A stipend is additional compensation paid to an employee in addition to their base salary. It's provided as compensation for performing temporary higher-level duties, or significant or varied duties outside the scope of their PDQ. Work is performed within the employee’s department or division.

Appropriate Uses for Stipends

A stipend is appropriate for the temporary assignment in the following cases:

1. Interim appointment to a higher level position: An interim appointment may be assigned to an administrative faculty member when a vacancy occurs and/or a critical business need is identified. 
2. Higher level duties: Assignment of duties of a significant nature typically performed by a role in a higher level position.
3. Additional duties: Assignment of duties, typically at an equivalent level or lower level, and beyond the scope of the employee’s current PDQ. 
4. Special project work or leadership responsibilities assigned by university administrators: Assignment of duties to work on a project or leadership responsibilities for a limited period of time which are not covered under the assumed scope of the position.

Inappropriate Uses for Stipends

1. Reward for performance: A stipend is permissible for the assignment of temporary duties as outlined in the section above. It is not intended to reward good performance. 
2. Working more than 40 hours in a week: Under the Fair Labor Standards Act, exempt employees are not paid on the basis of the number of hours worked. Exempt employees are expected to meet operational needs and are evaluated on results achieved. Additionally, many roles require flexibility and adaptability. Employees may be expected to take on additional tasks as needed to support the team or organization without financial reward.
3. Direct report duties: Stipends will not be provided for duties taken over from direct reports.
4. Temporary assignment of work is performed outside of the employee’s department or division: In certain cases when an employee has a temporary assignment to perform work outside the scope of their current role and outside of their department or division, they may be eligible for Compensation in Excess of Base Salary. Contact the Office of Academic Resources for more information.
5. Natural progression of work: As an employee gains expertise in their role, they are able to perform at a higher level. This may include task assignments that are considered within the scope of their responsibilities but not necessarily outlined in their PDQ.