Additional Compensation for EPA Employees
REG 05.20.14
Authority: Vice Chancellor for Finance and Business; Provost and Executive Vice Chancellor
History: First Issued: February 21, 2001. Last Revised: November 8, 2005. Additional History Information.
Related Policies:
NCSU REG05.20.35 - Summer Earnings and Summer Sessions Compensation
Additional References:
Office of Management and Budget Circular No. A-21 Section J.10
Guidelines for Transferring Materials to University Archives - UNC Office of the President, NC Department of Cultural Resources and NC State University Joint Directive
EPA Additional Pay Form
External Professional Activities for Pay
Contact Info: Director for Employment and Compensation, Human Resources, (919-515-4288), or Vice Provost for Faculty Affairs (919-513-7741), Provost Office (919-515-9770)
1. Introduction
NC State University (hereinafter "NC State") recognizes that certain circumstances may exist to justify the award of additional compensation to EPA employees (note: EPA employees are those positions that are not subject to the State Personnel Act and are classified in one of four categories: 1) EPA Professional, 2) Faculty, 3) Senior Academic and Administrative Officer Tier-I, or 4) Senior Academic and Administrative Officer Tier-II). The objective of this regulation is to set forth the conditions under which a supervisor may approve additional compensation for EPA employees and the approval request process that must be followed.
2. Scope
This regulation applies to additional compensation paid to EPA employees of NC State from all NC State sources. It does not cover any compensation received by the employee that is benefits-related (i.e. annual leave payout, car allowances, etc.). Furthermore, it does not cover additional compensation provided to NC State Athletic Department Head Coaches and their EPA staff related to Conference Championships (Atlantic Coast Conference, Eastern Atlantic Gymnastic League and the National Collegiate Athletic Association) or post-season invitations. Finally, this regulation does not apply to External Professional Activities for Pay.
3. Definitions
3.1 Compensation Within the Employee's Contract/Appointment Period: An EPA employee's regular annual salary represents the compensation paid to the employee during the period of time the employee is under contract/appointment to NC State for duties to be performed within the scope of the contract/appointment. This is the regular annual salary that is stated in an employee's letter of offer.
3.2 Additional Compensation: Compensation paid to an employee by the university from NC State sources in excess of the employee's regular annual salary for the performance of duties beyond the scope of the employee's contract/appointment. Such compensation may be within or outside of the employee's contract/appointment period.
3.2.1 Additional Compensation Within the Employee's Contract/Appointment Period: Compensation received by an EPA employee from NC State sources that is received within the stated contract period and in addition to the employee's regular annual salary as stated in the employee's letter of offer.
3.2.2 Additional Compensation Outside of an Employee's Contract/Appointment Period: Compensation received by an EPA employee from NC State sources that is received outside of the stated contract period and in addition to the employee's regular annual salary as stated in the employee's letter of offer (note: there is no outside of contract period for 12-month employees).
4. Approval Request Process
4.1 Requests for additional compensation must be approved in writing prior to the time the EPA employee is to begin performing the additional duties. The request is approved by:
4.1.1 the unit head where the duties are to be performed,
4.1.2 the unit head where the employee's regular appointment lies, and
4.1.3 the dean/director or designee where the employee's regular appointment lies.
4.2 If the percentage of additional compensation or cumulative additional compensation is estimated to exceed specified limits as identified in section 5., prior approval of the relevant Executive Officer or Dean for faculty and academic EPA Professionals is also required.
4.3 EPA employees with external salary support from contract and grant funds may receive additional compensation during the employee's contract/appointment period if prior approval has been obtained from the sponsoring agency (reference Office of Management and Budget Circular No. A-21 Section J.8.d (1)).
5. Limits on Additional Compensation (Maximum Amounts Allowable)
Limits on additional compensation represent the maximum amount an employee may be paid from NC State sources and are based on annual salary and contract/appointment. The limit differs depending on whether the employee receives the additional compensation within or outside of their contract/appointment period (note: there is no outside of contract period for 12-month employees).
5.1 Limits on Additional Compensation Paid Within the Contract/Appointment Period
The maximum additional compensation that may be received during an employee's contract/appointment period is limited to 20% of the salary amount earned during the specified period unless appropriate Executive Officer or Dean for faculty and academic EPA Professionals approval is obtained.
5.2 Limits on Additional Compensation Paid Outside of Contract/Appointment Period
Total additional compensation that may be received outside of an employee's contract/appointment, (i.e. three months for a 9-month employee), would be equal to the annual salary divided by the number of contract/appointment months multiplied by the number of non-contract months. For example, a 9-month EPA employee with a full-time annual salary of $36,000 would have a summer salary cap of $12,000 ($36,000/9 = $4,000 x 3 = $12,000). This section does not apply to 12-month employees, since all twelve months of the fiscal year fall within the contract/appointment period. For additional information on limits on additional compensation paid outside of contract/appointment period reference REG05.20.35 Summer Earnings and Summer Sessions Compensation.
6. Record Retention
Original supporting documentation for the additional compensation must be retained in the hiring department's file for a period of five years from the additional compensation payment date. If documentation is in support of expenditures charged to a contract and grant account, the documentation must be retained for 5 years after termination of the contract and grant.
