In order to be paid in excess of the annual salary, the employee must be
working under some established, institutionally approved overtime (wage) or
overload (salary) review and approval system.  The RATE of pay should be
the same as the rate for regular full time -- though measuring the amount
of time involved is tricky, so in practice a reasonable approximation can
be reached.  Overload can be justified only for temporary assignments, so
the policy should be clear what is the maximum period an employee may
receive extra pay under the plan.  A plan I'm familiar with, applicable to
faculty (presumably your administrator is a faculty member), approved on a
semester basis with a maximum of two semesters consecutively.  The plan
should explicitly treat both AY and FY faculty.  This will meet federal
allowability criteria (note that most federal contracts explicitly prohibit
"overtime" without prior sponsor approval), and needs to be applied
equally, no matter the source of funds.

It is a separate problem, for management to resolve, whether the worker's
supervisors will allow the extra work load.  This is true whether the
worker is a janitor in B&G or an executive assistant to the President.

I feel your PI has acted most ethically trying to bring the work into the
institution.  If the work is going to get done anyway, and the PI is
refused permission to do it at work as an overload you can expect not only
that the work will be done as a private consultancy, but that word will
spread and other faculty members will "do it at home in their basement" as
consulting any time something comes up.  Senior management may want to
consider this in making their final decxision, as they will be setting long
term policy and affecting the corporate culture.

Good Luck!

Chuck

At 09:05 PM 11/20/98 -0600, you wrote:
>I have often enjoyed the advice given on this listserv.  Now it's time
>for me to ask for help (in a rather lengthy way).
>
>We are a small 4-year undergraduate university and a fairly new
>office so we are still establishing practices and procedures.
>
>Our Associate Provost is concerned about paying 12-month
>employees to do additional work to their regular duties through any
>grants or contracts.  An example would be when an agency hires a
>12-month administrator to analyze some data and produce a
>report.  The administrator ran the contract through the university
>since he knew he was hired as a representative of the university.
>The administrator is already a 12-month employee, so can he
>accept additional pay?
>
>The Associate Provost believes that accepting this additional work
>detracts from the administrator's ability to do his job on campus.
>However, I believe that the job will be done regardless of whether
>the administrator runs the contract through the university or not.
>
>It doesn't bother the Associate Provost too badly if there isn't much
>money involved.  However, can you (or should you) set up a
>system that allows a limit to the amount that can be earned?
>
>Thanks for helping out...(and no, I'm not the 12-month administrator
>described here!).
>
>
>
>Deborah S. Walz, Ed.D.                  xxxxxx@mail.uca.edu
>Office of Sponsored Programs            Phone:  501/450-3451
>University of Central Arkansas          Fax: 501/450-5339
>201 Donaghey Avenue                     Homepage:  http://spo.uca.edu
>Conway, AR 72035-0001
>
Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Comonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
        Sanger Hall, Rm. 1-073
        11th & Marshall Streets
        Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/views/ospa/