Extra Compensation Policy

Version: V.1
Responsible Office: Office of the Provost; Office of Human Resources
Effective Date: August 31, 2023

Policy Statement

In special circumstances, Fordham University allows University employees to receive additional compensation from or through the University in excess of the individual’s Institutional Base Salary. The University may provide extra compensation to employees for performance of additional services only when the intended activity is clearly outside the normal workload of the individual – i.e., services above and beyond an employee’s University appointment and associated Institutional Base Salary – and in response to a special or urgent need that can best be satisfied by the employee as determined by the appropriate Academic Leader, Department Head, or Provost/Area Vice President, and in accordance with this Policy.

Reason for the Policy

The University has implemented this Policy to establish guidelines under which employees may receive compensation paid by or through the University in excess of their Institutional Base Salary (IBS) for work performed beyond an individual’s normal workload, and, in the case of sponsored programs, to meet the requirements of federal regulations.

As noted in Institutional Base Salary Policy, an employee’s IBS is the annual compensation paid by the University for an individual’s University appointment, whether that individual’s time is spent on research, instruction, service, administration, or other activities, and regardless of funding source.

Compensation above IBS that is paid by or through the University for performance of additional services would occur only in very limited and specific circumstances, as guided by this Policy and all applicable federal regulation.

Responsible University Office/Officer

Office of the Provost for faculty and graduate students
Office of Human Resources for all other staff

Applicability of the Policy

This Policy applies to all University employees, including, but not limited to, faculty and administrative staff. Employees covered under collective bargaining agreements should follow the provisions of their contract.

Policy Text

Faculty
In rare and exceptional circumstances, University faculty may be requested to provide additional services that are clearly outside the individual’s normal workload and appointment, and that are in response to a special or urgent need that can best be satisfied by the individual, as determined by the appropriate Academic Leader, Department Head, or Provost/Area Vice President. Extra compensation beyond IBS may be warranted for such additional work. Assignments must meet the following criteria to be considered for extra compensation:

  • The activity is clearly beyond the individual’s normal job duties associated with the individual’s IBS.
  • The activity must not interfere with the individual’s ability to fulfill the duties and responsibilities associated with their regular faculty appointment. The individual must be satisfactorily performing regularly assigned duties.
  • The activity must clearly fall outside of full-time (100%) effort in the regular 9-month academic year appointment.
  • The activity should not be used as a regular supplement to an individual’s salary.
  • The activity must be consistent with sponsor policies (where applicable).

Summer salary for work that 9-month faculty appointees complete outside the academic year is not extra compensation and is not subject to this Policy; summer salary is subject to the University’s policies on summer salary (policy forthcoming).

Administrative Staff
Administrative staff who perform additional duties unrelated to the individual’s normal job duties or over and above the regular and expected workload of the individual may be eligible for extra compensation. Extra compensation refers to payment for work that falls clearly outside an employee's regular job responsibilities. Such assignments should only occur under special circumstances and require prior approval. Supervisors must consult with their Area Vice President and HR before establishing any additional compensation. HR will determine if additional compensation is warranted and appropriate. It is intended that the administrative review process be carried out on the presumption that all activities of a professional employee all under their general scope of normal duties unless the specific conditions clearly demonstrate otherwise.

Other Staff
Staff covered by collective bargaining agreements should refer to the provision of their agreement.

Procedure
The appropriate Academic Leader or Department Head, the Office of Sponsored Programs (if extra compensation is requested in connection with work on a sponsored project); and the appropriate Vice President or Provost must review and approve in writing all requests for extra compensation for faculty and for graduate students in keeping with applicable collective bargaining provisions. HR (and the Office of Sponsored Programs if extra compensation is requested in connection with work on a sponsored project) must review and approve in writing all requests for extra compensation for all other staff. Where extra compensation is requested for services, including services performed on sponsored projects, the necessary written approval must be obtained prior to the start of extra compensation activity. As part of the approval process, the University will carefully evaluate all circumstances to determine whether extra compensation is warranted.

Special Considerations for Sponsored Programs
Absent unusual and specific circumstances, federal regulations and sponsor policies preclude the University from charging extra compensation to federally-sponsored projects. IBS therefore may not be increased as a result of replacing University salary funds with sponsored project funds.

Extra compensation paid under federally sponsored activities must be consistent with the specific circumstances set forth in the OMB Uniform Guidance section on Extra Service Pay (2 C.F.R. § 200.430) and any sponsor-level rules, regulations, and award terms and conditions. The University does not permit extra compensation charged to federally sponsored projects without specific written sponsor prior approval. In any funding application that requests extra compensation payments, the budget justification must state explicitly that the salary listed for the relevant individual represents extra compensation payments (“Extra Service Pay”) above the individual’s IBS. In addition, prior approval for such extra compensation must be explicitly sought and obtained from the funding sponsor in accordance with all applicable requirements. It should be noted that a sponsor’s failure to question a budget or other request for any form of extra compensation is not adequate approval. Specific sponsor written approval for “Extra Service Pay” is required.

Definitions

Extra Compensation
Extra compensation means compensation payments above IBS for additional work that is beyond an employee’s normal workload. Incentive and performance-based bonus payments are not considered extra compensation subject to this Policy.

Institutional Base Salary (IBS)
Institutional Base Salary means the annual compensation paid by the University for an individual’s appointment, whether that individual’s time is spent on research, instruction, service, administration, or other activities, and regardless of funding source. It includes regular salary, as well as the academic year portion of any additional assignment (e.g., dean, chair, director of University center) as established in the individual’s annual appointment letter (or similar notification) or other written document at the time of hire.

Contacts

Office of the Provost for salary and IBS related questions
Director of Sponsored Programs for pre-award questions
Office of Human Resources for administrative staff questions

Cross-Reference to Related Policies

Institutional Base Salary
Effort Reporting in Sponsored Projects [to be created]

Exclusions and Special Situations

None

Revision History

None
August 2023