Under PPSM, stipends may be granted to recognize temporary performance of higher-level duties or "other significant duties" not part of the employee's regular position. For employees represented by a collective bargaining contract, consult with the contract to determine stipend/temporary reclassification constraints.
An administrative stipend may be paid when a career employee is temporarily assigned the duties of a position in a higher salary grade (defined by salary range midpoint), or when other significant new projects or duties, that are not part of the employee’s regular position, are assigned for a minimum of 30 working days (six weeks) up to a maximum of 12 months in duration.
Stipends should be processed as a percentage of the employee’s monthly rate of pay.
It is management’s responsibility to ensure that the temporary assignment does not exceed 12 months. An extension of a stipend beyond 12 months requires the approval of the Compensation department.
For contract appointment and limited appointment employees, change the contractual rate of pay and/or increase the employee’s FTE percentage.
Stipends for employee’s covered by collective bargaining agreements must be administered in accordance with the appropriate collective bargaining agreement.
The amount of the administrative stipend shall not exceed the amount of salary increase that could be received by an employee if s/he were to receive a permanent promotion to the higher level title, which is typically up to 15%. When recommending an administrative stipend, managers should consider potential internal equity issues.
Administrative Stipends up to 5% are recommended for:
- Employees temporarily performing higher level duties up to 10% time;
- work is lateral but considerably different and outside the scope of the current position and requires up to 10% additional time;
- work is lateral but supervision of 3 or more FTE is added;
Administrative Stipends up to 10% are recommended for employees temporarily performing higher level duties up to 20% time.
Administrative Stipends up to 15% are recommended for employees temporarily performing higher level duties 20% or more time.
Stipends that exceed 15% and/or one year in duration have been previously audited by the UC Regents. Compensation strongly recommends that stipends be capped at 15%.
The sum of the individual’s salary plus the stipend cannot exceed the salary range maximum of the higher level position.
Assignment of temporary duties at a lower level (defined by salary range midpoint) does not warrant a stipend.
Administrative Stipends should not be provided for:
- Assignment of duties at a lower level;
- Additional duties assigned to cover short periods of vacation or other leave;
- Periodic increases in volume when the nature/complexity of duties is at the same level;
- Providing a “training opportunity” to develop an employee’s skills and competencies to perform higher level duties; or,
- When the temporary work being provided would change the FLSA exemption status of the incumbent from non-exempt (typically P2 level) to exempt (typically P3 level). In this case, please request a temporary reclassification of the position.