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Supplemental Compensation for Faculty and Staff

Supplemental Compensation for Faculty and Staff

Authority: 
Academic and Student Affairs
Date enacted or revised: 
January 11, 2012
In F/S Handbook: 
yes
Faculty work days are flexible and may include weekends, evenings, or other non-traditional schedules; therefore, faculty may engage in extra service or work activities for supplemental compensation if the activities do not conflict with regularly scheduled or assigned duties such as teaching, office hours, committee work, usual university service or scholarly productivity.  The McNeese State University policy for supplemental compensation is consistent with Federal and State regulations and statutes.  The policy for supplemental compensation addresses instances where the faculty member provides services above the regular full-time workload, and outside of hours scheduled for the normal workload.  For such additional work, the faculty member is paid through the university.  Staff members or 12 month faculty  may perform work for supplemental compensation provided the work is performed outside of normal work hours, and the work activity is different from the employee's normal tasks.
 
The work for which supplemental compensation is paid must not interfere or conflict with regular university duties, and must be approved in advance through the university's administrative processes. Print and complete the appropriate forms as required for processing.  
Faculty or staff cannot receive supplemental compensation for work that has already been compensated by or through university sources or when conducting work related to University responsibilities.  Additional compensation is subject to a cap equal to 25 percent of the base appointment salary plus faculty summer salary.  Stipends for endowed professorships or Pinnacle Excellence Awards do not factor into the 25 percent limit or the base salary.
 
Institutional Base Salary: The annual compensation paid for job duties. 
 
Categories for Supplemental Compensation:  For the purposes of the Guidelines for Approval of Supplemental Compensation paid by the University, two general categories of activities are allowed for supplemental compensation:
 
Compensation for Overload Teaching:  Additional teaching duties performed during the normal academic year or summer session.  Overload pay is provided for faculty who teach additional courses that are included in the University class schedule.  Overload pay does not factor into supplemental compensation limit calculations.  Pay for teaching overload is according to the current University scale. 
 
Compensation for Grant or Sponsored Program Work:  If allowed by the sponsor, additional compensation from research and sponsored program funds may be paid to a faculty or staff member provided such request conforms to the established policies of the University and follows applicable state and federal regulations.  All such requests must be routed to the Office of Research Services and Sponsored Programs for verification of sponsor approval.   Other sponsored program work may provide supplemental pay to a faculty or staff member.  Such work may consist of teaching credit courses specific to an agreement with an external agency or short term activities such as teaching seminars, professional development short courses, or other similar work done above and beyond the full-time work schedule.  Supplemental pay for work beyond the usual job expectation is approved through  academic departments; and the process for approval follows procedure originating in the department and moving from department to college, and then to vice president, president, and University of System for approval.  A specific pay scale derived from the sponsoring agency or other factors may be used for supplemental pay for teaching professional development, continuing education credit, or non-credit courses.  In no event will charges to sponsored agreements, irrespective of the basis of computation, exceed the proportionate share of the base salary for that period. 
 
Additional compensation is subject to audit.  To comply with audit expectations, the University must have and abide by clear policies and procedures governing compensation.  To ensure equitable application of McNeese's faculty workload policy, these guidelines apply to all projects regardless of the source of funding (federal, state, local government, and non-/for- profit private entities) and whether the project is fixed price or cost-reimbursable.  Endowed professorship or Pinnacle Excellence Award stipends are not counted against the limit for supplemental compensation.
 
For example, using Federal funds to compensate faculty beyond their institutional base salary is largely prohibited.  In unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his regular departmental load, any charges for such work representing extra compensation above the base salary are allowable provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency. 
 
However, a 9 month faculty member may receive compensation paid by or through the University during the summer period between the end of one academic year and the start of the next.  The maximum rate for work done outside the academic year is 2/9 of the individual's base salary. 
Additional compensation is subject to a cap equal to 25 percent of the base appointment salary (plus summer salary).  The cap applies to all sources of funds.  See example below.
 
  • Maximum Salary for 9-month Faculty Members: 
    Faculty members on 9-month academic year (AY) appointments may receive up to 25 percent of their base appointment salary in additional compensation.

    9-month faculty example: A faculty member with a 9-month AY base salary of $50,000 may earn additional compensation during the nine-month appointment of up to $12,500 for a maximum nine-month salary of $62,500.
    $50,000 × 0.25 = $12,500 maximum in additional compensation
    $50,000 + $12,500 = $62,500 maximum 9 month compensation
 
  • Maximum Summer Salary for Faculty Members:
    Federal and state regulations limit the amount of salary faculty members may earn during the summer from research and sponsored programs.  McNeese State University limits salaries for summer assignments to 2/9 of the academic year salary, plus 25% of summer salary.

Summer Faculty Example: A faculty member with a 9-month AY base salary of $50,000 may earn up to $11,111 in summer salary (equal to2/9th) and additional compensation of up to 25 percent or $2,778.
$50,000/9 mo × 2 = $11,111 maximum summer salary (2/9th).
$11,111 x 0.25 =$2,778.
$11,111 + $2,778 =$13,889.
 
The Office of Research Services and Sponsored Programs should be contacted concerning fringe benefits included in supplemental compensation provided by external funds.
 
Guidelines for Approval to Earn Supplemental Compensation-Overload Teaching
 
  1.  A faculty member must be certified by the department head and dean as teaching a full load.  The activity for which supplemental compensation is being recommended must be approved by the department head and dean.
  2. The overload shall not in any way interfere with the regular duties of the individual, as certified by the dean or supervisor
  3. The "Request for Supplemental Compensation (Faculty/Staff)" form should be approved in writing by the department head or dean in advance of performance of the work.   
  4. The head of the budget unit from which funds are used to pay the supplemental compensation must sign the form.  The signed form must be submitted to the Office of Academic and Student  Affairs for approval prior to the work beginning.
  5. Department head and deans should analyze carefully the total professional commitments, including outside consulting, of the faculty member requesting additional compensation.  Additional compensation should be approved only if the faculty member's and the department are general functions will not be adversely affected.
  6. Federal funds may not be used during normal academic semesters to pay overload or supplemental compensation unless specifically authorized by the sponsoring agency and approved by the Office of Research Services and Sponsored Programs.
  7. The stipend for supplemental compensation must be authorized to be paid at the regular payroll period for the time period in which it is earned.
  8. A faculty member may engage in only one activity for supplemental compensation unless approved by the dean and provost.
  9. Supplemental compensation will not be allowed if a conflict of interest or conflict of commitment; or potential conflict of interest or commitment is involved.
  10. University funds will not be used for supplemental compensation for research, research consulting, collaboration, or creative works.
  11. Activities for which supplemental compensation is earned must not be related to outside employment activities.  Outside employment must be disclosed in accordance with University of Louisiana System, State of Louisiana Code of Ethics, and McNeese State University policies.
 
Guidelines for Approval to Earn Supplemental Compensation-Grants or Sponsored Programs (Note:  Stipends for Endowed Professorships or Pinnacle Excellence Awards are not included in base salary or as part of the limit on supplemental compensation)
  1. A faculty member must be certified by the department head and dean and budget unit head as working during the term break.  The activity for which supplemental compensation is being recommended must be approved by the department head and dean.
  2. A faculty member must complete the "Request for Supplemental Compensation (Faculty/Staff)" form.
  3. The head of the budget unit from which funds to pay the supplement compensation must sign the Request for Supplemental Compensation form.  The signed form must be submitted to the Office of Academic and Student Affairs for approval.
  4. Federal funds are used to fund supplemental compensation according to agency guidelines and Federal Regulations.  In general faculty may earn up to 2/9 of their salary between academic terms.
  5. Use of external funds for supplemental compensation during the summer session must be approved by the Office of Research Services and Sponsored programs, the department head, dean and provost.
  6. Sponsored project funding may not be used during the summer months to pay for work performed during the academic year, nor may these funds be used to supplement compensation that may be paid at a lower than base salary rate.
  7. Compensation must be for actual work performed on the project from which the funds are paid.
  8. Any person paid (or with a commitment) through a federally sponsored award must certify that the salary paid (or the commitment) is reasonable in relation to the effort (activity) devoted to the award.  The individual faculty or staff member may report his/her own effort, or a "responsible person with/using suitable means of verification that the work was performed" may report for the individual.  (See "Time and Effort Reporting Policy" on RSSP website.)