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Additional Compensation Policy

Policy Number: BA-12

Effective: 08/25/2020

Last Revised: 08/25/2020

Responsible Executive: Executive Vice President & CFO

Contact Information: 765-677-2605

I. Scope

This policy applies to all employees who receive additional compensation for work performed distinctly separate from or in addition to their primary position.

II. Policy Statement

The base salary of employees is intended as full compensation for job related duties for the University.  However, it may be necessary for employees to take on temporary responsibilities that are distinctly separate from or in addition to their primary position.  In such instances, the employee may be eligible to receive additional compensation.  Any compensation received in these instances is not considered base salary and therefore is not eligible for university benefits (i.e., retirement contributions). 

Non-exempt (hourly) employees are not eligible for stipend compensation as they will receive overtime pay. 

In order to qualify for additional compensation, the additional duties must be temporary in nature, do not conflict or reduce effectiveness of primary job responsibilities, and disclosed to the employee’s immediate supervisor. 

All additional compensation is subject to further review by the associated Executive Council member.  As a guide, a $15,000 per fiscal year threshold will be used. 

In addition, eligible additional compensation must fall into one of the following categories: 

  • Overload Pay:Payment made to a faculty member for teaching a course in addition to the course load stated in their annual contract.
  • Adjunct Pay:  Payment made to an exempt staff member for teaching a class that is not assigned as part of the individual’s job responsibilities. 
  • Faculty Stipend Pay:  Payment made to a faculty member assigned other responsibilities that are not part of the customary faculty workload and are temporary in nature.
    • Example Stipends:  Division chair, assessment fellow, large class size, curriculum writing, etc.
  • Administrative Stipend Pay:  Payment made to a salaried staff member for work performed that is distinctly separate from the employee’s primary position.
    • Employees are not eligible to receive compensation for work that is performed inside their home department (where their primary position is assigned).
    • Employees may be eligible for additional compensation if the services are outside their home department.  Approvals should be obtained from the employee’s supervisor before requesting the additional work. 
    • In a rare instance when compensation has a tie to the employee’s home department and where additional duties include an additional 25% or more of new responsibilities, additional approval is needed from Human Resources and the associated Executive Council member.  Additional duties must be temporary, otherwise the position should be re-graded with Human Resources. 
    • All decisions regarding the appropriateness of administrative stipend pay must also be approved by Human Resources.
  • Interim Stipend Pay:  Payment made for an employee appointment to a position on a temporary basis.
    • An employee being considered for interim assignment must meet minimum qualifications of interim role in order to be considered for assignment.
    • The employee must assume the majority (at least 70%) of the job responsibilities of the higher position.
    • Compensation will utilize the midpoint salary of the classification level to assist in determining appropriate/equitable interim salary.  Alternatively, if the interim assignment is for a single-incumbent role, the external market value of a job can be identified by Human Resources.
    • An interim increase should be no more than 10% to 15% of interim employee's current salary.  All interim increases above 15% of interim employee's current salary require prior approval from Human Resources and Executive Council member responsible for that area.
    • Employee's interim pay should not be greater than the pay rate of the previous incumbent except under exceptional circumstances. This requires prior approval from Human Resources.
    • The interim assignment shall be reviewed every 6 months.
    • All decisions regarding the appropriateness of interim stipend pay must also be approved by Human Resources.

If all criteria for additional pay is met, it is the supervisor’s responsibility to be sure that all approvals are obtained, budget requirements are met, and compensation equity is maintained before offering additional compensation to an employee.

III. Reason for the Policy

This policy provides University managers and supervisors with guidelines and procedures for additional compensation for employees.

IV. Procedures

    1. Confirm additional duties meet requirements in policy. It is recommended that you consult with Human Resources to confirm your analysis.

    2. Assure budget is available for the additional payment.

    3. Submit an Employee Action Form (EAF) to request additional payment routing it through Human Resources for approvals for Administrative and Interim Stipend Pay. For all other academic forms of additional compensation, submit your requests through the associated academic unit contract system.

    4. Notify employee upon approval.

V. Definitions

Adjunct Pay:  Payment made to an exempt staff member for teaching a class that is not assigned as part of the individual’s job responsibilities. 

Administrative Stipend Pay: Payment made to a salaried staff member for work performed that is distinctly separate from the employee’s primary position.

Faculty Stipend Pay:  Payment made to a faculty member assigned other responsibilities that are not part of the customary faculty workload and are temporary in nature.

Interim Stipend Pay:  Payment made for an employee appointment to a position on a temporary basis.

Overload Pay:  Payment made to a faculty member for teaching a class.

VI. Sanctions

Violating the provisions of this policy may result in disciplinary action.

VII. Related Information

Gift Card Policy

Honoring Employees Policy