Fayetteville Policies and Procedures  407.0 

Extra Compensation Policy

Purpose 

This policy implements UA Systemwide Policies and Procedures 440.2, relating to extra compensation for full-time faculty and staff performing additional tasks over and above regularly assigned duties, with the following interpretations and applications. This policy outlines eligibility for extra compensation, the process for requesting and approving extra compensation, and maximum permissible amounts. Please see  UASP 440.2 to ensure applicable requirements are met.  

Eligibility and Restrictions 
  1. Employees eligible for extra compensation under this policy are limited to faculty and exempt (not eligible for overtime) employees, excluding those with the title of dean, vice chancellor, or chancellor. 
  2. Employees must be appointed 100% during the activity period to earn extra compensation. 
  3. Employees must have a rating of Satisfactory or better and no disciplinary actions in the last year.  
  4. No employee is eligible for extra compensation, unless certification is obtained from the appropriate dean or unit head that the employee is working full-time, or 100%, during the activity period for which extra compensation is being recommended, and that work for extra compensation shall not interfere with regular duties.  
  5. Unless specifically authorized by the dean or unit head, duties must be performed outside the normal work schedule, or annual leave must be taken for preparing and conducting the activities. 
  6. Approval must be obtained prior to the start of the activity. Approval of extra compensation must be obtained through the Workday business process, which routes the request(s) to the appropriate approvers based on transaction details (e.g., funding source, employee type, and costing requirements). Approvers may include functional roles such as budget, compensation, grant, project, or cost center representatives, as applicable. In any event, all approvals shall include appropriate officials in supervisory, (including department head), human resources, and budgetary roles.  
  7. A tenured or tenure-track faculty member is limited to teaching one or more credit courses up to three credit hours in total or the equivalent time commitment per term (e.g., one course of three credit hours or three courses of one credit hour). Full-time, non-tenure-track faculty are limited to teaching up to six credit hours or the equivalent time-commitment per term for extra compensation. Subject to these maximum amounts, the number of credit hours allowed is subject to the supervisor’s approval, considering such factors as employee availability and impact on the unit's operations. 
  8. An employee is limited to one activity not involving credit-hour teaching at a time for extra compensation. A non-credit activity and teaching for extra compensation may be done in the same term. 
  9. Per UASP 440.2, extra compensation will not be paid: 1) for speeches, public appearances, etc., which are civic, public relations, or development activities, or 2) for such scholarly activities as research, research consultation and collaboration, or creative works considered part of normal faculty duties. 
  10. Neither state grant funds nor federal funds may be used to pay extra compensation unless approved by the granting agency. To request approval, contact the Office of Sponsored Programs (OSP). 
  11. Per UASP 440.2, unless authorized by the President, senior administrators, as defined by the Chancellor, shall not be eligible for extra compensation for teaching a class or performing other duties for the University. 
Process for Requests and Approval; Maximum Amounts 
  1. Human Resources shall administer the extra compensation process unless the Chancellor has approved an alternate administrative path. In any case, all other aspects (including approval requirements) of this policy apply. 
  2. Requests for extra compensation shall be submitted through Workday. 
  3. Extra compensation paid to benefits-eligible employees on their primary job will have both employee and employer retirement contributions deducted. Extra compensation paid for a secondary job will not have retirement contributions deducted. 
  4. Payment may be issued as the work is completed, with the final payment made upon full completion of all tasks. All work must be completed and approved before any final payment is issued. 
  5. An employee's total compensation, for a year or for a month, including extra compensation, shall not exceed the line-item maximum (LIM) salary for the position, subject to the exceptions set forth in Ark. Code Ann. § 6-63-303 (for overload teaching), § 6-63-309, and § 6-64-305, and subject to the provision below regarding private funds.  
    1. Further, per UASP 440.2, a change of position shall not be made in order to pay an individual above the employee’s existing line-item maximum. Unless an exception under state law applies, to the extent an employee exceeds 125% of annual LIM with extra compensation, then the compensation must be recommended by the appropriate department and paid through private funds and the request for exemption must be approved by the Vice Chancellor for Academic Affairs, the Chancellor, the President of the University of Arkansas System and the Board of Trustees. 
  6. Instruction for intersession courses is subject to Academic Policy 1405.20. 
  7. Stipends for extra compensation must be authorized to be paid at the regular payroll period for the time period in which it is earned. 

Questions regarding this policy should be directed to the Provost’s Office or the Classification/Compensation Department in Human Resources, as applicable). 

Revised July 1, 2026
Revised July 1, 2015
Reformatted for Web April 28, 2014
Revised April 5, 2010
Revised August 25, 2005
August 1, 1996