Utah State University (USU) recognizes that employees may make unusual contributions to the university, both related and unrelated, to their Primary Work Assignment. At times, these unusual contributions may be compensated to the employee through Extra Service Compensation (ESC), as outlined in USU Policy 3201. Depending on the source of funding for the ESC payment, certain requirements must be met prior to approval.
Definitions
- Extra Service: Any service rendered to the University that is not specifically identified as part of the employee’s Full Workload.
- Full Workload: Full workload for an employee shall be that workload for which an employee is compensated by the university, exclusive of compensation for incidental work. For exempt employees, it shall be that workload specified in the primary work assignment for a given period.
- Employees are not eligible for ESC payments, until they have reached a full workload equivalent to 12 months of compensation.
- Faculty on a nine-month appointment must fill all three summer months before becoming eligible for ESC.
- Part time, exempt employees must reach the equivalent of full-time compensation for 12 months before becoming eligible for ESC.
- Institutional Base Salary (IBS): IBS is the base compensation for an individual’s appointment (either a 9-month academic year or a 12-month fiscal year), which may be adjusted by FTE (Examples: 1.00 = full-time, .75 = 3/4 time, .50 = 1/2 time).
- IBS includes instruction/teaching, research, service, administration, or as defined in the employee’s current job description.
- IBS does not include summer months, extra service compensation, fringe benefit payments, reimbursed expenses, supplemental payments (one time or recurring), or payments from third parties for work performed outside of their institutional responsibilities (such as consulting, which must be approved by the supervisor and declared in the employee’s conflict of interest disclosure).
- IBS may not be increased or decreased as a result of replacing or supplementing salary funds with sponsored award funds.
- Institutional Base Salary Earnings Rate: The Institutional Base Salary Earning Rate shall be calculated based on the compensation level at which an employee is paid for their appointment term, divided by the number of months of that term.
- For faculty on a nine-month appointment, the IBS earnings rate is their nine-month salary divided by 9.
- For exempt employees and fiscal-year faculty, the IBS earnings rate is the full twelve-month salary divided by 12.
- Primary Work Assignment: The Primary Work Assignment is the basis upon which the University sets its expectations of an employee’s duties and allocation of effort. USU utilizes the following methods to establish the Primary Work Assignment:
- For Faculty: The primary work assignment is derived from the Role Statement.
- For Non-Faculty Exempt Employees: The primary work assignment is derived from the Office of Human Resources most recent position description available for that employee, which documents the responsibilities, functions, and requirements of each job.
ESC From Sponsored Programs Funding
ESC payments from sponsored program funding are governed by Uniform Guidance (2 CFR 200). To ensure consistency across all sponsored program funding sources, the following requirements are applied to all ESC payments from such funds.
ESC payments may be charged to sponsored program funding when all of the following conditions are met:
- The payment does not exceed the Institutional Base Salary Earnings Rate.
- The employee will perform a role outside of the individual employee’s organizational unit or is otherwise different from their Primary Work Assignment. Employees may not receive ESC for Extra Service work on projects for which they serve as PI or Co-I.
- Work is demonstrably in addition to the employee’s Full Workload for the reporting period during which it will be performed.
- The request is specifically proposed and included in the approved budget and/or agreement with the sponsoring agency or otherwise approved in writing by an authorized agency representative. By itself, agency approval for ESC shall not be considered as a waiver for requirements 1-3 above.
- The request is approved in advance by the Vice President for Research. Review and support will be required of the individual’s department head, supervisor, dean and/or vice president as appropriate prior to submission to the Office of Research.
ESC From Non-Sponsored Programs Funding
ESC payments may be charged to non-sponsored program funding when all of the following conditions are met:
- The Extra Service is compensated at a rate not to exceed the Institutional Base Salary Earning Rate.
- The work is outside the scope of the employee’s required job expectations, as set forth in the Primary Work Assignment.
- Work is demonstrably in addition to the employee’s Full Workload for the reporting period during which it was performed.
- The Extra Service is based on temporary and unusual circumstances, and funds have been allocated to pay for the services.
- The request is approved in advance by the Office of the Provost or the Office of the President depending on reporting structure. Review and support will be required of the individuals’ department head, supervisor, dean and/or vice president as appropriate prior to submission to the provost or president.
ESC Related to the Primary Work Assignment
Only in the most unusual circumstances can work related to an employee’s Primary Work Assignment be compensated as ESC. To be eligible for ESC for work related to an employee’s Primary Work Assignment, the payment cannot be from sponsored program funding and the work must be related to outcomes and activities focused on furthering the institutional missions of discovery, learning and engagement.
Submission and Approval of ESC Requests
ESC requests must be submitted through a ServiceNow form. Multiple levels of approval are required, including:
- Business Services
- Department Heads/Directors
- Deans/VPs
- The Sponsored Programs Office
- Provost’s Office or President’s Office (as appropriate)
To ensure approval before the work begins, submit requests as early as possible to allow adequate time for review and approval.
Training Requirements
Extra Service Compensation training in USU’s Learn Blue system is required for all employees receiving ESC, business services personnel, financial officers, supervisors, and administrators approving ESC requests.
ESC Procedures can be found in both the ESC training and linked to the ESC ServiceNow Request Form.
Responsibilities
Hiring Department: The hiring department is responsible for initiating the Request for Extra Service Compensation Form in ServiceNow.
Vice Presidents, Deans, Department Heads, and Supervisors: Work with employees to ensure compliance with federal agency requirements and expectations. Review Extra Service opportunities with employees before they occur to ensure that interference or conflict with the employee’s Primary Work Assignment is avoided or appropriately managed. Departments and colleges will bear primary responsibility for repayment of disallowed Extra Service Compensation costs.
Employees: Accurately complete their portion of the Request for Extra Service Compensation Form and obtain supervisory approvals prior to submission. Disclose conflicts of interests as they arise.
Employees approving ESC requests: By approving an ESC request in ServiceNow, the employee affirms their understanding of USU Policy 3201 and certifies that the request fully complies with the policy’s requirements.
Other Considerations
ESC should be for work that is temporary and unusual in nature.
A salary buyout should be considered prior to considering ESC.
ESC may not exceed 20% of the individual’s (IBS) without prior written approval of the Office of the Provost or the Office of the President, depending on reporting structure.
Leave cannot be used in order to allow time for the employee to complete the work.
Summer salary and partial FTEs must be filled prior to requesting ESC.
If an employee performs their ESC work during normal working hours the missed hours will need to be made up within the same work week.
ESC is meant to be for temporary and unusual circumstances. If multiple requests are received for the same work, additional justification will be required in the third year. If the work continues after three years of receiving ESC, the work is no longer considered temporary or unusual and should be evaluated for inclusion in the employee’s Primary Work Assignment.
Only faculty and exempt employees are eligible to receive ESC.
If ESC work spans multiple fiscal years, separate requests must be submitted for each fiscal year (July 1 – June 30).
If ESC is needed for teaching multiple courses, separate requests must be submitted for each course.
FAQs
Are Non-Exempt employees eligible for ESC payments? No. Only faculty and exempt employees are eligible to receive ESC.
Can the ESC earnings rate exceed the earnings rate for my primary position? No. ESC must not exceed the earnings rate for your primary position.
Do I need to submit the ESC request before starting the work? Yes. ESC must be submitted and approved before work begins.
Can I submit one request for ESC that spans fiscal years? No. Separate ESC requests are required for each fiscal year.
If I have sponsor approval (sponsored programs funding), do I still need to meet other requirements of USU Policy 3201? Yes. Sponsor approval alone does not override the policy’s other requirements.