The University of Alabama, Division of Finance and Operations

Staff Supplemental Compensation Policy

Unit:  Human Resources
Contact: Susan Norton
Title:  Senior Associate Vice President for Human Resources and Chief Human Resources Officer
Effective Date: 8/15/2013
Revision Date: 11/12/2018



The purpose of this policy is to set guidelines for supplemental compensation. Full-time staff members may request supplemental compensation, both internal and external, within the limits set by this policy. It is the responsibility of each staff member to adhere to the provisions and spirit of this policy. Any questions concerning the policy should be discussed with the appropriate administrative officer, who is the individual to whom the requesting employee reports, before pursuing a supplemental compensation activity.



Supplemental compensation must be approved by the appropriate Vice President in advance of the work being performed. Staff members may not undertake compensated activities that will in any way (a) conflict with the lawful interests and goals of The University of Alabama, (b) impinge on their primary responsibilities to the University, or (c) conflict with the University’s ethics policies or the State of Alabama’s ethics laws.

Staff members must use annual leave for supplemental compensation for work performed during an employee’s normal work hours unless other arrangements for scheduling have been made. Regular assignments must be fulfilled. Any rescheduling of assignments during the time of a staff member's supplemental compensation activities must be described in writing and must have prior approval of the appropriate administrative officer.

The maximum number of consulting days that can be paid via supplemental compensation is 28 days (excluding holidays, weekends) in any calendar year (January 1 through December 31).

Internal Supplemental Compensation

Internal supplemental compensation is any compensation paid through the University to any full-time staff member in addition to his/her base pay. This could include a one-time or on-going special work assignment e.g. overload, consulting work, special projects for home department, special projects for other department in area of expertise as well as payments such as commissions, bonuses, or awards.

Some responsibility for teaching may be a part of the assigned workload of a staff member and may be accomplished without supplemental compensation. If teaching for internal supplemental compensation is requested, it should be done in situations where the assigned workload is exceeded, and is normally limited to one course per semester.

Receipt of internal supplemental compensation for externally sponsored research and service activities are subject to the current policies and regulations of the external sponsor. The following statements describe some of the policies in effect when this document was written.

  1. Staff intending to receive compensation under sponsored programs (e.g., contracts and grants), are to submit a proposal at the time of their request stating that such compensation will be consistent with University policy.
  2. Unless prior written approval is given by the sponsoring agency and the staff member's Vice President, that staff member cannot (1) receive internal supplemental compensation on a project under his/her direction or (2) receive supplemental compensation for the same work.
  3. If federal funds are used, internal compensation for consultation may be paid to staff members by the University only if (1) the consultation is across departmental lines and requires special expertise, or involves a separate or remote operation; (2) the activities involved are in addition to the regular work load of the staff member; (3) and such arrangements are specifically provided for in the agreement and/or approved in writing by the sponsoring agency.

The daily rate for internal compensation should not exceed 115% of the individual’s annual salary, and the pay for teaching a supplemental course will be no more than that for teaching a comparable course during a summer term.

Staff members who engage in conferences, workshops, and seminars through the University's College of Continuing Studies will, except for such activities funded through a grant or contract, receive internal supplemental compensation rates negotiated with that college.

External Supplemental Compensation

External supplemental compensation is any compensation not paid through the University which a staff member receives for professional consulting services performed during an employee’s regular work hours. Staff members shall not (1) make use of property or personnel of The University of Alabama for the purpose of obtaining compensation from sources external to the University, or (2) use or permit the use of the name of The University of Alabama in a way that would suggest that the activity is sponsored or endorsed by the institution, without prior authorization from the President.

A full-time University staff member may not hold an academic appointment with another institution of higher education without written approval from the Provost and Vice President for Academic Affairs.

NOTE: Certain funding sources may require more specific documentation of both internal and external supplemental compensation agreements. Any staff member accepting such sponsorship is presumed to have accepted the conditions of the sponsoring agency. It is the responsibility of the staff member to provide any required documentation.


Each staff member of the University must have prior written approval, using the Approval Request for Supplemental or Occasional Pay form, from the division Vice President for all supplemental compensation activities prior to the work being performed. Requests for such approvals must be submitted to the Vice President through appropriate channels. Vice Presidents requesting supplemental compensation must obtain prior written approval from the President. This form can be accessed from the Payroll Forms and Guides webpage.


An administrative officer who obtains documented evidence that a staff member has violated these procedures or standards should discuss that matter with the individual, submit a written report to the Vice President, and may take whatever steps are needed to ensure compliance.

Reporting Procedures

Each division of the University may develop its own format for reporting and summarizing supplemental compensation activities. Staff members must follow the procedures and formats set by the division to which they are assigned.

Conflict Provision

The terms and conditions of any agreement between the University and external organizations or between the University and particular employees will prevail in the event of any conflict between that agreement and the provisions of this policy


This policy applies to all University staff.


Office of the Vice President of Finance and Operations

Approved by Cheryl Mowdy, Assistant Vice President for Finance and Operations, 11/12/2018