Non-Salary Compensation for Employees Exempt from the State Human Resources Act

University Policy: 
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Executive Summary: 

This policy provides that the Board of Trustees is authorized to determine items of non-salary compensation for the Chancellor, and that the Chancellor is authorized to determine such items for other employees.

In order to remain competitive with other comparable institutions of higher education in its employment practices, it is the policy of the University of North Carolina at Charlotte to make available to employees exempt from the State Human Resources Act (EHRA employees), on a case-by-case basis, certain reasonable and customary non-salary compensation in addition to the routine fringe benefits offered to all EHRA employees.

Procedures

Chancellor

The President of the University of North Carolina makes all decisions about the Chancellor’s non-salary compensation.

The University shall report any non-salary compensation provided under the terms of this policy to the Internal Revenue Service on the Chancellor’s W-2 form for income tax purposes. Generally, the funding source for such non-salary compensation must be from non-state funds.

Employees Other Than the Chancellor

At the discretion of the Chancellor and in accordance with reasonable and customary business practices, certain non-salary compensation may be granted to faculty and non-faculty EHRA employees in addition to the routine fringe benefits offered to all EHRA employees. The Chancellor’s decisions concerning non-salary compensation may be based on any reason or reasons considered relevant to attracting or maintaining a faculty and staff of the highest possible quality. However, no such decision may be based in whole or in part on any illegal factor such as the employee’s race, sex, religion, national origin, age, disability, or veteran status.

The University shall report any non-salary compensation provided under the terms of this policy to the Internal Revenue Service on the employee’s W-2 form for income tax purposes. Generally, the funding source for such non-salary compensation must be from non-State funds.

Approval by the Chancellor is required prior to granting any non-salary compensation to an EHRA employee. The Chancellor may approve such non-salary compensation either explicitly on a case-by-case basis or by approval of policies that pertain to all EHRA employees in certain categories.

Revision History: 
  • Initially approved by the Board of Trustees September 27, 2002
  • Updated March 21, 2016

Authority: Chancellor

Responsible Office: Business Affairs/Human Resources

Related Resources: