X-7 Employment Outside the University Setting

NORTHWESTERN STATE UNIVERSITY

Employment Outside the University Setting

I Purpose and Scope: To outline the procedures for approval for employment outside the university setting.

II Reference: Rules (bylaws, and policies and procedures) of the Board of Supervisors for the University of Louisiana System, Chapter III, Section VII. Outside Employment of College and University Employees and NSU Faculty Handbook, Chapter 2 page 15.

System Office Memorandum

OUTSIDE EMPLOYMENT BY UNIVERSITY EMPLOYEES

I INTRODUCTION

The Board of Supervisors for the University of Louisiana System recognizes that certain outside employment activities are of benefit to its System institutions, to the State of Louisiana and to the private sector, as well as to its individual employees. Although the Board recognizes a right of employees to engage in outside employment, as required by L.R.S. 42:1123(9), it has established policies and procedures requiring that such outside employment be disclosed and submitted for administrative review and approval.

A. All full-time employees of the System including faculty, other academic, unclassified and classified, are required to abide by this memorandum at all times, including during regular and summer term and while on paid or unpaid leave.

B. Outside employment is defined as any non-University/College activity for which economic benefit is received, including but not limited to:

1. Employment with any non-University employer.

2. Contracts to provide consulting, personal or professional services to non-University individuals or entitles, including publishing agreements or arrangements.

3. Self-employment or operation of a business.

NOTE: IMMEDIATE FAMILY
In accordance with compliance with LA R.S. 42:1102(13), the University has implemented procedures to disclose the name of any business an employee or any member of his/her immediate family wholly owns or has an economic interest in. Immediate family is defined in LA R.S. 42:1102(13) as children, brother, sisters, parents, spouse, and the parents of spouse. Disclosure of this information is necessary for the University to make a determination as to the possible violation of LA R.S. 42:1102(13) due to participation in certain transactions, if any, involving the university and these businesses. See LA R.S. 42:1112 for additional information on participation in certain transactions involving the University.

C. Economic benefits include cash payments or such other non-cash economic benefit, e.g. share of profits, shares of stock, equity participation, etc. as the employee and outside employer may agree; provided that such non-cash economic benefit shall not have a present value significantly in excess of fair compensation for the services rendered. Compensation rates for outside employment need not be related to University salary rates but should be negotiated fairly based on normal private sector levels for similar services.

D. Outside employment shall be performed only outside of assigned working hours or responsibilities, or during a period of paid or unpaid leave. During said sabbatical, special or educational leave, outside activities may be permitted only in exceptional circumstances, and only in accordance with Board Rules and State Law.

E. Outside employment shall not conflict, delay, or in any manner interfere with instructional, scholarly and/or other services which the employee is obligated to render to the University.

II OUTSIDE EMPLOYMENT WHICH WILL BE CONSIDERED FOR APPROVAL

The following types of outside employment will be considered for approval:

A) General consulting, other outside employment or business activities.

B) Serving as an expert witness in an area based upon the employee's training and experience.

C) Consulting on a non-University research project. A University employee may be engaged as a consultant on a non-University research project or projects conducted by an outside employer, provided the employee neither supervises the research nor performs the research.

III OUTSIDE EMPLOYMENT WHICH WILL NOT BE APPROVED

A) A University employee may not receive compensation to assist in the passage or defeat of legislation during the fiscal year in which the legislation is pending in the legislature, except from the Louisiana Legislature or any department, institute or agency within the Legislative branch.

B) If the University employee supervises non-University research or performs the research, he/she is considered a participant or a part of the outside research team rather than a consultant. In such instances, the employee may not be employed by, nor contract directly with the outside agency unless it is not feasible or practical to seek a contract through the University under established procedures for sponsored research, as determined by the appropriate University President.

C) Blanket approvals for outside employment will not be granted.

D) Employment or contractual relationships which are considered to be a violation of the Louisiana Code of Governmental Ethics will not be approved.

IV EMPLOYEE RESPONSIBILITIES

Full-time employees contemplating outside employment or currently engaged in outside employment shall:

A) Disclose outside employment in accordance with this Issuance, and procedures established therefor.

B) Submit a list of all contracts or other agreements between the University and the outside employer in which the employee is involved on behalf of the University. Such list is to include, to the extent the information is known to the employee, the owners, directors, majority shareholders, or affiliates of the outside employer. Additional information about such contracts may be required by the University upon request.

C) Provide notification to the outside employer that he/she accepts such employment as an individual, and not, in any manner, as a representative of the University. It is recommended that employees do this by including with any oral testimony or written reports, a statement to the effect that the views expressed are those of the employee and do not necessarily reflect the views of the University. In no case may the individual concerned use the name of the University or his/her University affiliation, title, or address officially or in any other way in support of any position he/she may take. Biographical data, including a statement of employment by the University of Louisiana System Board of Supervisors, may be included as introductory material to written reports or orally in the case of expert witness statements, but may not be incorporated into the body of the written report.

D) Comply with any other provisions of this Issuance.

V APPROVAL LEVELS

Certain types of outside employment require approval of the University President and/or the System President as follows:

A) Approval by the University President. Under the Louisiana Code of Governmental Ethics, certain outside employment requires review and approval by a President and may be approved only for academic, administrative and professional employees.

1. Outside employment which requires approval of the University President includes:

a. Outside employment with an individual or entity currently doing or actively seeking to do business with the employee's unit at the University or under circumstances in which the employee is collaborating with, or on special assignment to , a unit within the University with which the entity is doing or is actively seeking to do business.

b. Outside employment involving teaching which will result in university level credit for the student, which will be conducted on University time, or which will utilize University property, services, or resources.

c. Outside employment which ordinarily would be performed as part of the public service aspect of the University insofar as that employee's job duties and responsibilities are concerned.

d. Outside employment yielding results which advance a theory or practice in the employee's field.

e. Outside employment activity which could be accomplished more appropriately by a contract through the University. This activity shall be the subject of a University contract unless it is not feasible or practical to do so.

f. Outside employment activity for an individual or entity that has substantial economic interests which may be materially affected by the way in which the employee performs his or her duties and responsibilities as a University employee.

2. If such proposed outside employment is with a third party that is contracting with or is seeking to contract with the University, the employee must remove himself or herself from any relationship in which he or she would:

a. Approve payments by the University to the third party pursuant to any contract between the University and the third party.

b. Evaluate any work performed by the University pursuant to a contract between the University and the third party.
c. Negotiate and/or approve any subsequent contract between the University and the third party.

d. Approve the purchase of University equipment pursuant to the contract with the third party in an amount in excess of $2,000.

The above actions must be carried out by the employee's immediate supervisor, and that approving supervisor's next immediate supervisor.

3. Outside employment requiring the approval of the University President also requires a written agreement between the employee and the outside entity which shall contain the following explicit information:

a. General technical area of endeavor.

b. Specific employment or consulting activities.

c. Duration of employment agreement.

d. Estimated time in hours per week or days per month required for the employment.

e. Employee's hourly or daily compensation rate, method of payment, and total estimated compensation to be received.

f. Statement that agreement is between employee and outside entity, that employee is not acting as an agent of the University, and that the University bears no liability in the relationship.

g. Statement that the use of the University name in connection with the employment activities shall only be upon written authorization of the University.

h. Statement that the rights to any intellectual property, i.e., inventions, materials subject to copyright, etc. resulting from the employment activity, to the extent that they would vest in the employee in the absence of any other agreement, will be assigned to the prescribed by Chapter III, Section VI, of the Bylaws, Policies and Procedures of the University of Louisiana System Board of Trustees, and such other University policies as may be applicable.

4. The outside entity and the employee shall negotiate and draft an agreement meeting all of the requirements herein. If the contract involves consulting with respect to research or technology, the appropriate University office primarily responsible for licensing and transfer of technology, e.g. Office of Research, Office of Technology Transfer, etc. should be consulted during the negotiating process. If the contract involves trade secrets and commercial or financial information obtained from the outside employer pertaining to research or to the commercialization of technology, such information may be removed from the agreement before its submission for administrative review.

5. For such agreements, the University President must certify to the following prior to the execution of any contract approved pursuant to this policy:

a. The outside employment activities are not within the employee's duties and responsibilities to the University for which the employee is being compensated by the University.

b. The outside employment activities do not conflict, delay, or in any manner interfere with instructional, scholarly, and/or other services which the employee is obligated to perform for the University.

c. The consulting activities to be performed are within the academic or professional discipline of the employee or are related to the area of expertise in which the employee is employed by the University.

6. Following approval and execution, the appropriate University President shall receive a copy of the executed agreement. Copies of approval forms, certifications and the executed agreement shall be kept in a permanent file by the President or his designee until at least three years beyond the expiration of agreement.

B. Approval by the System President. The following type of outside employment require review and approval by the System President in addition to campus approval:

1. Outside employment of a University President

C. Approval by President or Designated Administrative Officer. All other outside employment may be approved through normal administrative channels by the University President or by a campus administrative officer designated by the University President.

D. Joint Appointments. If the outside employment involves employees from more than one department or campus, or if it involves an employee holding joint appointments, action by the appropriate administrative officers or the affected campuses if required.

II USE OF UNIVERSITY EQUIPMENT, MATERIALS, OR SERVICES

The appropriate campus administrators, including chairs, directors, deans, and vice president, are responsible for determining the circumstances under which University personnel, laboratories, services, and equipment may be used in connection with outside employment of University employees. When University owned facilities, equipment or other resources are needed or required for any reason, a contract between the University and the private third party may be executed separately. Compensation to the University must be paid at the fair market rate, or, if different, at the same rate that such services, facilities, equipment or technology would be available to any qualified non-university user.

VII PROCEDURES

Each campus head shall develop such written procedures and approval forms as are necessary to provide for compliance with this policy and submit such campus procedures and approval forms to the System President for review and approval.

VIII REPORTING REQUIREMENTS

Annually, each University President shall prepare an information report listing all outside employment approved by him/her and currently in force under this policy and any other details which may be requested. Copies of this report shall be sent to the System President.

IX CODE OF ETHICS REQUIREMENT

Compliance with the provisions of this policy is required by the Louisiana Code of Governmental Ethics. Violation of this policy may result in a violation of the Ethics Code and penalties applicable thereto and/or appropriate sanctions by the University and/or the Board of Supervisors for the University of Louisiana System. All employees, both full-time and part-time, are reminded that they are subject to the Ethics Code.

1. Employee Request for Approval for Employment Outside the University Setting

Certifications

In accordance with Rules (bylaws, and policies and procedures) of the Board of Supervisors for the University of Louisiana System, Chapter III, Section VII, each employee is certifying for each outside employment activity that they are complying with the Board of Supervisors' Statement of Policy and Outside Employment as follows:

1. A member of the faculty or staff may engage in outside activities, paid or unpaid, which do not conflict, delay or in any manner interfere with instructional, scholarly, and/or other services he must render in the nature of his college or university employment.

2. A full-time member of the faculty or staff who is presently engaged, or who plans to engage, in such activities outside of his broad institutional responsibilities, during any period of full-time employment by the institution, shall report to the chairman or head of his department in writing the nature and extent of such activities, and the amount of time the work will require. In all such instances, the department head or chairman shall forward the report to the employee's administrative superior who will make a complete disclosure of these facts to the campus head or his designee. A similar procedure shall be followed by deans in reporting to their vice presidents and by vice presidents in reporting to their president.

3. No full-time member of the faculty or staff shall engage in such outside employment (or continue such employment if already so engaged) without the written approval of the department head and dean. If he believes that such outside employment involves, or may involve, a matter of public interest or interfere with duties to the institution, the matter shall be referred through the appropriate channels to the president of the college or university or his/her designee for approval.

4. It is the responsibility of the employee to make clear to any outside employer that in accepting such employment he does so as an individual independent of his capacity as a member of the staff of the college or university. This might best be accomplished by providing with oral testimony or written reports, a statement to the effect that the views expressed are those of the employee and do not necessarily reflect the views of the institution. In no case should the individual concerned use the name of the institution or his college or university title officially, or in any way, in support of any position he may take.

5. The institution recognizes the fact that a person qualifies as an expert because of his training and experience. Therefore, biographical data, including a statement of employment by the college or university, may be included as introductory material to written reports (but not incorporated in the body of the written report) by the outside employer, or orally in the case of expert witness, by way of establishing the writer as a qualified expert.

Furthermore, certifies:

1. I am not rendering services for compensation to any person that I know or reasonably should know, either has or is seeking to obtain control of business or financial relationships with my agency (academic or administrative unit), has or is seeking control of other business relationships with my agency, or has other business relationships with my agency, or has interests that may be substantially affected by the performance or nonperformance of my official duties.

2. I am not being directly compensated by a prohibited non-public or public source for the performance of any service that forms a part of the duties, responsibilities, or program of my agency.

3. I am not being compensated from a non-public source, excluding foundations and recognized alumni organizations, for the performance of any of my public responsibilities and duties. Any payments from foundations and recognized alumni organizations are being processed through the university.

4. I comply with restrictions on participation in certain transactions involving the university as defined in R.S. 42:1112, including participation in a transaction involving the university and any member of my immediate family. Immediate family is defined in R.S. 42:1102. (13) as children, brothers, sisters, parents, spouse, and the parents of the spouse.

5. I comply with all other Ethics Codes applicable to my University employment.

6. I am involved in no activities that preclude my fulfilling duties as assigned by my institution.

7. I comply with the Dual Office Holding and Dual Employment law in accordance with R.S. 42:61, et seq.

8. I have reported or am reporting to the University all outside public source and non-public source employment or self-employment including the owner/ownership of company/entity.

III Responsible Area: Business Affairs - Human Resources

IV Procedure:

Outside Agency/Entity

1. Notifies NSU employee of the need of services.

Employee

2. Before making a commitment to perform services, request approval by completing Approval for Employment Outside the University Setting (Disclosure of Outside Employment) (Attachments at end on procedure).

Provide:
a. Description of activity/service
b. Time requirements
c. Compensation
d. Name of company/entity owned or working for
e. Other relevant facts (to support and explain request).

NOTE: Compensation is required to be disclosed for all outside employment requiring review and approval by the University President and System President in accordance with this policy and procedure. See Section V, Approval Levels, of this policy and procedure.

After review by the appropriate vice president, as required by this policy and procedure, activities considered to require approval by the University President and/or System President, in accordance with Section V, Approval Levels, of this policy and procedure, will require compensation to be reported if not initially reported by the employee.

3. Forwards documents to supervisor for review and approval.

Supervisor

4. Reviews request. If approved, forwards to Budget Unit Head. If disapproved, discuss disapproval with employee.

Budget Unit Head

5. Reviews request. If approved, forwards to appropriate Vice President. If disapproved, discuss disapproval with employee and supervisor.

Appropriate Vice President

6. Reviews request. If approved, forwards to President or designee. If approved, discusses disapproval with Budget Unit Head.

President or Designee

7. Reviews request. If approved, signs and returns to appropriate Vice President. If disapproved, discusses disapproval with appropriate Vice President.

Appropriate Vice President

8. If approved, routes copy of approved request to employee through Budget Unit Head, Supervisor, etc.

Sends approved original request to Business Affairs - Human Resource Section.

If disapproved, discusses disapproval with Budget Unit Head. Budget Unit Head informs supervisor and employee.

Business Affairs - Administrative Coordinator

9. Date stamps reverse side of original "Approval for Employment Outside the University Setting" (Attachment at end of procedure) received from appropriate Vice President. Forwards to Director of Human Resources.

Director of Human Resources

10. Reviews "Approval for Employment Outside the University Setting" for completeness and proper signatures. If all information and approvals are correct, provides copy of form to Business Affairs - Purchasing Section in order to compare University's Vendor File to employee's outside business ownership and/or employment.

If information is incomplete or necessary approvals are not received, returns form to appropriate Department Head for correcting and re-submittal.

11. Reports any apparent violations to Vice President for Business Affairs, appropriate Vice President and President for resolution.

12. Files original approved "Request for Employment Outside the University Setting" in respective employee's personnel file. Files copy in Human Resource Section file for respective fiscal year to be used in positive response "Schedule of Certifications" (Attachment at end of procedure) report.

NOTE: As provided by R.S. 39:1498.2 (A), "state agency personnel in the medical, nursing or allied health fields, state employees who are qualified to serve as interpreters for the deaf, faculty members of public institutions of higher education, and state employee selected to serve as instructors in the paralegal studies course of the division of continuing education at a state college or university may be employed by other state agencies through a contract for professional, personal, consulting, or social services in accordance with rules and regulations adopted by the Office of Contractual Review".

There is a restriction on faculty members contracting for the design or redesign of a state-owned facility. Other non-faculty personnel are prohibited from entering into a contract for professional, personal, consulting, or social services with another state agency.

As provided by R.S. 39:1498.2(b), "each professional, personal, consulting, and social service agreement between a governmental body as defined in R.S. 39:1484(11) and a faculty member of any state college or university shall be subject to the written approval of the President of the college or university which employs the faculty member, and written notification of agreement and approval shall be given to the appropriate management board.

Budget Unit Head

13. Review work schedule with employee to assure that the outside employment does not interfere with assigned duties.

14. Complete Request for Leave (Attachment at end of procedure) if time during the employee's work schedule is required to perform the outside employment.

NOTE: Request for Leave for time during the employee's work schedule should be completed and approved before outside employment is begun.

NOTE: The employee's work schedule cannot be adjusted simply to accommodate employment outside the university setting. Leave must be requested.

15. Provide for the continuation of the responsibilities of the employee if outside employment requires employee leave.

Employee

16. Performs approved task/employment in accordance with the Board of Supervisors for the University of Louisiana System, Policies and Procedures for Outside Employment of College and University Employees, and the University Faculty Handbook.

2. Annual Certification of Employment Outside the University Setting

Annual Certification

Each year the appropriate Vice President(s) shall submit a report of employee activities to the campus president for review and approval for submission to the System Office.

Annually, the request for Annual Certification of Employment Outside the University Setting is routed through e-mail to each employee to report employment outside the university.

The period to be reported is the twelve month period April, 20XX through March 30, 20XX. The Certifications are due in Business Affairs-Human Resources Section on April 15, 20XX. The Certification of Employment Outside the University Setting (Attachments at end of procedure) are distributed through the University's e-mail process.

Director of Human Resources

1. Annually issues "Request Memo", "Annual Certification of Employment Outside University Setting"  and Outside Employment Activities Certification form (Attachments at end of procedure).

Employee

2. Completes the Outside Employment Activities Certification form (Attachment at end of procedure):

a) list each activity
b) sign & date form
c) list Budget Unit/Department assigned to and account number

3. If the employee is engaging in any reportable activity for which prior approval has not been requested,

1. list each activity on the Outside Employment Activities Certification form (Attachment at end of procedure), and

2. complete an "Approval for Employment Outside the University Setting" (Attachment at end of procedure) for each activity not previously reported.

3. Route completed form(s) through supervisor to Budget Unit Head.

NOTE: If any of the employees that you supervise do not have access to e-mail, it is your responsibility to make sure that all your employees receive a copy of and complete the Outside Employment form(s).

Budget Unit Head

5. Reviews certification. If approved, forwards to appropriate Vice President and employee.

6. If disapproved, discusses and resolves with employee.

7. Route approved certification to appropriate Vice President.

Appropriate Vice President

8. Reviews certification.  If disapproved, discusses and resolves with Budget Unit Head and employee.

9. Route certification to Business Affairs - Human Resource Section.

Business Affairs - Human Resource Section - Director of Human Resources

10. Schedules employee responses by Vice President, by Budget Unit Head for President's review and Legislative Auditor's file.

11. Files "negative response" certifications; forwards "positive response" Certifications with Schedule of Certifications (Attachment at end of procedure) to President for review and approval.

President

12. Reviews and approves "positive response" certification.

Discusses disapproved certifications with appropriate Vice President.

13. Returns Certifications to Business Affairs - Human Resource Section.

Business Affairs - Human Resource Section - Director of Human Resources

14. Requests Business Affairs-Purchasing Section to compare University's Vendor File to employee's outside ownership and employment.

15. Reports any apparent violations to Vice President for Business Affairs & Controller, Appropriate Vice President and President for resolution.

16. Prepares "positive response" Schedule of Certifications (Attachment at end of procedure) for transmittal by President to the Board of Supervisors for the University of Louisiana Systems staff.

17. Forwards, under President's transmittal, completed "positive response" Schedule of Certifications (Attachment at end of procedure) to the Board of Supervisors for the University of Louisiana Systems staff.

18. Files copy of "Schedule" in permanent office file and files employee certification in respective personnel file.

3. New Employee Orientation

Budget Unit Head

1. Upon employment of a new employee, during the Budget Unit Head/Supervisor's departmental entrance conference, advises the new employee of the University's Employment Outside the University Setting policy and procedure.

2. Supplies the new employee with a copy of the policy and procedure and requests that any current outside employment be disclosed and that all future outside employment be requested for approval in accordance with the university's policy and procedure.