Additional Compensation

Effective: Moved to Policy Library from UPM 3.7(1) and UPM 3.7(2)
Updated/Revised: July 1, 2019
Contact: University Human Resources (UHR) Classification and Compensation Office


The university recognizes that occasions may arise when ISU faculty and staff provide professional services to the university that fall outside the realm of their normally assigned position descriptions and/or duties.

Before considering additional compensation under this policy, the department requesting the employee's services should consider a "buy-out" from the employing unit of a portion of the individual's full-time appointment for the time period during which the services are to be rendered.

"Buy-out" refers to either a transfer of funds between units, or a change in funding source for the employee's salary. A buy-out will result in a portion of the person's time being shifted to the alternate funding source, and both the primary employing unit and the unit requesting the service must agree to this arrangement. This option should be utilized if possible, especially in instances in which the amount of time involved is of a significant magnitude or the activity will extend over a substantial period of time.

If a buy-out is not feasible, additional compensation may be considered. Additional compensation is the subject of this policy.

Policy Statement

Current faculty and staff may agree to provide services for a university department other than the department that employs them, or, in rare instances, their employing department or unit, when the duties to be performed are not considered part of their usual, on-going responsibilities.

The payment of additional compensation requires prior approval from the senior vice president and provost (SVPP) for requests for faculty and for teaching to be done by staff; requests for staff (for duties other than teaching) require approval by the respective HR Service Delivery Team. This option provides payment for services above and beyond the faculty or staff member's salary as additional compensation. Additional compensation may be approved only when it is determined that an employer/employee relationship exists in regards to the services to be performed. (When the person is performing as an independent contractor, the professional services agreement procedures outlined by Procurement Services apply; see Resources below.)

The unit requesting the services, the primary employing unit, and the individual must agree to the specific work arrangements. A formal request to pay additional compensation is submitted to the SVPP or to the HR Service Delivery Team.

Notification will be provided when the approval is granted, at which time the work may begin. Unless otherwise stipulated, reasonable efforts will be made to assure additional compensation is paid during the pay period in which the services are performed.

Distance Education; CEPD

An additional compensation payment is automatically allowed, as an exception to the additional compensation provision above, when:

  • The faculty or staff member teaches a for-credit course under the college's distance education policy, or
  • One provides conference or workshop services for continuing education and professional development (CEPD) (see resources below)

Federal Funds

When paying additional compensation to a university employee from a federally sponsored fund, and, if the payment is not incidental, the compensation must be budgeted within the grant proposal. If the compensation has not been budgeted, the payment can be approved only after written approval of the granting agency has been obtained.