I. Purpose & Scope
A. Overview: This policy describes how an employee may temporarily receive a rate of compensation which is higher than the base salary for his/her regular position for temporarily being assigned additional higher-level responsibilities.
- Application: This policy applies to all college employees except (a) those in the faculty bargaining unit or (b) as otherwise provided in a collective bargaining agreement.
- Exceptions: While this policy is intended to encourage consistent practices, the President may authorize variation in a particular situation when deemed necessary. This policy does not provide any contractual rights.
C. Relationship to base pay: The higher-services compensation under this policy is temporary and does not change the subject employee’s base pay for his/her current regular position.
D. Relationship to “overtime” compensation:
- General overtime rules: Employees in many college positions are “overtime-eligible” and legally entitled to receive compensation for overtime, i.e., hours worked in excess of forty per workweek. Such overtime compensation, generally at the rate of 150% of salary for the excess hours, may take the form of either monetary payment or compensatory time. No employee who is thus overtime-eligible may work such excess hours without prior supervisor approval. On the other hand, some college employees are determined by the Human Resources office to be “overtime-exempt”, i.e., not entitled to such extra compensation under the applicable law. Generally, these overtime-exempt positions involve higher-level responsibilities and exercise of more managerial discretion.
- Overtime and this policy: This policy mostly does not address overtime computation and compensation. Overtime should occur for overtime- eligible employees only in exceptional circumstances, so a supervisor should consult with her/his vice president before authorizing overtime for additional responsibilities.
For purposes of this policy:
- “Additional higher-level responsibilities” means temporary responsibilities which (a) are those of a higher-level position, as shown in a current job description or other documentation, (b) are not included in an updated job description for the subject employee’s current regular position, and (c) constitute, or are reasonably expected to constitute, more than one-fifth (20%) of his/her total responsibilities.
- “Higher level position” means a position which is more highly >compensated than the regular position which is currently held by the subject employee.
- “President” means the college President or, if so designated by the President for this purpose, the college’s chief Human Resources officer.
- “Subject employee” means the employee who is to receive the additional compensation.
- “Temporarily” and “temporary” mean for a period which is reasonably expected to be more than three weeks but less than a year from the effective date of the additional compensation.
- “Temporary college need” means a temporary and limited need for services which is not reasonably expected to require filling of a permanent position.
- “Temporary position need” means that a higher-level position is or will be temporarily vacant because (a) of the absence of the holder of that position or (b) the college has not hired anyone to fill it permanently.
III. Permissible Additional Compensation
A. Eligibility: When a subject employee is temporarily assigned additional higher-level responsibilities due to a temporary college need or a temporary position need, the college may temporarily pay higher-services compensation which is more than the base salary for her/his regular position.
B. Determination of amount:
- The higher-services compensation will ordinarily be a percentage of the difference between (a) either the previous compensation for the higher- level position or the minimum compensation which is expected to be paid for the services required to meet the temporary college need and (b) the lesser compensation currently received by the subject employee for his/her regular position.
- The percentage will equate to the quotient which results from dividing (a) the number of hours which are devoted to, or expected to be devoted to, the additional higher-level responsibilities by (b) the number of total hours in the employee’s workweek.
C. Limitations: The higher-services compensation is prorated for the period of the additional responsibilities. The total higher rate of compensation may not exceed the rate of (1) the compensation for the position with the temporary position need or (2) the compensation for the position which is closest to meeting the temporary college need.
D. Examples: These examples assume a regular annual rate of $40,000 and a temporary annual rate of $50,000, producing a difference (B.1 above) of $10,000:
Employee works 40 hours per week, devoting 8 hours (20%, the minimum under this policy) to additional higher-level responsibilities: .20 x $10,000 = $2,000 higher-services compensation; $40,000 + $2,000 = $42,000 temporary annual compensation rate.
Employee works 40 hours per week, devoting 30 hours (75%) to additional higher-level responsibilities: .75 x $10,000 = $7,500 higher- services compensation; $40,000 + $7,500 = $47,500 temporary annual compensation rate.
Employee is overtime-exempt and works a total of 50 hours per week, devoting 37 ½ hours (75%) to additional higher-level responsibilities: .75 x $10,000 = $7,500 higher-services compensation; $40,000 + $7,500 = $47,500 temporary annual compensation rate. (The employee is overtime-exempt; there is no increase over Example 2 for the 10 hours over 40.)
IV. When Additional Compensation Is Not Permitted
Higher-services compensation under this policy is not appropriate if the additional higher-level responsibilities are not temporary or when:
- An employee is performing duties which are already included in his/her job description and/or are not yet included but are expected to be permanent. Any discrepancy in the latter situation should be addressed by updating the job description and determining the proper permanent compensation for the employee’s position.
- An employee temporarily assumes full responsibility for an unoccupied position as the interim holder, instead of her/his regular position. If the employee is not performing significant responsibilities of that regular position, s/he should temporarily be compensated at the rate for the temporary position instead of the rate for the regular position.
- A supervisor temporarily assumes responsibilities for a subordinate employee (one who reports to the supervisor).
- An employee temporarily assumes responsibilities of a position that is either paid equally or paid less than his/her regular position. Any increased workload in these situations should be addressed by workload redistribution and/or hiring of temporary staff. This policy never authorizes an employee receiving less than her/his regular compensation.
V. Process for Determining Additional Compensation
A. When it appears that higher-services compensation under this policy may be appropriate, the supervisor and/or vice president should review the relevant job descriptions and consult with the subject employee. Through such consultation, the vice president should determine the number of hours which are devoted to, or expected to be devoted to, the additional higher-level responsibilities, as well as the total number of hours in the employee’s workweek.
B. The vice president must submit a Stipend Request Form to the chief Human Resources officer, obtain a recommendation from that officer, and then receive Cabinet approval before determining or committing to pay any additional compensation. The Stipend Request Form, and/or an attachment, must include:
- Copies of the relevant current job description(s);
- A listing of the additional higher-level responsibilities;
- The number of hours which are devoted to, or expected to be devoted to, the additional higher-level responsibilities, plus the total number of hours in the employee’s workweek;
- The time period during which the subject employee is expected to perform the additional higher-level responsibilities (including beginning and ending dates);
- Explanation of the need for higher-services compensation (as opposed to permanently filling the position or other alternatives); and
- The plan for ending the temporary responsibilities.