Fayetteville Policies and Procedures  407.0 

Extra Compensation Policy

This policy implements Universitywide Administrative Memorandum 440.2 with the following interpretations and applications:

1. Employees not eligible for extra compensation are classified employees eligible for overtime and non-classified employees with the title of dean, vice chancellor or chancellor.
2. No employee working less than 100% during the activity period may earn extra compensation.
3. No employee is eligible for extra compensation, unless these duties are performed outside the normal work schedule, annual leave is taken for preparing and conducting said activities or certification is obtained from the appropriate dean or unit head that the work for extra compensation shall not interfere with regular duties.
4. Approval for extra compensation must be obtained from, and the Extra Compensation Form signed by, the employee's supervisor, unit head, the appropriate dean and vice chancellor or vice provost, as indicated. With limited exceptions, approval must be obtained prior to the start of the activity.
5. 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. Non-exempt staff must have supervisor approval for teaching, and the amount is subject to employee availability and impact on the unit's operations.
6. An employee is limited to one activity not involving credit-hour teaching at a time for extra compensation. A non-credit activity and extra compensation teaching may be done in the same term.
7. Neither state grant funds nor federal funds may be used to pay extra compensation unless approved by the granting agency. For approval, contact Research Support and Sponsored Programs (RSSP).
8. The extra compensation process shall be administered by University of Arkansas Human Resources, unless an exemption has been approved by the chancellor.
9. Requests for extra compensation shall be submitted on the University of Arkansas Extra Compensation Form.
10. Extra compensation paid to benefits-eligible employees will have both employee and employer retirement contributions deducted.
11. Extra compensation is subject to the line-item maximum (LIM) annual salary for the position, subject to Ark. Code § 6-63-309, as well as the 20% of salary rule as defined by Universitywide Administrative Memorandum 440.2. Any proposed extra compensation exceeding the 20% of annual salary or exceeding the line-item maximum must follow additional approval steps
    1. Subject to the restrictions on line-item maximum salary as described above:
       1. To the extent an employee's annual salary is less than $50,000, approval by the appropriate vice chancellor is required for extra compensation in excess of 20% of his/her salary.
       2. To the extent an employee's annual salary is $50,000 or more, approval by the appropriate vice chancellor and chancellor is required for extra compensation in excess of 20% of his/her salary.
       3. To the extent an employee exceeds 125% of annual LIM with extra compensation, then the compensation must be paid through private funds and the request for exemption must be approved by the chancellor, vice chancellor for academic affairs, the president of the University of Arkansas system and the Board of Trustees.
12. Instruction for intersession courses by nine-month faculty in January is subject to Academic Policy 1405.20.

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