Extra Compensation is a form of non-standard payment awarded to employees in FLSA "Exempt" positions who may, from time to time, provide occasional services to operating units other than their own. The following preconditions are required for an FLSA "Exempt" staff employee to be considered eligible for Extra Compensation:
- The employee must have already performed the work at the time of payment,
- The additional work must have been performed outside of the employee's home department, under the supervision of someone other than the employee's normal supervisor,
- The work must have been of a non-repetitive nature designed to address a one-time, specific business need.
- The work must have been performed either outside of normal working hours or while on paid annual leave,
- The work must not have otherwise resulted in an interdepartmental conflict of interest.
- The work must not be part of a pre-agreed inter-departmental staff support arrangement. In such cases the correct approach is to create a separate budgeted position within the receiving department's organizational structure.
- The compensation must be based on a reasonable rate of pay in relation to the duties performed (i.e. the compensation should be equivalent to an hourly rate that is within the UNM pay range applicable to the nature and level of services provided.)
If all of the above preconditions are met, the department may request Extra Compensation for the employee by submitting a Non-Standard Payment form along with a record of hours worked, a statement of the nature and level of duties performed, and documented evidence that the work was performed either outside of normal hours or on annual leave, signed by appropriate department management. If any of the above preconditions are not met, the department should contact the appropriate HR Consultant to explore possible alternative arrangements for employee compensation, such as creation of a second, on-call assignment.
Additional employee work assignments that are proposed for compensation though the Non-Standard Payment process should be brought to the attention of the appropriate HR Consultant before the work is performed to establish compliance with Section 8 UAPPM 3500 and the above-stated preconditions. Failure to follow this procedure could result in significant administrative problems and delays in payment.
Non-Exempt employees do not receive Extra Compensation. These employees are typically paid for such work at their normal rate of pay via the normal payroll process, subject to FLSA overtime provisions as appropriate.