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Dual
Employment Policy
Purpose
The
dual employment policy is a statewide uniform policy to be
followed when one state department secures the services of
an employee of another state department on a part-time, consulting,
or contractual basis. It is recognized that conditions vary
widely from department to department, however this policy
will attempt to cover as many different situations as possible
and to strike a sound balance between the interests of the
state, the department, the employee and the public. For employees
engaged on a full time basis, any additional work for other
than a state department is termed secondary employment and
is covered in the State Personnel Manual (Section 1-5.2).
Form CP-30 should be used for reporting purposes involving
dual employment.
Applications
and Exclusions
The
policy applies to all state employees both subject to and
exempt from the provisions of the State Personnel Act and
to all state departments. It does not apply to employees in
the public school system nor to employees of institutions
in the community college system. Employees in these systems
are not state employees (for the purposes of Dual Employment
regulations); they are employed by local boards of education
and local boards of trustees. This policy applies only in situations involving
one employee and two agencies. For situations involving one
employee assuming dual roles within the same agency, see the
State Personnel Manual, Section 7, "Occasional or Sporadic
Employment in a Different Capacity."
Definitions
Parent
department
The
state department, agency, or institution having control over
the services of the employee, and from which the employee
receives his or her regular paycheck.
Borrowing
department
The
state department, agency, or institution seeking, on a temporary
or part-time basis, the services of an employee of another
state department.
Straight-time
employee
Normally,
an employee with a 40-hour per week work schedule, including
employees on
rotating
shifts and those with split shifts. Permanent employees filling
positions subject to the State Personnel Act, with perhaps
extremely rare exceptions, are straight-time employees for
the purposes of this policy statement. Such persons, except
when working odd or split shifts, are considered to be on
their own time between 5:00 p.m. and 8:00 a.m. and on Saturdays,
Sundays, holidays, and while on annual leave.
Variable-time
employee
An
employee, though considered to be the incumbent in a full-time
budgeted position, may be required to maintain on-duty status
(normally, at a fixed work station) for only a limited number
of hours per week. An example of a variable-time employee
is a teacher in an institution of higher education who for
one semester might be scheduled to teach classes for fifteen
hours a week, and for the next semester only ten hours but
with the added duty of advising students. The hours during
which the employee advises might be fixed, or the employee
might have option of scheduling his/her own appointments.
Variable-time employees are considered to be on their own
time except at those hours when they are required to be in
scheduled on-duty status.
Instructional
Contractual Services
The
employment by one higher education institution of a teacher
under contract to another institution: An example of this
practice is the exchange of teachers between two proximate
institutions, such as the North Carolina School of the Arts
and Winston-Salem State University.
Honoraria
Notwithstanding
any definitions previously given or henceforth to be given
to the word "honorarium", any payment by one agency
to an employee of another agency for any type of services
is subject to the procedures of the Uniform State-Wide Policy
on Dual Employment.
Guidelines
Permission
of parent department
The
administrative head of the parent department must give approval
in writing in each instance of an employee's performing services
for pay for another state department.
Approval
should be granted or withheld after a careful weighing of
the circumstances, considering such factors as the character
of the services to be performed, the effect on the morale
of other state employees, the ethical considerations involved,
the temporary loss of the services of the individual to the
parent department, the possibly reduced efficiency of the
individual as a result of fatigue or inattention to primary
responsibilities, the urgency of the situation, possible alternative
arrangements, and other pertinent factors. If the administrative
head of the department is to perform services for pay for
another state department, the Office of State Budget, Planning
and Management must approve the arrangements.
Statement
of employee's immediate supervisor
In
any case of services performed for pay for a borrowing department
during an employee's "own time", the employee's
immediate supervisor must certify in writing that (a) the
actual work and any related travel time will be performed
outside of regularly scheduled working hours, and
(b)
The employee will not use "company time" to prepare
for the services to the borrowing department.
Payment
for services
It
is assumed that certain officials will make outside appearances
and speeches, which are in fact a part of their normal duties,
and such officials should not expect to be paid for these
occasions.
If
payment is to be made for services, the rate must be agreed
upon in advance and may not be increased merely because additional
funds become available. Neither are retroactive payments permissible
to persons who have already performed services without compensation.
Commuting expenses are not reimbursable.
An
employee under contract to an educational institution for
an academic year (normally, nine months) is ordinarily considered
to be a free agent during the summer notwithstanding that
such employee may be paid on a twelve month basis.
Professional
Service Contract
The
state or one of its departments may contract with a professional
corporation for the delivery of professional services by one
or more of its employees who are also state employees as long
as they are in compliance with all other regulations of the
Dual Employment Policy. Historically, this situation has occurred
most frequently in agencies/institutions employing physicians
who, through their private practice, are also working for
another agency/institution through contractual arrangement).
Strict adherence to these policies must ensure that employers
will know if the same person is working at more than one state
job and will be able to see that time which is supposed to
be spent at one job is in fact spent at that job and not at
another job.
Procedures
for Payment
All
payments for services must be made by the borrowing department
directly to the parent department of the employee borrowed,
and not to the employee.
All
payments for services of borrowed employees must be made by
the borrowing department from dual employment line items.
They may not be made from salaries and wages line items. If
funds for part-time services are presently budgeted in salaries
and wages line items, the Office of State Budget, Planning
and Management will give favorable consideration to requests
to transfer these budgeted amounts to dual employment lines
if needed. The same would apply to transfer of funds budgeted
for temporary wages.
Employee's
travel and/or subsistence expenses, if any, incurred in the
performance of services for the borrowing department, will
be paid directly to the employee by the borrowing department.
(Commuting expenses are excluded.)
All
payments to the parent department must include the following:
·
Payment for employee's services.
·
Employer's Social Security contributions computed on
the payment for services.
·
Employer's retirement contribution computed on the
amount of payment from above, if applicable (applicable when
the borrowing agency is merely supporting a portion of the
employee's regular salary; not applicable for additional compensation
beyond the employee's regular salary).
Subject
to negotiation between the two departments, payments may include
an amount for the overhead expenses of the lending department
to cover administrative and other indirect costs; payments
may also include amounts for direct costs incurred by the
parent department, agency, such as identifiable related expenses
for clerical and duplicating services.
If
the work (including preparation) is performed during the employee's
regular work schedule (normally 8:00 to 5:00, Monday through
Friday), and the employee is not on leave, the employee may
not under any circumstances receive additional pay.
Compensation
must be in accordance with the minimum wage and overtime pay
provisions, which require overtime payments of time and one-half
the employee's regular rate of pay for the hours worked in
excess of 40 in the week. However, if during any given workweek
the employee does not perform any work for the parent department,
no overtime payment will be required unless the employee works
more than 40 hours for the borrowing department.
If
a straight-time employee is on authorized leave from regular
duties with the parent department, the employee may be paid
for the extra work on the same basis as in the paragraph above.
In
all cases of additional payment to an employee, the parent
(lending) department must make the payment to the employee
as an addition to the employee's regular pay. This is necessary
to maintain the integrity of the retirement, social security,
and federal and state income tax records.
The
parent department will budget and receive all payments from
the borrowing agency as agency receipts, in an account titled
"Reimbursement-Dual Employment". It is not permissible
to handle such payments as refunds of expenditures. If the
conditions above (no additional pay) apply, any receipt from
the borrowing agency will be handled by the lending department
as an over-realization of the receipts line item.
Maintaining
Records
The
extent of the practice of cross-hiring in state government
must be periodically assessed.
Borrowing
departments must, therefore, maintain the following information
for each instance:
· Employee Information
·
Name of employee borrowed
·
Classification, rank, or title
·
Parent agency of employee
·
Character of services performed (lecture, consultation,
etc.)
· Time (hours and days) employed by borrowing
department:
·
During employee's regularly scheduled working hours
·
During employee's own time
· Amount of payment to parent department:
·
For services
·
For employer's retirement and social security contributions
·
For indirect expenses of parent department
·
For related direct costs of parent department.
Copies
of the parent department head's approval must be attached.
If applicable, the statement of the employee's immediate supervisor
referred to under Guidelines, on page 6, must also be attached.
Instructional
Services
For
this type of regular-session dual employment, (and not applicable
to summer school), the following procedures for payment will
apply where the teaching covers one or more courses for an
entire academic period (quarter or semester):
·
The permission of the administrative head of the parent
institution and/or the teacher's immediate supervisor is implied
and need not be documented.
·
The rate of pay and the amount of any related expenses
must be agreed upon in writing in advance.
·
Any additional salary payment made to the on-loan teacher
for these outside services may be included on the parent institution's
regular payroll and may be paid out of the salaries line item
carrying the teacher's regular contract salary. In these cases
it is not necessary to make payments from "Dual Employment
Wages", and no budget revision is necessary unless the
over-realized receipts from the borrowing agency are required
for a substitute teacher.
·
Ordinarily, any supplemental pay to the teacher for
outside teaching would be handled on the parent institution's
payroll as in the following example, where the regular contract
pay is $1,500 per month and the pay for outside services is
$200: Rate of Pay =$1500; Gross Pay = $1,700.
·
If the parent institution suffers a loss as a result
of the loan of the teacher; the teacher's total compensation
should be adjusted. Example: There is a teacher whose nine-month
salary for teaching four classes per semester is $9,000. By
arrangement, the teaching assignment at the parent institution
for the year is reduced to two classes per semester, but the
teacher will teach two classes at another institution. The
teacher's regular salary would ordinarily remain the same
(the teacher on loan would not receive $13,500) [9,000 + 4,500]
and the borrowing institution would provide one-half of the
$9,000 to be paid. The remaining $4,500 is available to the
parent institution for a substitute teacher.
·
The teacher may not be paid for work not yet performed.
This means that for each pay period the borrowing institution
must send a transmittal (which may be a form letter) and a
check to the parent institution. Form CP-30 will be required
for these additional payments where the affected payroll is
prepared by Central Payroll.
·
The borrowing institution will make payments for services
from a line item titled "Employee on Loan Payments",
transferring funds, upon Office of State Budget, Planning
and Management approval, from salaries line items as required.
Joint
Appointments
It
shall be mutually agreed between departments as to which department
will be the parent department. Normally in most instances
it will be the department who first employed the employee.
In
cases of Joint Appointment (involving base pay) the borrowing
department will reimburse the parent department for matching
social security and retirement contributions. Employer portion
of hospital medical insurance will be borne by the parent
department and not prorated to the borrowing department.
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