Policy

Compensation in excess of an employee’s annual base salary is permitted for special projects under specific circumstances so long as such special payment is not in violation of any federal or state law or contractual provisions.

Reason for Policy

Sets forth policy and procedure to ensure consistency in compensation practices regarding special projects.

To Whom Does the Policy Apply

All faculty, staff, and student employees.

Related Documents

Procedure 616: Special Projects & Payments

Contacts

People Operations & Employee Resources
(201) 684-7506

Date of Revisions: September 2013, January 2014, May 2023

Compensation in excess of an employee’s annual base salary is permitted for special projects under specific circumstances so long as such special payment is not in violation of any federal or state law or contractual provisions. Special payments are managed in accordance with  IRS publication 15 for supplemental wages: Supplemental wages are wage payments to an employee that are not regular wages. The wages are subject to social security, Medicare, and FUTA taxes.

All Ramapo College employees may be eligible for special payment. Volunteers, vendors, retirees, and independent contractors are not eligible for special payment.

I. Responsibilities

a. POER Pre-Approval: Prior to the commencement of any special project requiring a special payment, the Supervisor must contact People Operations and Employee Resources (POER) to determine if the project is eligible for a special payment and to identify the source of funding. A special payment will not be processed unless pre-approval(s) have been obtained from POER.

b. Payment Rate: The amount of the special payment must be determined in advance with POER in consultation with the Provost/respective Vice President or their designee. The amount is based on existing salary guidelines, internal and external market value, and contractual agreements for Ramapo College faculty and staff.

c. Payment Timeframe: No special payments will be made in advance of work commencing on a special project. Employees may be required to refund, full or partially, the College if the special project is not completed and a special payment is received. Special payments may be issued as follows:

• One-time activity – special payment will be made upon satisfactory completion of the special project

or

• Ongoing activity – special payment will be made via an approved payment schedule.

d. Request Approvals: The request for special payment must be authorized by the Unit Head, Core Vice President, Office of Budget and Fiscal Planning, Grants Officer (if grant funded), and People Operations and Employee Resources.

• Unit Head Responsibilities:

1. 1. contacting POER and the Provost/ respective Vice President for pre-approval of a special payment prior to a special project being assigned or initiated;
   2. ensuring that the special project work is performed in accordance with the description provided and does not interfere with the employee’s regular duties; and
   3. determining the source of funding.

• Vice President Responsibilities:

1. 1. authorizing the operational need for the special project to be performed; and
   2. authorizing the expense.

• Office of Budget and Fiscal Planning Responsibilities:

1. 1. ensuring funds are available for the FOAP provided; and
   2. providing final budget authorization.

• Grants Office Responsibilities:

1. 1. when the special payment is grant funded, the Grants Office ensures funds are available/allowable to be paid from the grant, and
   2. confirming the FOAP to be used for the payment.

Note: For externally funded projects, grants or outside funding must cover the full cost of the special payment including any fringe. Grant funded special payments must be in full compliance with the College’s Grant Policy and Grantor requirements.

• People Operations and Employee Resources Responsibilities:

1. 1. ensuring the special project is in compliance with College polices and not in violation of any federal or state law, or contractual provisions, and
   2. ensuring payments are processed in accordance with the pre-determined payment rate and payment timeframe.

• Financial Aid/Student Services Center Responsibilities:

1. 1. pre-approving all special payments issued to students to ensure compliance with College policies and labor laws.

II. Eligibility for Exempt Employees

In certain cases, special compensation in excess of an exempt employee’s annual base salary is permitted for special projects. These activities may be performed under externally sponsored projects or other internally funded activities when those activities occur outside the normal workday and are not part of the regular duties or workload. These activities must not:

• constitute a conflict of interest,
• occur at a time when the individual is expected to perform their assigned duties, or
• diminish the individual’s efficiency in performing his/her primary work obligations at the College.

Externally funded special projects are defined as those for which the College administers funds under a contract, grant, or other agreement from a federal, state, or local government agency, not-for- profit entity, or business. Internally funded special projects represent special services to the institution, such as, honoraria or stipends for workshops or presentations.

Non-Fixed work week (“NL,” Exempt) employees are expected to perform their regular duties and responsibilities as assigned by the College without regard to work hour limitations. There is no claim or entitlement to time off or cash compensation for hours worked beyond the normal work schedule for performance of their regular duties and responsibilities in accordance with the College’s Compensatory Time Policy.

III.        Eligibility for Fixed Work Week Staff (Non-Exempt Employees)

Classified, fixed work week staff are entitled to overtime compensation in accordance with contractual agreements for performance of their regular duties beyond the normal work schedule. However, in accordance with N.J.A.C. 4A:3-5.6 (e) 1, if a classified employee works on a part-time, occasional, or sporadic basis, and solely at the employee’s option, in a different capacity from which the employee is regularly employed, the hours employed in the different capacity are excluded from the calculation for overtime compensation and such hours may be paid at special payment rates.

This policy does not supersede or replace any contractual agreements with regard to extra compensation or special payments.

IV. Requirements

All special payment requests must be submitted through the College’s EPAF system and include:

a. Detailed description of assignment

b. Start and end date of assignment

c. Number of hours to be worked

d. Payment rate (to be supplied and verified by POER)

e. Payment timeframe

V. Special Payment Categories

Special Payments must fall into one of the three below categories:

Category 1: One-time payments for work performed that is unrelated to the primary job

• Temporary work performed one time or on a limited basis by a current employee that is unrelated to their primary job description/job responsibilities will be paid through a special payment.
• Hours of work must not overlap with the employee’s primary job; therefore, hours of work must be included in the request for special payment.
• If the special project work is performed on a continuous or regular basis, the request will be reviewed by POER and a determination made if the work needs to be included in a new job description.

Category 2: Out-of-title payments for work performed that is related to the primary job, but is at a higher classification level

• Temporary special project work performed by a current employee that is related to their primary job description but the job duties performed are classified at a higher level than the employee’s current classification, will be paid through a special payment in accordance with the current contract, if applicable.
• If the special project work is performed for more than six months, POER will review the request and decide if it should be processed through the College’s Reclassification Policy.
  • Reclassifications for Classified Staff
  • Reclassifications for Unclassified Staff

Category 3: One-time payments for student employees

• Students should generally be paid through time sheets.  Any student special payment request that is not captured in a timesheet must be reviewed and approved by the Financial Aid Office/Student Service Center.  In cases of a student stipend for an assignment they performed throughout the semester(s), the Unit Head must approve prior to submission to POER.  No student will be paid through special payments otherwise.
• The Financial Aid Office/Student Service Center and POER will review and determine if the student should be paid through a timesheet or special payment.  Units must reach out to the Financial Aid/Student Service Center and POER before special project work is assigned to or performed by the student.

Notes:

• No employee should ever be paid cash for work performed. It is strictly against College policy.
• If the special project work does not fit into the above parameters, approval by the Mission Element Team will be required before proceeding with special payment.
• For some faculty assignments there is a memorandum of agreement that outlines a schedule of compensation for monies to be paid to faculty for work on various academic programs.
• Any special project involving software must be reviewed by the CIO.
• Any special project requiring student assistants must be reviewed by the Cahill Career Center to ensure all practices are compliant with labor laws.