Additional Pay (formerly Extra Compensation)
Additional pay includes allowances, one-time payments, period activity pay, and temporary increases to hourly rates/salaries.
Because it is not always clear which additional pay plan should be added to a staff member’s compensation package, and when, Business Partners should contact Human Resources for guidance before submitting any requests in Workday.
Schools and Centers may use their additional pay programs, balancing the ability to fund programs with the needs to recognize productive employee behavior and to ensure that staff members are equitably rewarded. The addition of certain compensation plans to employees on salary or hourly compensation plans requires consultation with, and approval by, Human Resources before work begins and before any additional pay amount is communicated to a staff member.
With few exceptions, additional pay is not part of a staff member’s base salary/hourly compensation plan; it is a supplement to that plan and therefore is not included in the University’s Retirement Savings Plans. Additional pay in the form of an allowance for a monthly-paid acting rate, or a one-time payment for a weekly-paid acting rate, is part of base pay and, therefore, is included in the University’s Retirement Savings Plans.
Additional pay may not be used to compensate weekly-paid staff members on hourly compensation plans (i.e., staff members in non-exempt positions) in lieu of overtime pay for all time worked over 40 hours in a workweek. Staff members in non-exempt positions are covered by the pay provisions of the federal Fair Labor Standards Act (FLSA), which require that all non-discretionary pay be included in the computation of overtime. Staff members in non-exempt positions must be paid at one and one-half times their regular rates of pay for all time worked over 40 hours in a workweek (See Overtime Pay and/or Compensatory Time - Policy 302). Monthly-paid staff members on salary compensation plans (i.e., staff members in exempt positions) are not eligible for overtime pay.
305.1 ALLOWANCE (formerly Monthly-Paid Acting Rate) and ONE-TIME PAYMENT (formerly Weekly-Paid Acting Rate)
Additional pay may be awarded to a staff member who is temporarily performing/has temporarily assumed major responsibility for the duties of a vacant position in a grade profile that is higher than that of his/her current position. Such assumed responsibility
is usually in addition to his/her primary job responsibilities.
The additional pay amount is determined by Human Resources in accordance with the extra duties performed; however, it may not exceed 10% of the staff member’s current annual salary/hourly rate. Exceptions require review and approval by the Executive Director of Compensation and the Vice President of Human Resources.
Additional pay ends when the vacant position is filled or when the staff member is no longer performing the additional responsibilities. The additional pay period should be no longer than six months, and may not extend beyond the end of the current fiscal year. Business Partners should contact Human Resources if they need to extend the additional pay period into the following fiscal year.
(Former) Monthly-Paid Acting Rate:
The Workday business process is Request Compensation Change à Allowance à Administrative Allowance.
For example: A monthly-paid staff member on a salary compensation plan (i.e., in an exempt position) will perform his/her supervisor's duties in addition to his/her own while the supervisor is on leave for three months, and will be paid an extra 10% of his/her salary (entered into Workday as a flat dollar amount) each month for the next three months.
(Former) Weekly-Paid Acting Rate:
The Workday business process is Request One-Time Payment à Acting Rate Non-Exempt. A copy of the One-time Payment-Acting Rate memo should be attached to the request in Workday.
Such additional pay is included in the calculation of the regular rate of pay for overtime purposes.
For example: A weekly-paid staff member on an hourly compensation plan (i.e., in a non-exempt position) will perform his/her supervisor's duties in addition to his/her own while the supervisor is on leave for three months. He/she will be paid an additional flat dollar amount each week.
A compensation plan that is paid as a flat dollar amount; it has a start date and an end date.
The Workday business process is Request Compensation Change à Allowance.
For example: A staff member receives a communication device (cell phone) allowance each month.
305.3 ONE-TIME PAYMENT (includes former Award, Allowance, and On-Call Pay)
A compensation plan that provides an ad-hoc one-time flat-dollar-amount payment.
The Workday business process is Request a One-Time Payment.
For example awards or reimbursement of expenses for same-day meals and travel or required education. Documentation, such as receipts or bills, is required to substantiate expenses.
One-time payments are also provided for the completion of work that is outside the scope of the staff member’s job profile, is not performed on a continuing basis or during a staff member’s regular work schedule; and, typically, is not for the staff member’s supervisor.
One-time payments are also provided for on-call pay for staff members who are required to be available for emergencies, and who must respond at unusual hours outside of their regularly-scheduled work hours. All on-call pay plan designs and rates must be reviewed and approved by Human Resources before being implemented and/or communicated to the staff member(s).
An incentive award is a type of one-time payment that is made in accordance with a formal, documented, and approved Incentive Award Plan. The University does not typically have a practice of awarding bonuses or incentives to staff members. No new incentive plans are being established.
305.4 PERIOD ACTIVITY PAY
Allows an existing staff member to be paid for additional teaching or research for a fixed-term time period.
The Workday business process is Period Activity Pay à Staff Instruction.
For example: A monthly-paid employee in a staff position has an additional part-time semester-long academic appointment as a Lecturer in a different supervisory organization.
305.5 FACULTY AND WORK-STUDY STUDENTS/STUDENT WORKERS
Requests for additional pay for faculty and student workers should be entered into Workday following the guidelines provided above. Faculty additional pay will be routed through the Provost’s Office, and student worker additional pay will be routed through Human Resources.
305.6 UNIVERSITY STAFF WHO ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS
University staff members covered by collective bargaining agreements should refer to the appropriate articles in their contracts.
Policy Number: 305
Effective Date: 08/25/2016
Last Reviewed: 06/12/2019
Revised Date: 10/09/2019
Supersedes Policy Number(s): 305 (09/01/1992, 04/01/2001, 01/24/2008, 02/21/2011, 08/02/2012, 07/25/2016, 08/25/2016
Applicability: All Regular Staff Members
Cross-reference: Overtime Pay and/or Compensatory Time- Policy 302, Dual Employment - Policy 308