Overload Compensation (VI.C.4)

Volume ­­VI: Human Resources
Chapter C: Compensation
Responsible Executive: Vice President for Human Resources
Responsible Office: Office of the Vice President for Human Resources
Date Issued: January 1, 2019
Date Last Revised: N/A

TABLE OF CONTENTS

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected by This Policy
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

CONTACTS

STATEMENT OF POLICY

On occasion, faculty and staff are asked to assume additional assignments that are reasonable extensions of their normal job duties. Compensation in addition to the normal salary and wages is not provided on these occasions. Unusual situations may arise that require faculty and staff to perform beyond the scope of their primary employment understanding. In these situations, Overload Compensation may be granted in accordance with this policy.

There are two instances in which it is appropriate to utilize Overload Compensation.

1. Effort exceeds normal load, non-emergency: The employee is assigned to and participates in an assigned activity that is clearly beyond the primary employment expectations, and the employee’s appointment for the activity represents the most economical and/or strategic approach to meet the unit’s need.
2. Effort exceeds normal load, emergency: The employee is assigned to and participates in an assigned activity that is clearly beyond the primary employment expectations, and alternative arrangements are not feasible. Every reasonable effort must be made to incorporate the activity into the regular duties and responsibilities of the unit before the use of Overload Compensation is recommended. Even after Overload Compensation is approved, the unit is expected to bring the activity into the regular pattern of assigned duties. 

Payment of Overload Compensation must represent the best use of University resources, regardless of the funding source. Overload Compensation may not be used for sponsored project effort. Overload Compensation may not exceed 20 percent of the salary for fiscal-year employees or the equivalent amount of 25 percent of the base salary for academic-year employees.

Approval for Overload Compensation must be obtained in advance of the activity as outlined below.

1. Compensation equal to or less than $2,500: Must have advance approval of the department head and dean or director of the employee’s home department and, if different, the same approvals of the appointing department.
2. Compensation greater than $2,500: Must have the advance approval as noted above, and the approval of the Provost (academic units on the West Lafayette campus), vice president or vice provost (non-academic units on the West Lafayette campus), or vice chancellor (Fort Wayne and Northwest campus units), or their designated representative.

REASON FOR THIS POLICY

Overload Compensation must be used in a manner that serves the mission of the University while demonstrating fiscal responsibility. This policy outlines the limits and responsibilities put in place to ensure appropriate use of Overload Compensation.

INDIVIDUALS AND ENTITIES AFFECTED BY THIS POLICY

All units of the University that propose the use of Overload Compensation for their activities, and all employees of the University who are approved to receive Overload Compensation.

EXCLUSIONS

Employees who are subject to the overtime provisions of the Fair Labor Standards Act (FLSA) are not eligible for Overload Compensation.

RESPONSIBILITIES

Supervisors, Deans and Directors

• With the advice of Human Resources and in accordance with federal and state law and relevant University policies, define normal, full-effort workloads for faculty and staff. This includes defining departmental and individual goals that accurately reflect the current expectations for promotion and satisfactory job performance.
• Evaluate Overload Compensation proposals to ensure they represent the best use of University resources prior to approving ($2,500 or less) or submitting for approval (over $2,500).

Provost, Vice Presidents, Vice Provosts, and Vice Chancellors (and Designated Representatives)

• Review requests for Overload Compensation and make determinations that are in accordance with this policy.
• Monitor the use of Overload Compensation in units under their leadership and oversight for compliance with this policy.

Business Managers

• Maintain records of Overload Compensation payments and monitor compliance with the percentage limits and approval requirements set by this policy.

Human Resources

• Advise supervisors, deans and directors in defining normal, full-effort workloads for faculty and staff within their units.
• Advise the Provost, vice presidents, vice provosts and vice chancellors in monitoring compliance with this policy.

Payroll Department

• Provide an annual report of Overload Compensation by employee and unit to the Provost (for academic units on the West Lafayette campus), vice presidents and vice provosts (for non-academic units on the West Lafayette campus), and vice chancellors (for Fort Wayne and Northwest campus units), or their designated representatives.

DEFINITIONS

All defined terms are capitalized throughout the document. Refer to the Policy Glossary for additional defined terms.

Overload Compensation
Payment to a University employee for participating in or completing an assigned activity that requires effort in excess of a normal full-time work effort, as defined by their supervisor and dean or director in accordance with this policy. Overload Compensation is not used to calculate University retirement contributions.

RELATED DOCUMENTS, FORMS AND TOOLS

• Academic-Year Employment (VI.F.12)
• Effort Reporting (II.C.1)

WEBSITE ADDRESS FOR THIS POLICY

 www.purdue.edu/policies/human-resources/vic4.html

HISTORY AND UPDATES

January 1, 2019: This policy supersedes Executive Memorandum No. C-40, dated January 15, 1996. More clarification about the appropriate use of Overload Compensation was added, along with reporting and monitoring channels. Summer intensive instruction as a defined term/concept was removed.

APPENDIX

There are no appendices to this policy.