II - 1.23 - Policy on Maximum Annual Salary and Extra Compensation for Faculty
I. Purpose
The purpose of this policy is to describe the maximum salary for faculty, the extra compensation process, and the general provisions, circumstances, and limitations for overload compensation for faculty of Bowie State University. All tenured, tenure track and long-term contractual faculty, department chairs and assistant/associate deans are eligible to earn extra compensation. The term faculty will be used to refer to all individuals with the above-listed titles unless otherwise specified.
II. Definitions
Base Rate of Pay: Base Rate of Pay is the monthly rate of pay, and refers to the maximum academic year or base salary divided by the number of months in the academic year. The number of months in the academic year is 9 months for faculty and 11 months for department chairs.
Maximum Academic Year Salary: The salary amount listed on an academic year contract.
Market Rate: The usual price charged for a good or service in a free market.
Overload Compensation or Extra Compensation: Compensation for work performed outside of, and in addition to, normal working assignments and responsibilities, and could include teaching above a faculty member’s normal load. Such work is performed in addition to the faculty member’s full workload and is typically non-recurring and specific in nature.
Maximum Overload Compensation: The maximum rate for overload compensation is 30%.
Maximum overload compensation is computed by multiplying the base rate of pay by the maximum overload compensation rate. When it is derived from federal funding sources (including state pass through funds), it is always calculated at the faculty member's base rate of pay for the academic year.
III. Policy
Bowie State University encourages faculty to engage in research, consulting, service, and training activities with funding provided both internally and through externally sponsored projects. Such activities build upon the University’s mission, contribute to the quality of instruction provided to students, advance the goals of the University, and enhance the institution’s standing in the nation. When pursuing external funding, the potential funder and the University expect that faculty in planning their project will assess the time needed to complete the project, and first seek summer support and release time. The University also recognizes that under certain conditions, these activities may be performed outside of, and in addition to, normal working assignments and responsibilities, which may warrant extra compensation.
- Guidelines on Overloads not Involving Federal Funds
Extra Compensation during the Academic Year
Extra compensation on contracts and on non-federally funded grants may be paid at market rates but not to exceed the 30% maximum during the academic year.
Summer Compensation
In addition to extra or overload compensation, summer compensation can be provided as follows:
- A Faculty member with a 9-month academic year contract may earn additional pay up to one-third (3 months) of his/her academic year salary during the summer.
- A Department Chair with an 11-month academic year contract may earn additional pay up to one month of his/her academic year salary during the summer.
- Summer compensation for faculty is further restricted by the University if the faculty member is on a teaching or instructional contract with the University.
- Summer compensation is not applicable to an individual on a 12-month contract.
Procedure for Overload Requests for Non-Federal Funds
With the use of the overload form, the Department Chair and Dean must certify that the overload assignment meets the following criteria:
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- The assignment is outside of the appointment expectations as contained in an individual’s appointment letter or contract.
- The overload assignment will be arranged at times that don’t interfere with his/her regular duties; that the arrangement has the permission of his/her supervisor, that the individual’s tasks and schedule will be arranged such that his/her overload assignment will not negatively impact the work or schedule of deliverables supported by the agencies.
- Overload compensation cannot be granted in the same semester in which a faculty member is granted release time.
B. Guidelines on Overloads Involving Federal or Federal Flow-through Funds (Federal Funds)
Compensation, including overload payments, for personnel paid via Federal Funds is governed by The Uniform Guidance, 2 C.F.R. Part 200.430 (h)(2) through (h)(4).
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- Salary basis.Charges for work performed on Federal awards by faculty members during the academic year are allowable at the Institutional Base Salary (IBS) rate. In no event will charges to Federal awards, irrespective of the basis of computation, exceed the proportionate share of the IBS for that period. This principle applies to all members of faculty at an institution. IBS is defined as the annual compensation paid by an IHE for an individual's appointment, whether that individual's time is spent on research, instruction, administration, or other activities. IBS excludes any income that an individual earns outside of duties performed for the IHE. Unless there is prior approval by the Federal awarding agency, charges of a faculty member's salary to a Federal award must not exceed the proportionate share of the IBS for the period during which the faculty member worked on the award.
- Intra-Institution of Higher Education (IHE)consulting by faculty is assumed to be undertaken as an IHE obligation requiring no compensation in addition to IBS. However, in unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the faculty member is in addition to his or her regular responsibilities, any charges for such work representing additional compensation above IBS are allowable provided that such consulting arrangements are specifically provided for in the Federal award or approved in writing by the Federal awarding agency.
- Extra Service Paynormally represents overload compensation, subject to institutional compensation policies for services above and beyond IBS. Where extra service pay is a result of Intra-IHE consulting, it is subject to the same requirements of paragraph (b) above. It is allowable if all of the following conditions are met:
(i) The non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards.
(ii) The non-Federal entity establishes a consistent written definition of work covered by IBS which is specific enough to determine conclusively when work beyond that level has occurred. This may be described in appointment letters or other documentations.
(iii) The supplementation amount paid is commensurate with the IBS rate of pay and the amount of additional work performed. See paragraph (h)(2) of this section.
(iv) The salaries, as supplemented, fall within the salary structure and pay ranges established by and documented in writing or otherwise applicable to the non-Federal entity.
(v) The total salaries charged to Federal awards including extra service pay are subject to the Standards of Documentation as described in paragraph (i) of this section.
Accordingly, overload payments are never allowed where federal funds are involved without specific sponsor approval.
Steps for processing overload requests on federal/federal flow through sponsored accounts:
- It is the responsibility of the Department/College requesting the overload to obtain approval from the program officialat the sponsoring agency. The program official’s approval should then be sent to the Office of Research and Sponsored Programs (ORSP), along with a letter signed by the responsible departmental official certifying all points in 3. below. ORSP will submit the official institutional request to the administrative official of the sponsoring agency who will provide the University with the official approval or rejection.
- Department/College must certify in the ARS that the overload assignment is outside of the appointment expectations as contained in the individual’s appointment letter or contract.
- Department/College must provide certification that the overload assignment will be arranged at times that don’t interfere with his/her regular duties; that the arrangement has the permission of his/her supervisor, that the individual’s tasks and schedule will be arranged such that his/her overload assignment will not negatively impact the work or schedule of deliverables supported by the sponsoring agency or agencies.
IV. Related Policies
2 C.F.R. 200, Uniform Administrative Guidance, Cost Principles and Audit Requirements for Federal Awards.
USM II-1.21 Policy on Compensation for Faculty
USM II-1.25 Policy on Faculty Workload and Responsibilities
USM II-3.10 Policy on Professional Commitment of Faculty
USM II-3.20 Policy on Teaching Outside the Home Institution by Full-Time Faculty
BSU II-3.10 Policy on Professional Commitment of Faculty
Effective Date: 11/30/1994 Revised Date: 5/22/2024