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Employee Summer Salary and Supplemental Compensation

Approved by: President
Responsible Officer: VP FOR BUSINESS AND ADMINISTRATIVE SERVICES
Responsible Office: BUSINESS AND ADMINISTRATIVE SERVICES
Originally Issued: 12/04/2012
Last Revision: 05/24/2021
Category: fINANCE, BUSINESS, AND AUXILIARY SERVICES
Related Policy
SDBOR Effort Certification

I. REASON FOR THIS POLICY

This policy defines the criteria by which regular, full-time faculty, and non-faculty exempt (NFE) are eligible to receive supplemental compensation beyond their salary. Faculty and/or NFE exempt employees may be requested to provide services for other departments or organizations within Dakota State University, to perform duties that are substantially outside the scope of the individual’s position, and/or to teach courses above and beyond the normal workload requirement (overload). In such instances, the individual may be eligible to receive supplemental compensation for those duties. Any employee on a less than 12-month contract may also be eligible to receive payment for work completed during the time outside their contract period (summer). This policy is designed to be in compliance with relevant federal regulations, including but not limited to 2CFR 200.

II. DEFINITIONS

  1. Certification. The act of attesting to the effort expended.
  2. Effort Certification Report. A report that any employee expending effort on a sponsored project must complete to be in compliance with federal regulations.
  3. Effort Reporting. A federally mandated process by which salary charged to an externally sponsored project (grant or contract) is certified as being reasonable in relation to the effort expended on the project, expressed as a percentage of the individual’s total pay.
  4. Extra Service Pay: This is short-term, typically one-time payments, for special project work beyond the scope of the assignment for the position.
  5. Home Department. The college or department an employee is contracted to work in.
  6. Institutional Base Salary. The current annual salary of the employee as it appears on the contract received and accepted by the employee.
  7. Non-Faculty Exempt Employee (NFE). An employee classified as non-faculty and exempt from overtime.
  8. Non-Faculty Non-Exempt Employee. An employee that is not classified exempt from overtime.
  9. Short-term: Less than one-semester in length.
  10. Summer/Summer Period. The period of time outside of the employee’s contracted dates of employment.
  11. Summer Salary. Any earnings paid through Dakota State University for work performed by a less than-12-month faculty/NFE during the period of time in which they are not under contract. Example: A full-time faculty member is on a 9-month faculty contract during the period of August 22 – May 21. The faculty member would be eligible to receive summer salary for work performed for DSU during the period of May 22 through August 21.
  12. Supplemental Pay. Compensation in excess of a full-time faculty or NFE employee’s annual contract salary for temporary increases in responsibility and/or for extra duties beyond the scope of the employee’s contract/appointment during the contract period. This includes but is not limited to overload pay for instruction, extra service pay for additional duties and pay for work on externally sponsored projects.

III. STATEMENT OF POLICY

    1. Faculty/NFE Suplemental Compensation
      1. Sponsored Projects Eligibility. In order to be eligible to charge supplemental pay for a sponsored project, the full-time faculty member or NFE employee’s work performed shall meet all of the following criteria:
        1. Be across Department/College lines.
        2. Be outside the scope of the employee’s regular appointment.
        3. Be short term.
        4. Be specified in the sponsored agreement or approved in writing by an authorized representative of the sponsoring agency (for federal projects, the sponsoring agency’s Grants Management Officer).
        5. Not conflict with the employee’s regular duties and assignments at DSU.
      2. Limitations During Contract Period
        1. The maximum supplemental pay that may be earned and received for sponsored projects during their contract period cannot exceed 25% of his or her institutional base salary for that contract period.
        2. The limit is inclusive of overload teaching assignments, temporary research projects, and any other temporary services provided to the university and for which additional compensation is given, when those temporary duties are outside the scope of the individual’s position.
    2. Faculty/NFE Supplemental Pay: Summer Salary.
      1. Eligibility. Faculty or NFE whose contracts are less than 12 months are eligible to receive pay for services provided to DSU during their “off contract” period (commonly referred to as summer salary).
      2. Limitations
        1. During the summer, an employee may earn and be paid no more than the equivalent per pay period rate of the institutional base salary for the time outside of the employee’s contract from all sources of funds.
        2. Payment and effort reporting for the summer period shall be consistent with DSU’s faculty workload guidelines if the employee is faculty. It shall also be consistent with the policies of the funding agency, if any part of summer pay is from a sponsored project. Some funding agencies may impose more restrictive guidelines regarding summer pay; the awarding documents and funding agency regulations are the ultimate authority on allowable expenses.
        3. Employees are limited to 90% effort on sponsored grants/contract during the summer period. This limit, based on federal audit findings, reserves time during the period for other activities such as teaching, service, proposal writing/submitting, or time off for personal activities. Effort may need to be further limited, depending on a faculty member’s summer responsibilities beyond the activities funded by the grant/contract. However, a faculty member is eligible to receive payment for DSU-sponsored activities, such as teaching, during that same period, as long as the payment for those DSU-sponsored activities plus sponsored grants/contract effort does not exceed 100%.
        4. Payment for summer research or other work on sponsored grants/contracts and payment for summer DSU-sponsored activities shall be made in the pay period for which the effort is expended.
        5. Effort committed and expended on summer sponsored projects shall need to be certified per BOR Policy 5:24 and applicable federal regulations.
        6. University-sponsored activities plus sponsored grants/contract effort does not exceed 100%.
    3. Exclusions
      1. This policy excludes non-exempt non-faculty employees. Non-exempt employees (CSA -not exempt from overtime) are not generally eligible for Supplemental Compensation as they receive overtime pay or compensatory time off for additional work performed.
      2. This policy excludes part-time faculty.
      3. Faculty and NFE employees cannot assign supplemental or summer pay to themselves. Any such instances must be approved by the immediate supervisor.
    4. Exceptions
      • Full-Time Faculty
        Any exceptions for full-time faculty to go above the maximum supplemental pay limit during the contract period (25% of IBS) shall be requested in writing by the supervising Dean, authorized by the Provost, and approved by the Cabinet Executive Committee.
      • NFE Exempt Staff
        Any exceptions to the supplemental pay limit during the contract period (25% of IBS) shall be requested by the supervisor, authorized by the appropriate Vice President, and approved by the Cabinet Executive Committee.

IV. PROCEDURES (MAJOR)

Supplemental Pay Approval
  1. The employee eligible under this policy for the performance of any work outside the individual’s home college or department shall obtain written approval from his or her direct supervisor prior to work commencing. Prior to approval, the supervisor shall develop a plan to ensure the outside work does not negatively impact other work.
  2. If paid by a sponsored project, consistent with 2 CFR 220, all work committed to under a sponsored project should be, if at all possible, completed within an employee’s normal workload.
  3. Supplemental pay approval must be verified within the sponsored budget and/or approved, in writing, by the sponsoring agency’s grants management officer.
  4. Contractual or extra service work that is short-term in nature (i.e., less than a semester in length) may be paid in the month subsequent to the work assuming all appropriate forms have been completed.
  5. Instructional overload or supplemental work that does not meet the short-term definition will be calculated in February and funds disbursed according to university practice.

V. RELATED DOCUMENTS, FORMS AND TOOLS

Dakota State University Workload Operating Guidelines: Contact Business and Administrative Services (605-256-5127), stacy.krusemark@dsu.edu.

VI. POLICY HISTORY

ORIGINALLY ISSUED: 12/04/2012
LAST REVISION: 05/24/2021