The University of Memphis

Extra Compensation and Outside Employment



POLICIES

Issued: March 31, 2005
Responsible Official: Vice President for Business & Finance
Responsible Office: Human Resources

Policy Statement


Policy Statement

Full-time employment with The University of Memphis demands an individual's full-time professional expertise, commitment, and energies. The assigned teaching load of an academic year/9-month term faculty member constitutes a full-time assignment.

The University of Memphis also recognizes the value to its students, its personnel, and to the citizens of Tennessee arising from outside consulting and other professional experiences in which members of faculty and staff may engage. Such activities contribute to the quality of instruction, enhance the competency of the individual, contribute to the economic development of the state, and bring credit to the institution.  Therefore, under certain circumstances, faculty and administrative/professional staff may need to perform additional assignments for which extra compensation may be warranted. This policy contains the general provisions to cover these circumstances and limitations under which outside employment and/or extra compensation may be appropriate.



Purpose


 To set forth the general provisions to cover the circumstances and limitations under which extra compensation and/or outside employment may be appropriate.


Contents

Definitions
Procedures
Related Forms
FAQs
Links

Definitions


Extra Compensation

Payment by The University of Memphis for work that is (1) on behalf of The University of Memphis and/or its grants and contracts; (2) outside the employee's normal work schedule; and (3) not within the scope of the employee's standard work duties.  Work may be performed while employee is on annual leave or on leave without pay to avoid a conflict with normal work schedules.


Dual Services

The securing of an employee's services by another TBR, University of Tennessee, or other State agency or institution. Examples are: (1) an employee from The University of Memphis provides services for another TBR institution; (2) an employee from another State agency or TBR institution provides services for The University of Memphis. In either case, The University of Memphis must enter into a Dual Services Agreement with the other institution or agency for purposes of paying the employee. Upon completion of the services, the agency/institution providing the employee will bill the contracting agency/institution for the cost of the employee's compensation and benefits and then will pay the employee through its standard payroll process.


Outside EmploymentIncludes consulting and any other external activity for which there is remuneration, these are work assignments with external employers or through external contracts that University employees assume outside of their normal work schedule. Payments for work performed are remitted by external employers or entities that are not directly related to The University of Memphis. Self-employment for the purpose of consulting or performing services are considered to be outside employment.


Procedures


Extra Compensation

Positions Not Eligible for Extra Compensation

The following types of employees and work are not considered to be eligible for Extra Compensation:

  1. Clerical and Support Staff - Extra Compensation rules and processes do not apply. However, all hours worked by these nonexempt employees must be recorded on their time cards and overtime compensation will be paid as appropriate through the payroll system and at their base rate of pay. NOTE: If the staff member should be paid a higher rate of pay for the extra service, contact Compensation in Human Resources for guidance.
  2. Graduate Assistants and Student Personnel - The primary purpose for these individuals to be at the university is to be enrolled in an academic program. Therefore, they are normally ineligible for Extra Compensation. For special instances, an exception may be pursued through the Assistant Vice Provost for the Graduate School.
  3. Certain Professional Activities - Normal, short-term professional activities such as participation in symposia, accreditation visits, speaking engagements, exhibitions, or recitals, even though honoraria may be received for such participation, are not administered as Extra Compensation.
  4. When Work is Performed - Work performed when the employee is not within the term of his or her employment contract period or if the employee is on professional development assignment is not included under the Extra Compensation policy. NOTE:  See UofM policy on Summer Compensation for work performed by academic year/9-month term faculty during summer sessions and inter-sessions.
  5. Ineligible Administrative/Academic Professionals - The following staff may perform services, but they may not receive Extra Compensation:
      • President
      • Provost
      • Vice Presidents
      • Senior Vice Provost
      • Vice Provosts
      • Academic Deans
      • Executive Directors
      • Associate Vice Provosts
      • Assistant Vice Provosts
      • Associate Vice Presidents
      • Assistant Vice Presidents

Steps for Requesting Extra Compensation

The faculty or staff member shall notify appropriate supervisors of the nature of the employment and the expected commitment of time. Prior to accepting an extra assignment, the faculty or staff member must obtain approval from his or her supervisors. Supervisors may approve extra service only for efforts that:

  • Are performed entirely outside of, and in addition to, normal work schedules, assignments, and responsibilities.
  • Do not interfere with assigned duties and responsibilities or with regular University operations.
  • Are consistent with TBR policies and guidelines and with state law. TCA § 49-5-410 limits full-time faculty members to teaching no more than two credit courses per semester for extra pay in an institution of higher education.
  • Do not constitute a conflict of interest or compete with the University's education, research, or public service programs.
  • Require only a reasonable time commitment from the employee.

When the applicable supervisor approves the extra service, faculty or staff shall complete the Extra Compensation-Administrative Summer Authorization Payment Request form, except for credit instruction during the summer. Instructions for completing the form are shown below, and the form is found under Records at: http://bf.memphis.edu/forms/hr.htm.  NOTE: Payment for credit instruction during the summer are authorized on forms generated by Faculty Administrative Services in Academic Affairs.

  • Before services are rendered, type or clearly print in the spaces provided: Employee Name, Social Security Number, Home Department, Timekeeping Location, Job Code, Rank/Title, Description of Services and Dates to be Performed, Earnings Code/Object Code, and Description of Formula to Determine Total Pay.
  • The employee providing the service, that employee's department head/chair, and the head/chair of the department receiving the service shall sign in the appropriate blocks.
  • After the services are performed, type or clearly print information in section "To Be Completed AFTER Services Are Performed."
  • The chair/activity head and the dean/director of the department receiving the service shall sign in the spaces provided.

Submit the properly completed and signed form to the Payroll Office. Forms must be received no later than the 5th day of the month to be paid on the supplemental payroll run on the 15th of the same month. Payments will be processed in the same manner as the employee's regular pay, i.e., direct deposit.


Extra Compensation Limitations

Retirement Credit

The University of Memphis must control the reporting of Extra Compensation earnings to retirement systems. For retirement reporting purposes, TCA § 8-34-101(14)(D) limits credit for compensation from extra services to no more than 25% of base pay. Faculty and staff may earn more than 25% in any reporting period, but the payroll system will report no more than 25% to the Tennessee Consolidated Retirement System (TCRS) or Optional Retirement Plan (ORP), as applicable. 

Earnings Limitations

  • Academic year/9-month faculty may earn an unlimited amount of Extra Compensation during the academic year except that they may teach no more than two credit courses per semester for extra compensation.
  • Fiscal year/12-month faculty and staff may earn an unlimited amount of Extra Compensation during the fiscal year except that faculty may teach no more than two credit courses per semester for extra compensation.
  • See the Summer Compensation Policy for limitations during summer session.

Dual Services

General

When faculty and staff at The University of Memphis perform services for another institution in the Tennessee Board of Regents (TBR) system or for another State agency, the two institutions must enter into a Dual Services Agreement. The faculty or staff who provides the service will be paid by his or her employer institution after the institution invoices the other party for the employee's gross cost of compensation and benefits.

Offices to Contact Regarding Dual Services Agreements

  • If the University of Memphis is the procuring agency, i.e., we are using faculty or staff from another state agency or institution, contact the Purchasing Department at http://bf.memphis.edu/purchase/
  • If the University of Memphis is the vending agency, i.e., one of our faculty or staff is providing services to another state agency or institution, contact the Office of Research Support Services at http://www.people.memphis.edu/~ressvc/

The University of Tennessee

If the other institution is the University of Tennessee (UT), no Dual Services Agreement is required if:

  • the services are provided on an infrequent or irregular basis;
  • payment does not exceed $700.00 per credit hour; and
  • services involve teaching or instruction not in excess of two courses per semester.

Otherwise, the faculty or staff member must ensure that a Dual Services Agreement is executed between The University of Memphis and UT.


Outside Employment

The University of Memphis encourages its faculty and staff to undertake consulting and similar external employment for which they are qualified and that does not interfere with University responsibilities.  However, faculty and staff should not provide consulting services to an external organization when those services would conflict or be in competition with services offered by the University itself. 

Prior to undertaking any outside employment, faculty and staff will notify their department head of the nature of the employment and the expected commitment of time. The following outside activities are not considered to be covered by the provisions in this policy: (1) normal short-term professional activities, such as participation in symposia, accreditation visits, speaking engagements, exhibitions, or recitals, even though honoraria may be received or (2) activities carried on outside the employment contract period or while on leave from the University.

Outside Employment by Faculty and Administrative/Professionals:

  • Formal approval from the appropriate dean or director must be obtained when the aggregate amount of outside employment or consulting exceeds eight hours in the calendar month. However, prior notice of outside employment or consulting that will amount to less than eight hours in a calendar month shall be expected.
  • Before faculty members and administrative/professional staff begin outside employment, they must obtain the written approval of the department head and dean or director on a Request for Outside Employment/Consulting for Faculty and Administrative/Professionals form found under Records at http://bf.memphis.edu/forms/hr.htm. If the department head does not approve the proposed employment, the employee may seek approval from the dean of the college or the appropriate vice president. In the unlikely event a dispute develops regarding approval, faculty may contact the Faculty Ombudsperson, and administrative/professionals may contact the Manager of Employee Relations in Human Resources for assistance in resolving the conflict. 
  • When seeking approval, submit separate forms for each type of service requiring a major commitment of time. A similar service rendered to several clients may be shown on a single form if each client requires only a minor commitment of time, as in many instances of professional consulting, private lessons, tax preparation, etc.
  • University property and facilities, e.g., offices, equipment, telephones, computers services, etc., may not be used in outside employment unless the use has been approved in advance. If such arrangements are approved, compensation to the University may be required at rates established by the University. University titles, offices, addresses, and telephone numbers may not be used in city directories for the purpose of publicizing non-University interests.
  • Consultants must make clear to any employer that the work to be performed has no official connections with the University. The University cannot assume any responsibility for private consulting services provided by members of its faculty or staff.
  • Outside employment that involves other agencies of Tennessee state government, including institutions of higher education, is subject to prior approval by both the president of The University of Memphis, or a designee, and the appropriate representative of the other agency. The two institutions will execute a Dual Services Agreement (see procedure above).
  • Outside employment must not result in any conflict of interest and must not interfere with any University teaching, research, service assignments, or administrative/professional duties. If outside employment conflicts with a faculty member's teaching schedule, specific arrangements for the classes must be approved by the department chair. Teaching, research, or service assignments should not be made principally for the convenience of faculty members wishing to engage in outside employment.
  • Administrative officers, including department chairs, may not employ through outside consulting or business activities, or be employed by, a faculty or staff member over whom they have direct supervision.

Outside Employment by Clerical/Support Staff:

Occasionally Clerical/Support staff have second jobs or engage in temporary work. Staff may engage in outside employment so long as doing so does not create a conflict of interest or interfere with their commitment to their job at The University of Memphis, which is considered to be the primary employer of full-time employees.

  • Formal approval to work a second job on a permanent or temporary basis is not required, but staff are expected to notify their supervisors in the form of a written memo that identifies the outside employer by name and describes the type of work and schedule requirements of the outside job.
  • Outside employment must not result in any conflict of interest with the UofM image or mission.
  • Outside employment must not interfere with the employee's ability to perform UofM job duties or meet work schedules.
  • University property and facilities, e.g., offices, equipment, telephones, computers, etc., may not be used in the course of outside employment.
  • If staff perform any work for another TBR institution or a Tennessee state agency, a Dual Services Agreement between the UofM and the other party is required.
  • Staff may not engage in outside employment with another staff member with whom there is a reporting relationship at the UofM. Example: A secretary may not perform outside employment as a bookkeeper at a consulting firm owned by her UofM supervisor.
  • Staff may not represent themselves in outside employment as having any official connection to the UofM.


Related Forms


Dual Services Contract

When The University of Memphis is the procuring agency and the other party is a State of Tennessee agency or another TBR institution, obtain the Dual Services Agreement form at:

When The University of Memphis is the vending agency and one of our faculty or staff is working for any other State of Tennessee agency or TBR institution, contact the Office of Research Support Services at The University of Memphis who will obtain the Dual Services Agreement from the other party.


Extra Compensation Form

Go to Records at http://bf.memphis.edu/forms/hr.htm


Request for Outside Employment/Consulting for Faculty and Administrative/Professional Staff

Under Records at http://bf.memphis.edu/forms/hr.htm.



FAQs


A full-time secretary is hired to perform work in addition to his full-time responsibilities. Does this policy apply?Not for Extra Compensation. Secretaries are nonexempt, hourly paid employees. Hours for all work performed for the University must be recorded on his time card, and overtime will be paid if applicable. If the work is Outside Employment, refer to that section on how to notify your supervisor of the outside work.

A faculty member requests Extra Compensation to direct a grant, for which she receives release time. Does this policy apply?No. This policy applies only to work completed in addition to the individual's full-time job responsibilities.

There used to be a 25% limit on what you could earn on Extra Compensation. Does that still apply?

Extra Compensation is no longer capped during the academic year, but the limits for Summer Compensation are still in effect.  See Summer Compensation Policy for those limits.


Will retirement credit be earned for all earnings from Extra Compensation?Not necessarily. State law limits the amount of earnings from Extra Compensation that can be reported to the Tennessee Consolidated Retirement System (TCRS) and the Optional Retirement Plan (ORP). The maximum amount that can be reported is 25% of annual base pay even though you may have earned more than that.


Links


TBR Policy 5:01:05:00, Outside Employment and Extra Compensation

http://www.tbr.state.tn.us/policies/default.aspx?id=1456

 

TBR Policy 5:02:04:10, Faculty Compensation During Summer Session and Inter-sessions

http://www.tbr.state.tn.us/policies/default.aspx?id=1488

 

 

TBR Guideline G-030, General Instructions on Form and Execution of Contracts (for Dual Services)

http://www.tbr.state.tn.us/policies/default.aspx?id=1722

  


Revision Dates


  UM1490 Rev.1 -- updated March 31, 2005


Subject Areas:

AcademicFinanceGeneralHuman ResourcesInformation TechnologyStudent Services/Affairs
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