Budget and Cost Analysis

Effective Date: 07/01/95

Policy Statement 6: Dual Employment


GENERAL

General Information

The State Budget Officer and the State Personnel Director on January 1, 1976, issued a joint directive specifying a revised Uniform Dual Employment Policy to be followed by all State Agencies. This policy statement authorizes State agencies to secure services of an employee of another State agency on a "part-time, consulting or contractual basis" by entering into a dual employment agreement. The term "dual employment" refers to the situation where a specifically identified State employee performs services for a State agency other than his or her parent agency with the specific approval of the borrowing and the parent agencies. The Dual Employment Policy applies to all full-time permanent State employees, both EPA and SPA, and to all State agencies. Any compensation to the employee must be paid by the parent agency through reimbursement from the borrowing agency. The borrowing agency is not authorized to make direct payment to full-time permanent employees of another State agency.


Purpose

Dual employment should be used for emergency and one-time service requirements and not for continuing arrangements except where valid joint appointments are involved. Dual employment should be used to authorize employees with special skills and abilities to participate in a loan arrangement between the parent and borrowing agencies in such a manner as to strike a sound balance between the interests of the State, the agencies, the employee and the public.


Propriety

Approval of dual employment agreements should be granted or withheld after carefully considering such factors as the character of the services to be performed, the effect on the morale of other State employees, ethical considerations, the temporary loss of the services 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.


Exemptions From Dual Employment Regulations

The following are not considered State agencies and their employees are exempt from the policy:


Alternatives to Dual Employment

Administratively, compliance with the accounting and payroll requirements of the Uniform Dual Employment Policy is complex. When a University department finds it necessary to borrow or lend employee services to or from another State agency, that department should make every reasonable effort to avoid dual employment arrangements. For SPA employees, dual employment arrangements will be approved only by the University Personnel Director, after the department and the University have exhausted all other alternatives. Under such circumstances, the department should contact the Budget Officer handling its funds for assistance in using one of the following two methods for handling services between agencies without involving dual employment:


UNIFORM DUAL EMPLOYMENT DEFINITIONS

Parent Agency

The State department, agency, or institution having control over the services of the employee and from which the employee receives his regular paycheck is the parent agency.


Borrowing Agency

The State department, agency, or institution seeking on a temporary or part-time basis the services of an employee of another State agency is the borrowing agency.


Permanent Full-Time Employees

Normally, an employee with a 40-hour workweek schedule is a permanent full-time employee. This includes employees on rotating shifts and those with split shifts.


Interagency Contractual Services

The employment by a borrowing agency of an employee under contract to another agency on a permanent full-time basis (or 40 hours) through a dual employment agreement with the employee's parent agency is classified under the heading Employee on Loan Payments. Dual employment also includes a joint full-time appointment agreement between a parent agency and a borrowing agency where there is an agreement to split the regular time and/or effort of the employee between the agencies.


SPECIAL RULES GOVERNING DUAL EMPLOYMENT

Joint Appointments

Joint appointments are considered dual employment arrangements with the initial hiring agency being the parent agency and the subsequent hiring unit being the borrowing agency.


Nine-month Appointments (EPA Employees)

An employee under contract to an educational institution for an academic year (normally nine months) is ordinarily considered a "free agent" during the summer, notwithstanding that such employee may be paid on a twelve-month basis. An employee is not subject to the Dual Employment Policy while a free agent. A nine-month employee is not a free agent and not exempt if he receives additional salary from his parent institution for summer employment.


Temporary and Part-Time Employees Excluded

Any temporary or permanent part-time employee of a State agency may also be a temporary or permanent part-time employee of another State agency and still be excluded from dual employment procedures. To be excluded, the work for two or more State agencies must not add up normally to be a full-time (or 40 hours) standard workweek. However, each agency employing such an employee is responsible for seeing that the employee is not allowed to work, without appropriate overtime pay, more than forty (40) hours in a standard workweek for all State agencies.


East Carolina University Student Employees Excluded

An East Carolina University student employed on a part-time basis by the institution at which he is enrolled and regularly attending classes is classified as a student employee and is not covered by the Dual Employment Policy. He is handled by all other State agencies as a temporary employee. However, each State agency employing a student employee, as well as any other employee covered by the State Wage-Hour Policy is responsible for seeing that the employee is appropriately compensated for any hours worked over a combined 40 hour workweek.


Additional Pay

If payment is to be made for services, the rate must be agreed upon in advance in writing 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 just because funds become available.

If the work (including preparation) is performed for a borrowing agency outside the employee's regular work schedule, the employee may receive additional pay. Employees subject to the State Wage-Hour Policy must be compensated for the combined number of hours worked during a workweek at both the parent and the borrowing agency. Such compensation must include overtime payments of time and one- half the employee's regular pay rate for any hours worked in excess of 40 on one workweek.


No Additional Pay

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.

No employee while on paid leave may be paid additionally for services performed for the employee's parent agency.

If the work is performed during the employee's regular work schedule and the employee is not on leave, the employee may not under any circumstances receive additional pay.

Commuting expenses to the borrowing agency are not reimbursable to the employee or to the parent agency.


APPROVAL REQUIREMENTS

General Information

An officer acting for the administrative head of the parent agency, and in like manner for the borrowing agency, must signify approval in writing in each instance of an employee performing services for pay for another State agency.


University Personnel Department

For the Dual Employment of SPA employees, prior approval is required from the University Personnel Director.


President

If the Chancellor is to perform services for pay for another State agency, he will first obtain the approval of the President of the University.


BORROWING AGENCY RESPONSIBILITIES

Payments for Services Charged to Employee on Loan Payments

All payments for services of borrowed employees must be charged by the borrowing agency under Employee on Loan Payments. They may not be charged to salaries and wages object codes, but the Office of State Budget will give favorable consideration to requests to transfer budgeted amounts from salaries and wages object lines to contractual services lines if needed. The same would apply to transfer of funds budgeted for temporary wages.


Compensation To Parent Agency

The borrowing agency will compensate the parent agency (note the employee) for the following costs:

The borrowing agency will reimburse the employee directly for any travel and/or subsistence expenses related to the performance of services for the borrowing agency. Such reimbursements are subject to State travel policies. Commuting expenses between the parent agency and the borrowing agency are not reimbursable.


Time Records

Time records will be forwarded by the borrowing agency to the parent agency when the employee being borrowed is covered by the State Wage-Hour Policy. To assure compliance, time records will be required for all SPA employees and for those EPA employees subject to the overtime provisions of the State Wage-Hour Policy.


PARENT AGENCY RESPONSIBILITIES

Employee Compensation

The parent agency in all cases will be fully responsible for the employee's compensation. The employee will remain on the parent agency's payroll. All payments for services must be made by the borrowing agency directly to the parent agency of the employee borrowed, not to the employee, and it will include appropriate employer's matching Social Security. In all cases of supplemental payment to an employee, the parent agency must make the payment to the employee as an addition to his or her regular pay.


Administrative Expenses

All administrative expenses will be borne by the parent agency unless such amounts are significant and prior approval has been obtained.


Medical & Hospital Insurance

The parent agency will be responsible for covering 100% of the medical and hospital insurance contributions of the employer. These costs will not be reimbursed by the borrowing agency.


Time Records

Time records will be required by the parent agency from the borrowing agency when the employee on loan is covered by the State Wage-Hour Policy. To assure compliance, time sheets will be required for all SPA employees and for those EPA employees subject to the overtime provisions of the State Wage-Hour Policy.