OUTSIDE EMPLOYMENT AND EXTRA COMPENSATION

Full-time employment with East Tennessee State University (ETSU) demands an individual's full-time professional expertise, commitment, and energies, and the assigned teaching load of an ETSU faculty member constitutes a full-time assignment. However, the ETSU recognizes the value to its students, its personnel, and to the citizens of Tennessee that arises from outside consulting and other professional experiences in which members of the faculty and staff may engage. Such activities contribute to the economic development of the state, enhance the reputation of the institution and its faculty, promote the fuller utilization of the University's capabilities to assist society in meeting its needs and problems, sharpen faculty skills in applied research and problem resolutions, encourage faculty to remain current in there area of expertise, provide examples of practical applications to enrich classroom activities, and aid in both recruitment and placement of students. These activities also create valuable links between the institutions and their communities.

Outside professional experiences, however, are always governed by three salient rules. First, these services cannot interfere with regular University duties.  Second, the name and facilities of the University cannot be used to advertise any kind of private professional services.  Third, performance of these services may not constitute a conflict of interest or compete with the institution’s education, research, or public service programs.

ETSU also recognizes that, under certain conditions, employees may be requested to perform additional assignments for which extra compensation may be warranted. ETSU sets forth the following general provisions to cover the circumstances and limitations under which outside employment and/or extra compensation may be appropriate.

As defined herein, this policy does not apply:

1. To personnel classified as nonexempt wage and hour employees;
2. To normal, short term professional activities such as participation in symposia, accreditation visits, grant review panels, academic speaking engagements (e.g. sponsored talk at a convention, visiting professorship, keynote speaker at a symposium), exhibitions, or recitals, even though honoraria may be received for such participation;
3. When the individual is not within the term of his or her contract period (e.g. summer for employees on an academic year contract), or is on leave;
4. To salaries paid to academic-year employees for teaching in inter-session and summer session, which are not considered extra compensation.

Private Consulting

1. On at least an annual basis employees to which this policy applies who plan to engage in outside employment during the term of employment specified in the employee’s contract shall notify appropriate supervisors and the president, or his or her designee, of the nature of the employment and the expected commitment of time. This shall be done using Form PPP-07 Request for Outside Employment.
2. As required by Tennessee Board of Regents Policy 5:01:05:00 prior to accepting an extra assignment, the faculty or staff member shall have the approval of the institution's President or designee.

a.       At ETSU the employee’s immediate supervisor, such as the department chair, and the person to whom the immediate supervisor reports, such as the dean of the college serve as the President’s designees.

b.      Their approval of the extra assignment will be indicated by appropriate signatures on FORM PPP-07 Request for Outside Employment.

c.       If the immediate supervisor and/or that person’s supervisor refuse to approve the extra assignment the staff member may appeal to the ETSU Faculty or Staff Senate as appropriate which body shall constitute an ad hoc committee to review the appeal and make a recommendation to the President of ETSU whose decision shall be final.

3. The President or designee may approve outside service and extra service only for efforts that:

a.       Are performed entirely outside of, and in addition to, normal working assignments and responsibilities;

b.      Do not interfere with assigned duties and responsibilities or with regular institutional operations;

c.       Are consistent with Tennessee Board of Regents policies and guidelines and with state law.  For example, TCA 49-5-410 limits full-time faculty members to teaching no more than two credit courses per semester for extra pay in an institution of higher education other than the one that employs them. Additionally, 20 TCA 49-5-410 limits faculty to 15 clock hours per week, or 400 clock hours per nine-month period, for extra pay;

d.      Do not constitute a conflict of interest or compete with the institution's education, research, or public service programs;

·         All individuals considering outside service shall read the ETSU Policy on Conflict of Interest (Faculty Handbook 1.17) and if a Conflict of Interest is suspected shall follow the procedures presented in that policy.

e.       Require only a reasonable time commitment from the employee

f.       Are not undertaken with an inappropriate claim that the individual is officially representing the institution in connection with the employment.

4. Use of University Facilities.  The departmental chair and college dean will decide, subject (where appropriate) to final approval by the President, whether or not the University should accept a request for specialized services that require University facilities, equipment, or any other expenditure.

a.       If the departmental chair and the college dean agree that one or more faculty members may provide the service without interfering with their regular duties, the faculty member or members will then make arrangements with the Business Office to pay for equipment and material. This money will be credited to departmental accounts.

b.      In addition, if released time is necessary, the sponsoring group will pay for the regular assignments from which employees are released. These amounts will be paid directly to the University Business Office.

c.       On occasion it may be appropriate for the Business Office to delegate responsibility for collecting charges to a department, clinic, or bureau. If so, all receipts will be audited by the Business Office and credited to the proper account.

d.      A licensed business established by a University employee for the purpose of making a profit must be operated as a private business. Neither University facilities (including workspace, materials, and/or equipment), time, nor services required of University personnel are to be used in pursuit of objectives of the business.

5. Fees to be received for private consulting and services are negotiated between the faculty member and the client, being subject to no University claim beyond reimbursement in full for the use of University services.
6. It often arises that professional activity will generate pecuniary gain to the individual. For example, the publication of a text might well produce royalties that will accrue to the author. It seems consistent and economically rational for the individual to have proprietary rights on said royalties. Therefore, subject to the ETSU Policy on Patents and Copyrights, any pecuniary gain arising out of professional activity will be the property of the individual being subject to no University claim beyond reimbursement for the use of University facilities and services. Exceptions to the above are those that conflict with other University policy. Royalties from a faculty member's own book or materials used within this institution will be donated to any ETSU student scholarship fund.  The faculty member making the donation of royalties will have no input into selection of individual recipients of the scholarships awarded from this fund. 

Employment by Agencies, Departments or Institutions of the State of Tennessee

1.      If the employment involves other agencies, departments, or institutions of State government, it is subject to prior approval of the President, Director, or appropriate representative of the other agency, department, or institution. Services rendered by a ETSU employee to another state agency or institution of higher education will be paid by the contracting agency to the institution pursuant to TBR Guideline G-030 by means of a dual service agreement.

Overload Assignments

1. Faculty acceptance of overload assignments, for instruction or other purposes, is strictly voluntary. Overload assignments should be employed only when situations arise which warrant such action. Overload assignments should not be employed on a regular basis or in lieu of hiring qualified faculty or instructors. Supervisors must be careful to protect untenured faculty when making overload assignments and should make every effort to distribute overloads fairly as staffing needs allow.
2. The minimum rates per credit hour of instruction, as articulated in Tennessee Board of Regents (TBR) Guideline P-055 must be applied when calculating compensation for extra service for full-time faculty or staff teaching credit courses at community colleges or universities. Compensation for extra service must be commensurate with the instructor's highest degree, rank, and experience, within their academic unit at their institution.
3. With the approval of the Chancellor, Presidents or their designees may approve exceptions to these minimum rates when circumstances warrant. Presidents or their designees may approve rates that are greater than those stated in TBR Guideline P-055 as long as the rates are applied consistently for similar faculty (degree, rank and experience) within the same academic unit.
4. The minimum rates per clock hour of instruction, as articulated in TBR Guideline P-056 must be applied when calculating compensation for extra service for full-time faculty or staff teaching at technology centers. Compensation for extra service must be commensurate with the individual's highest degree, rank, and experience, within their academic unit at their institution.
5. With the approval of the Chancellor, Directors or their designees may approve exceptions to these minimum rates when circumstances warrant. Directors or their designees may approve rates that are greater than those stated in TBR Guideline P-056 as long as the rates are applied consistently for similar faculty (degree, rank and experience) within the same academic unit.

Source:  Tennessee Board of Regents Personnel Policy No. 5:01:05:00; approved by Academic Council on August 7, 2008 and the University President on August 19, 2008.