02.01.06 – Additional Compensation - Exempt Staff

Section: Human Resources

Area: Compensation

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I. PURPOSE AND SCOPE

This document sets forth the parameters within which additional compensation may be provided to exempt staff. This document is prepared in compliance with UH System Administrative Memoranda governing multiple appointments and applicable federal and state regulations. This document applies to all benefits-eligible exempt staff, regardless of the source of funds from which paid.

II. POLICY STATEMENT

It is University of Houston policy that exempt staff are salaried employees and, as such, do not normally receive additional compensation for any of their work activities. Further, exempt staff are not subject to the overtime provisions of the Fair Labor Standards Act and are expected to work whatever hours are necessary to satisfactorily accomplish their job functions. However, under special and extenuating circumstances, an exempt employee may receive additional compensation for work that falls outside the scope of activities or functions performed as part of his or her regular job assignment.

III. DEFINITIONS

A. Additional Compensation: Pay from UH for work performed outside the employee's normal duties and outside normal work hours, in addition to the employee's regular base salary. Work performed for the University of Houston outside of the employee's normal duties and outside normal work hours is considered an overload assignment.

B. Contract staff: Exempt staff whose terms of employment are defined by contract.

C. Consulting and paid professional service: Activities undertaken for remuneration from a third party where the activity is within the scope of activities, functions, or expertise for which the individual is compensated by the University of Houston.

D. Exempt staff: Staff employees in positions that are not subject to the overtime provisions of the Fair Labor Standards Act. Exempt staff includes professionals, administrators, and executives who are paid on a monthly basis.

E. Fiscal Year: The period beginning September 1 and ending August 31 of the following year.

F. Multiple Employment: Work performed for another component university of the System within the scope of activities, functions, or expertise for which the component university compensates the individual is considered consulting or outside employment. Policy provisions regarding multiple employments are set forth in SAM 02.A.29 – Ethical Conduct of Employees.

F. Normal duties: Work performed within the scope of activities and functions of the employee's regular job assignment.

G. Normal work hours: The hours the employee normally works during a given workweek. Full-time staff employees are required to work a minimum of 40 hours per week unless on approved leave status. Employees are required to work whatever hours are necessary to satisfactorily accomplish their job. Normally, work hours for full-time staff are 8 a.m. to 5 p.m. Monday through Friday with one hour off for lunch.

H. Sponsored Funds: Ledger 5 and Ledger 1 sponsored projects (including ATP/ARP) over which the Office of Contracts and Grants has stewardship responsibility.

IV. POLICY PROVISIONS

A. Exempt staff working on special projects outside their normal duties and outside their normal work hours may receive additional compensation as follows:

1. Teaching regularly scheduled academic classes, including off-campus and instructional television, and teaching continuing education (non-credit) courses (including short courses, seminars, workshops, and conference) scheduled at the departmental, college, or university level.

2. Special services (e.g., exempt staff working plays and performances, test proctoring, etc.)

3. Other special projects or assignments that are clearly outside the scope of activities or functions performed as part of the employee's regular job assignment and outside of the employee's primary department.

B. Cumulative payments during a fiscal year for additional compensation may not exceed $15,000, or 20 percent of the employee's annual salary, whichever is greater. The employee and the College/Division Administrator of the employee's primary department are responsible for monitoring the total amount of additional compensation received during the fiscal year and for ensuring that it does not exceed the maximum limit.

C. Requests for additional compensation must identify the employee who will be performing the work, include a description of services to be performed, and specify when the work is to be performed. Requests must also indicate a time frame for the work by listing an approximate beginning and ending date.

D. Requests for additional compensation must be approved in advance of services being performed. Requests require approval of the Dean/Director for the employee's primary department, the appropriate College/Division Administrator, the appropriate Vice President for the employee's primary department, and Human Resources.

E. The employee must certify that payment, cumulative with all other additional compensation payments, will not exceed the maximum amount allowed per fiscal year; and the employee must certify that services for additional compensation will be performed on the employee's own time.

F. Additional compensation may not be paid from sponsored research funds without written approval from the sponsor. For additional information regarding sponsored research funds, please see the Division of Research's web site http://www.uh.edu/research/sponsored-projects/proc-pol-guide/ .

G. H1-B employees should not be considered for additional compensation without prior consultation with Human Resources to determine if an amendment to their H1-B petition is required.

H. Prior approval is not required for participation as a human subject in an approved protocol.

I. Employment agreements for executive management employees as defined by Board of Regents Policy 57.10 supersede provisions of this document.

J. Policy provisions regarding additional compensation for faculty are promulgated by the Office of the Senior Vice President for Academic Affairs and Provost.

K. Contract staff with employment contracts listing additional compensation supersedes provisions of this document.

L. Exceptions to this document will be handled on a case-by-case basis by the Associate Vice President for Human Resources.

M. All additional compensation payments must be made through the university's payroll system and are subject to withholding and other payroll deductions.

V. GENERAL PROCEDURES

A. The department requesting the additional compensation must submit a Request for Additional Compensation Form prior to the employee performing the additional assignment. The form must identify the employee, who will be performing the work, include a description of services to be performed, and specify when the work is to be performed. The approval of the Dean/Director of the requesting department is required.

B. The employee must sign the Request for Additional Compensation Form certifying the additional compensation, cumulative with all other additional compensation payments, will not exceed $15,000 or 20 percent of the employee's salary, whichever is greater. The employee must also sign an Addendum to Request for Additional Compensation Form , certifying the additional work will be performed on the employee's own time. The addendum must be approved by the employee's immediate supervisor.

C. The Dean/Director for the employee's primary department must approve the request. The College/Division Administrator for the employee's primary department must also approve the request and addendum. Approval of the request by the College/Division Administrator certifies the additional compensation, cumulative with all other additional compensation payments to the employee, will not exceed $15,000 or 20 percent of his/her annual salary, whichever is greater.

D. The appropriate Vice President for the employee's primary department, or his designee, must approve the request.

E. The request form and addendum should be submitted to Human Resources for approval prior to the employee commencing work. Human Resources will review the request for compliance with the provisions of this document and approve accordingly. Exceptions to this MAPP will be reviewed and approved by the Associate Vice President for Human Resources. The original request and addendum (or scanned copy) will be returned to the originating department pending submittal of an electronic personnel action request (ePAR) for the additional compensation.

F. An electronic personnel action request (ePAR) is to be submitted to Human Resources with the request and addendum attached. Additional compensation assignments do not have an associated full-time equivalency or FTE, and are to be coded with 1 standard hour on the electronic personnel action request.

G. Additional compensation assignments for non-teaching services must be placed in an Exempt Staff Overload position using job code 3210. Additional compensation for teaching services must be placed in a Temporary Faculty position using job code 1140.

H. Human Resources will process the ePAR and file the ePAR, request and addendum in the employee's personnel file.

REFERENCES

Fair Labor Standards Act (FLSA)
Board of Regents Policy 57.01.2 – Code of Ethics
Board of Regents Policy 57.10 – Executive Management Employees
UH System Administrative Memorandum 02.A.24 – Employees and Independent Contractors
UH System Administrative Memorandum 02.A.29 – Ethical Conduct of Employees
UH System Administrative Memorandum 02.B.02 – Overtime and Compensatory Time
MAPP 02.01.03 – Overtime/Compensatory Time
MAPP 02.03.02 – Contracting for Services Using Contract Workforce vs. Employment
Division of Research Policies and Procedures Guidelines Web site

Issued: 07/31/2001
Last Reviewed/Revised: 02/08/2019
Responsible Office(s): Finance