Hiring incentives are a critical compensation tool to attract high quality individuals for whom the University is competing and/or for difficult to fill positions. This policy provides authority and guidance for such payments. This policy applies only to employees hired for Fully Benefit Eligible Academic Appointments and for Regular administrative, service and support positions. This policy applies both to prospective employees and to current employees.
One or more payments, which in the aggregate shall not exceed one-half of the employee's annual salary, may be authorized by the President, Vice President for Human Resources, Chancellor, or Vice Chancellor, Health Sciences (or their delegates) when it is in the best interest of the University to provide a hiring incentive to a prospective or current employee. The President, Vice President for Human Resources, Chancellor, or Vice Chancellor for Health Sciences may authorize payments in excess of one-half of the employee’s annual salary if there are compelling special circumstances or for special programs that have been preapproved by one of these same individuals. Notwithstanding the provisions of the two preceding sentences, such payments must be approved in accordance with the provisions of Section 320.020 and Section 320.030 of the Collected Rules and Regulations, if applicable. Although the University does not intend to monitor or inquire as to how employees who receive hiring incentives spend that money, considerations for approval of such incentives include, without limitation, relocation expenses, student loan or fellowship repayments, and temporary loss of income by a spouse or Sponsored Adult Dependent. Payments provided for under this policy are separate from and in addition to any payments that may be authorized for moving expenses.
As a prerequisite of receiving a hiring incentive, employees must sign an Agreement which stipulates that part or all of the payment(s) is contingent upon the employee continuing employment with the University for a specified time period. The duration of employment required to retain the full hiring incentive shall be at least two (2) full years and not more than four (4) years. The Agreement must include a payment schedule setting forth incentive payments to be made at specified intervals if the employee remains employed on such due date, or, if the incentive payment is paid in advance, a prorated repayment schedule in the event the employee terminates employment prior to the end of the required employment period. Nothing in the Agreement may remove or alter the at-will employment for Regular administrative, service and support positions or extend the term appointment for Fully Benefit Eligible Academic Appointments beyond the stated ending date thereof.
Funds for hiring incentive payments are the responsibility of the employing department(s). The campuses are individually responsible for determining the method by which requests for authorization of hiring incentive payments are processed and approved.
In accordance with Internal Revenue Service regulations, all payments are taxable compensation subject to withholding and other appropriate deductions, and will be reported on the W-2 form as part of the employee's total compensation.
Date Created: 9/26/1997
Last Updated: 10/15/2013