## COVID-19 Update

Non-essential employees are mostly teleworking, and classes have shifted to a hybrid model, with in-person and online instruction.

# II - 1.23 - Policy on Maximum Annual Salary for Faculty

## I. Purpose

The purpose of the Bowie State University Policy on Maximum Annual Salary for Faculty is to define the maximum salary a Bowie State University faculty member may earn above his or her regular academic year contract and how that compensation is to be determined.

## II. Policy

Faculty will be compensated on an academic year basis, a summer basis, and an annual basis with the maximum compensation of 20% as determined by the formula outlined in the Procedures Section below.

## III. Procedures

1. Formula:  The maximum academic year compensation for a faculty member on a ten-month contract would be determined as follows:

a. Multiply the ten-month salary by .20; the resulting figure is the maximum overload allowed for ten months.

b. The sum of the overload calculated in (a) plus the ten-month salary is the maximum ten-month salary allowed.

2. Example: The maximum academic year compensation for a faculty member making \$40,000 on a ten-month contract would be determined as follows:

a. To determine the overload salary for ten months, multiply the ten-month salary by .20: \$40,000 x .20 = \$8,000.

b. To determine the maximum ten-month salary, add the overload in (a) to the ten-month salary: \$40,000 + \$8,000 = \$48,000.

B. Maximum Annual Compensation

1. Formula: The maximum annual compensation for a faculty member will be determined as follows:

a) Annualize the ten-month academic year salary; then

b) Multiply that figure by 1.2 to obtain the 20% maximum overload compensation.

2. Example: The maximum annual compensation for a faculty member making \$40,000 on a ten-month contract would be determined as follows:

a) To determine annualized salary, divide ten-month salary by ten and then multiply the monthly salary by twelve: \$40,000 / 10 = \$4,000 per month; 12 x \$4,000 = \$48,000 annualized salary.

b) To determine maximum compensation (20% above annualized salary), multiply annualized salary by 1.2: \$48,000 x 1.2 = \$57,600 maximum yearly compensation.

C. Maximum Summer Compensation

1. Formula: The maximum summer compensation, the maximum regular summer compensation, and the maximum summer overload compensation will be determined as follows:

a) Maximum summer compensation: subtract the maximum academic year compensation from the maximum annual compensation.

b) Maximum regular summer compensation: multiply the ten-month salary by .20.

c) Maximum summer overload compensation: subtract the maximum regular summer compensation from the maximum summer compensation.

2. Example: The maximum summer compensation, the maximum regular summer compensation, and the maximum summer overload compensation for a faculty member making \$40,000 on a ten-month contract would be determined as follows:

a) Subtract the maximum academic year compensation [II.A.2.b] from the maximum annual compensation [II.B.2.b]. The difference is the maximum summer compensation: \$57,600 - \$48,000 = \$9,600.

b) Multiply the ten-month salary by .20. The resulting figure is the maximum regular summer compensation: \$40,000 x .20 = \$8,000.

c) Subtract the maximum regular summer compensation from the maximum summer compensation. The difference is the maximum summer overload compensation: \$9,600 - \$8,000 = \$1,600.

Effective Date:  11/30/1994