a temporary stipend.

Extra Compensation requests are reviewed and approved by Human Resources in order to ensure that a second appointment is the appropriate way to pay the employee.
 
Important Information:

IMPORTANT INFORMATION REGARDING REWARD PAYMENTS (SALARY INCREASES AND BONUS PAYMENTS) FOR EMPLOYEES WHO RECRUIT STUDENTS
Effective July 1, 2011, the Higher Education Act (HEA) is prohibiting any merit increase, commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid, to any person or entity who is engaged in any student recruitment or admission activity, or in making decisions regarding the awarding of Title IV, HEA program funds.  As a result, employees cannot be rewarded for enrollment, admissions or financial aid goals, or program completion, retention or graduation rates.  If you have any questions regarding this regulation, please don’t hesitate to contact your HR Service Center Manager.

See FIND IT for links to additional information on Faculty extra compensation.

FIND IT

Academic Affairs Policy Statement on Faculty Extra Compensation

Faculty Extra Compensation Guidelines for Research

OMB Circular A-21, J.10(d)

Outside Activities Form


Have a Question? Contact your Service Center.

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