1001 Compensation Above Salary

Responsible Official: 
University Controller
Responsible Office: 
Controller's Office
Effective Date: 
January 31, 2014
Revision Date: 
January 25, 2016

Scope

This document sets forth policy for the appropriate administration of compensation above institutional base salary throughout the University. See Policy 1311: Institutional Base Salary for Sponsored Projects.

Policy Statement

Yale University’s compensation policy rarely allows for compensation charges in excess of an individual’s institutional base salary; when allowed, there are specific prior approvals required.

Reason for the Policy

This Policy describes the basis for permitting faculty or staff compensation above salary or salary in excess of what is defined as institutional base; when allowed there are specific prior approvals required (refer to Procedure 1001.PR.01 Compensation Above Salary).

Definitions

Compensation Above Salary

Compensation above salary is a payment over and above an individual’s institutional base salary or wages and benefits whether one-time or on-going. It is paid for services rendered, as defined in policy sections 1001.1 - 1001.4

Institutional Base Salary (IBS)

Institutional Base Salary (IBS) is the annual compensation paid by the University for an employee’s appointment, whether that individual’s time is spent on research, teaching, administration, patient care or other activities. The IBS does not include bonuses, one-time payments or incentive pay.  Also excluded from the IBS is salary paid directly by another organization including but not limited to the West Haven Veterans Administration Hospital or Howard Hughes Medical Institute and income that an individual is permitted to earn outside of their University responsibilities such as consulting.For additional information, see Policy 1311 – Institutional Base Salary for Sponsored Awards.

Intra-University Consulting

Intra-university consulting, now referred to in the Uniform Guidance (2 C.F.R. Part 200) as Intra-Institution of Higher Education consulting, is collaboration, cooperation, and consulting among Yale employees, expected by the University, and generally requires no compensation above IBS.  

Incidental Work

Incidental work is a specific, non-recurring activity which is clearly separate, remote and in excess of normal for an individual’s University responsibilities.

University Responsibilities

University responsibilities refers to “…formal and scheduled commitments such as classes, formal but unscheduled commitments such as pursuit of personal research and supervision of thesis research, and informal participation in other University activities.”  An employee’s University responsibilities are delineated in an appointment letter or other similar documentation.

Policy Sections

1001.1 Faculty

Faculty employed full-time by the University normally may not receive additional income from the University for work performed during a period of full-time employment. This includes income from salary, honoraria, or other kinds of compensation. Requests for exceptions to this policy are rarely given and must be made in advance and in writing to the Provost or Provost Designee.

Please refer to the faculty handbook for detailed policies regarding extra compensation for faculty.

Special Considerations for Sponsored Awards

Absent unusual and specific circumstances, regulations and sponsor policies preclude the University from charging extra compensation payments (i.e., compensation in excess of IBS) to federal sponsored projects.

In addition, federal regulations and University policy consider faculty intra-University consulting to be undertaken as a University responsibility requiring, with only limited exceptions, no compensation above the IBS. The exception to this is an unusual situation 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 University responsibilities.  In these unusual cases, intra-University consulting may be charged to a federal award if its approved in writing by the sponsor or specifically provided for in the award document(s). 

In all cases when sponsor approval is required, it must be obtained prior to charging the extra compensation to the sponsored project.  A sponsor’s failure to question a budget or other request for any form of extra compensation is not adequate approval. Documentation of sponsor approval must accompany the request for Provostial approval. Compensation charges in excess of an individual’s institutional base salary charged to sponsored projects must be at a rate not in excess of the IBS rate.

Requests for extra compensation from a sponsored project that are submitted after the work was performed will not be allowed.

Note: Extra compensation for activities that are not charged to a sponsored award may affect commitments made to sponsors. Extra compensation paid to an individual who is also devoting committed effort to sponsored awards must be carefully reviewed to determine if the commitments are reasonable.

Extra compensation for activities that is charged to sponsored awards must comply with effort commitment and reporting requirements as applicable.

Questions regarding effort should be directed to the Office of Sponsored Projects’ Effort Reporting Central Administrator at effort.reports@yale.edu.

1001.2 Managerial and Professional (M&P’s)

All employees are expected to fill in for vacations and other short-term absences; however, when the temporary assignment exceeds 30 calendar days and the work performed is at a higher level, additional temporary compensation may be appropriate.

Compensation above institutional base salary may be appropriate when an individual is assigned, in writing, a major component of a job at a higher salary grade and is held accountable for the full scope of the job on a temporary basis in the absence of another member of the organization.

M&P’s may also be eligible to receive compensation above institutional base salary for:

  • work performed outside normal working hours and outside of the primary home department (i.e., additional jobs);
  • management of additional work units or departments (assignment exceeding 30 calendar days);
  • Other salary supplements (e.g. bonuses, recognition awards and non-base building merit increases).

Other Requirements/Considerations

  • Departments must not offer compensation above salary to employees until all required approvals have been obtained.
  • All compensation above salary lasting longer than six months must be reviewed and approved at least annually.
  • Salary for administrative personnel that is to be supported by a sponsored project is specifically restricted. Refer to Policy 1403 – Charging of Administrative or Clerical Salaries and Certain Other Expenses to Federal Funds for guidance.
  • If M&P’s are assigned teaching responsibilities within Yale College, the Graduate School, or any of the Professional Schools outside of the scope of their regular position, a departmental reduction in hours to support the teaching activity is required rather than compensation above salary

1001.3 Bargaining Unit Employees

Other Requirements/Considerations

  • All required approvals must be obtained before a work unit or department can offer compensation above salary to an employee.
  • All compensation above salary lasting longer than six months must be reviewed and approved at least annually.
  • All additional jobs require review and approval by Human Resources and permission from the employee’s supervisor.
  • If the additional job involves teaching duties additional approval by the Provost Office (FAS) or the Academic/Faculty Affairs Office (YSM) is required.
  • Salary for administrative personnel that is to be supported by a sponsored project is specifically restricted. Refer to Policy 1403 – Charging of Administrative or Clerical Salaries and Certain Other Expenses to Federal Funds for guidance.

1001.4 Post-Doctoral Fellows (PDF) and Post-Doctoral Associates (PDA)

Compensation above salary for post-doctoral fellows and associates is expected to be rare and only granted in exceptional circumstances. Any compensation above salary requests for post-docs must be made in advance to the Office of Postdoctoral Affairs.

Special Staff Considerations for Sponsored Awards

Salary for administrative and clerical personnel that is to be supported by a sponsored project is specifically restricted. Refer to Policy 1403 – Charging of Administrative or Clerical Salaries and Certain Other Expenses to Federal Funds for guidance.

Additional Considerations for Supplemental/Extra Compensation Charged to Sponsored Awards: Effort Reporting

Incidental work, as defined in this guidance, for which supplemental compensation is paid to a Yale employee by Yale, is not included in the Effort Reporting System provided such work and compensation are separately identified and documented in the financial management system. Refer to Policy 1315 Effort Reporting:  Certifying Effort on Sponsored Projects.  Use of the appropriate extra compensation earnings elements and expenditure codes allows for this type of incidental work and associated extra compensation to be separately identified and documented in the financial system.

On-going payments for (extra) compensation above salary must be at a minimum commensurate with the effort devoted and in accordance with the proposal to the sponsor and/or sponsor requirements. Use of the correct salary expenditure codes and earnings elements will allow for the work to be appropriately captured in the effort reporting system.

Likewise, for (extra) compensation above salary that is not charged to a sponsored project, the correct earnings element and expenditure code must be used because time and effort expended for the activity for which the extra compensation is earned may affect the time and effort available to sponsored projects.

 

Special Situations/Exceptions

Exceptions to this policy must be reviewed by: The Controller’s Office