Human Resources Policies
HR90 Extra Compensation for Exempt Staff Employees
Subject Matter Expert:
Policy Steward:Vice President for Human Resources>
POLICY'S INITIAL DATE: September 18, 1990
THIS VERSION APPROVED: March 9, 2021
To outline the procedure and establish guidelines for determining circumstances under which extra compensation is payable to exempt staff employees for extra noncontinuous assignments.
NOTE: This policy is not utilized for determining compensation when an individual is appointed in an "acting" capacity.
An exempt staff employee, by nature of his or her position, is considered to be available for work assignments without additional remuneration at times other than his or her regularly scheduled hours and appointments. However, there are circumstances under which it is in the University's interest to utilize such personnel for extra assignments with additional remuneration.
It is not permissible to use Supplemental II compensation to increase an exempt employee's annual salary beyond the amount approved by Penn State Human Resources at the time of hire, or to pay Supplemental II compensation to augment general salary increases in a particular year.
The determination of those unusual circumstances in which extra assignments and compensation are appropriate will be the responsibility of the staff member's budget executive in consultation with Penn State Human Resources. If there is a need for longer service, beyond a temporary need, this should be reflected in changes to permanent budgets and/or reallocations of staff time and effort. In no case should a budget executive approve supplemental compensation for work that is part of the exempt employee's job responsibilities.
Each of the following general guidelines will apply:
- The duties to be performed should be clearly differentiated from the types of duties the individual normally performs.
- Normally, the additional duties should not be performed on a continuing basis.
- Normally, the work should not be performed during the regular work schedule of the individual, nor should it in any way impair the ability of the staff member to carry out his or her regular responsibilities.
- If the additional duties performed are teaching duties, no more than two 3-credit courses (or their equivalent) should be taught in a fiscal year.
- Normally, the work should not be performed for the budget executive for whom the staff member regularly works.
- A staff member receiving extra compensation from another University fiscal unit must have prior approval for the participation and the amount of extra compensation from the staff member's budget executive. In no case should the Supplemental I compensation being paid in total for a fiscal year exceed an amount that would extend a contract beyond 48 weeks (paid at the weekly rate of the appointment). Supplemental II compensation being paid in total for a fiscal year shall not exceed 20% of the exempt employee's annualized salary, unless approved in advance by the staff member's budget executive.
For all extra assignments, an electronic Supplementary Compensation form (SUPP) is used to initiate and process compensation payments for Supplementary I and Supplementary II appointments. The SUPP form must be appropriately routed to the employee's home budget area for review and approval.
HRG02 - Alternate Work Arrangements
Date Approved:June 26, 2020>
Date Published:June 26, 2020>