The University of Memphis
Extra Compensation and Outside Employment
Full-time employment with The University of Memphis demands an individual's full-time professional expertise, commitment, and energies. The assignable load of an academic year/9-month term faculty member, in combination with teaching, research, administration, and service 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.
Extra compensation is generally not allowed by Federal grants; rather this is a rare and unusual occurrence.
To set forth the general provisions to cover the circumstances and limitations under which extra compensation and/or outside employment may be appropriate.
Payment by the University of Memphis for non-recurring work that is (1) outside the employee's normal work schedule and (2) 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.
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. This effort will be a component of the Effort Certification process of the agency/institution providing the employee.
Includes 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 his/her 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 is considered to be outside employment.
A second job in addition to one's regular employment.
Extra compensation charged to Federal grants is a rare and unusual occurrence and will only be allowed with prior approval from the sponsor.
Positions Not Eligible for Extra Compensation
The following types of employees and work are not considered to be eligible for 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:
Once the appropriate supervisor approves the extra service, faculty or staff shall initiate the Extra Compensation Authorization & Payment Request form.
|Extra Compensation Limitations|
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 no more than 25% will be credited to the Tennessee Consolidated Retirement System (TCRS) or Optional Retirement Plan (ORP), as applicable.
Employees may earn an unlimited amount of Extra Compensation; however, TCA § 49-5-410 limits full-time faculty work outside the University to 15 clock hours per week, not to exceed 400 clock hours out of any nine-month period, or no more than two credit courses per semester.
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
The University of Tennessee
If the other institution is the University of Tennessee (UT), no Dual Services Agreement is required if:
Otherwise, the faculty or staff member must ensure that a Dual Services Agreement is executed between the University of Memphis and UT.
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. See UM1692 Conflict of Interest Policy.
Prior to undertaking any outside employment, faculty and staff will notify his/her 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:
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 his/her commitment to his/her job at the University of Memphis, which is considered to be the primary employer of full-time employees.
|Roles and Responsibilities|
Principal Investigator/Program Director/Payee
Research Support Services
Grants and Contracts Accounting
|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 Authorization and Payment Request Form|
|Request for Outside Employment/Consulting for Faculty and Administrative/Professional Staff|
|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.
|Is there a 25% limit on what you can earn in Extra Compensation?|
The amount of Extra Compensation is no longer capped during the academic year, but the limits for Summer Compensation are still in effect. SeeUM1493 Summer Compensation for those limits. However, TCA § 49-5-410 limits full-time faculty “moonlighting” to 15 clock hours per week, not to exceed 400 clock hours out of any nine-month period, or no more than two credit courses per semester. The amount paid per credit hour is limited to a maximum of $675 per credit hour.
|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.
|TBR Policy 5:01:05:00, Outside Employment and Extra Compensation|
|TBR Policy 5:02:04:10, Faculty Compensation During Summer Session and Inter-sessions|
|TBR Guideline G-030, General Instructions on Form and Execution of Contracts (for Dual Services)|
|UM Conflict of Interest Policy 1692|
| ||UM1490 - Issued: June 28, 2011|
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