7.1.1. Purpose

Full-time faculty members agree to devote themselves to UTC’s mission of teaching, research, and public service. Fulfillment of these responsibilities demands a full-time, one hundred percent (100%) commitment to a faculty member’s regular UTC duties and responsibilities, including the responsibility to remain current in the discipline to which the faculty member is appointed. For many faculty members, an important way to remain current in their disciplines involves testing and applying their academic skills and abilities to real-world problems outside of their regular UTC duties. UTC encourages faculty members to engage in consulting and other related outside services which are associated with the disciplines of their appointments and which develop their professional expertise. By engaging in such outside services, many faculty members improve their disciplinary skills; serve educational institutions, professional organizations, business, industry, and government; and bring positive recognition to UTC.

The purpose of the Compensated Outside Services Policy set forth in this Section 7.1 is to ensure that professional development of the faculty is encouraged and, at the same time, ensure that faculty meet their regular UTC duties and responsibilities in a timely and effective manner.

7.1.2. General Principles and Application

1. This policy has three governing ideas. One is that the faculty development and University “value” of compensated outside services is partly determined within the culture of the academic discipline; thus, rather than having a centralized and unilateral requirement, the responsibility of determining faculty development and University “value” of compensated outside services is delegated to the departmental level. Secondly, as a means of promoting accountability, this policy calls for regular and open communications between the faculty member and his or her department head regarding the faculty member’s compensated outside services. Finally, because other faculty activities (teaching, research, service) often are gauged as a percent-of-effort, this policy similarly gauges compensated outside services on a percent-of-effort basis.
2. While compensated outside services may be valuable for both faculty members and UTC, the primary responsibility of faculty members is to fulfill the teaching, research, and service commitments of their full-time appointments to UTC. Faculty members have a responsibility not to undertake external activities that substantially burden or interfere with their commitments to UTC. A full-time appointment includes an obligation to maintain a meaningful presence on behalf of UTC in the performance of responsibilities, including by being accessible on campus to students, staff, and colleagues. Compensated outside services must not result in a conflict of interest or a conflict of commitment with respect to the faculty member’s regular UTC duties and responsibilities.
3. Compensated outside services are not part of and cannot be substituted for a faculty member’s full-time teaching, research, and service commitments to UTC. Correspondingly, a faculty member’s annual performance evaluation is based only on the faculty member’s performance of the duties and responsibilities of his or her appointment to UTC.
4. Subject to and consistent with the requirements of this policy, college and departmental bylaws may further define the nature and allowable time commitments of appropriate compensated outside services for faculty members within the college or department. A faculty member’s department head and dean are responsible for assessing the value of the faculty member’s compensated outside services.
5. The guidelines and requirements of this policy primarily apply to compensated outside services provided by faculty members pursuant to long-term arrangements or continuing/recurring short-term arrangements with outside clients. The guidelines and requirements of this policy do not apply to:
   1. Compensated outside services provided by faculty members pursuant to non- recurring, short-term arrangements (which are typically not compensated except for modest honoraria), such as participation in symposia, accreditation visits, research paper presentations, exhibitions, or recitals; however, faculty members must notify and secure approval from their department heads in advance of such activities.
   2. Compensated outside services provided by faculty members on academic year (nine-month) appointments during the Summer semester term, except as provided under Section 7.1.3.6. below.
   3. Compensated outside services provided by faculty members pursuant to sponsored grants or contracts subject to UT Fiscal Policies on Sponsored Grants and Contracts.^[1]
6. This policy shall be construed to be consistent with all other provisions of this Handbook and other University policies, including policies regarding conflicts of interest (see UT Policy GE0002 – Conflicts of Interest & Commitment), intellectual property (see Statement of Policy on Patents, Copyrights, and Other Intellectual Property), and academic freedom (see UT Policy BT0006 and Chapter 2 of this Handbook).

7.1.3. Specific Guidelines and Requirements

1. Restriction on Use of University’s Name

During the conduct of compensated outside services, faculty members shall not make any use of the name of The University of Tennessee or of any of its constituent institutions (e.g., UTC or any other UT campus or institute) for any purpose other than professional identification; nor may faculty members claim any University or institutional responsibility for the conduct or outcome of such services.

2. Approval to Engage in Compensated Outside Services

Should a faculty member wish to pursue compensated outside services, the faculty member shall submit to his or her department head for approval a Compensated Outside Services Approval Form indicating the proposed plan for such services and the general percent of effort to be allocated to the services in the year ahead. The department head shall review the faculty member’s plan as part of the faculty member’s annual review and come to an agreement with the faculty member on the plan. If, after the faculty member’s plan is approved, the faculty member has an opportunity to pursue a new compensated outside service or if any significant changes to an agreed plan arise before the faculty member’s next annual review, the faculty member must notify the department head and submit a new or revised approval form for the department head’s approval.

3. Reporting of Compensated Outside Services

As part of a faculty member’s annual review, the faculty member must report his or her previous year’s allocation of effort regarding compensated outside services on a Compensated Outside Services Certification Form.

4. Use of UTC Resources

Faculty members are not permitted to engage in compensated outside services that involve significant direct expense to UTC or significant use of UTC facilities, equipment, or services, except as permitted in this section. Faculty members who wish to use UTC resources to conduct compensated outside services must enter into a written agreement with UTC specifying the nature of the services to be performed; the kind of resources (equipment, supplies, material, services, etc.) to be used; the extent of use of the UTC resources; and the fee schedules and procedures regarding the compensation to be paid to UTC for the use of the resources. The compensation to be paid to UTC should be the fair market value for such resources, but, at a minimum, it shall not be less than UTC’s cost for the resources. The written agreement must be approved in advance by the faculty member’s department head, the dean, and the Chief Business Officer.

5. Restrictions on Compensated Outside Services Effort

A faculty member is expected to perform his or her UTC duties and responsibilities during the entire period of the faculty member’s appointment term, and such performance of his or her UTC duties and responsibilities comprises the faculty member’s total one hundred percent (100%) university effort for the appointment term. Accordingly, for a faculty member holding an academic year (nine-month) appointment, the faculty member’s 100% university effort should be for the nine-month term.^[2] For a faculty member holding twelve-month appointment, the faculty member’s 100% university effort should be for the twelve-month term.^[3]

A faculty member’s total compensated outside services efforts should not be more than twenty percent (20%) over his or her total 100% university effort during the faculty member’s appointment term. The department head and dean have the discretion to restrict a faculty member’s compensated outside service efforts to a percentage less than 20% over the faculty member’s total 100% university effort during the appointment term. Such further limitation on a faculty member’s compensated outside services efforts is particularly appropriate in cases where the faculty member’s performance of his or her assigned UTC duties and responsibilities does not meet expectations for rank, as determined by the annual performance evaluation of the faculty member.

6. Summer Semester Term

A nine-month faculty member who does not have an appointment to perform work for UTC during the Summer semester term (e.g., to teach Summer semester courses) is not subject to any quantity restrictions on his or her compensated outside services efforts during the Summer semester term.

A nine-month faculty member who has an appointment to perform work for UTC during the Summer semester term (e.g., to teach Summer semester courses) shall be limited in his or her compensated outside services efforts during the Summer semester term as established by written agreement between the department head and the faculty member.

7. “Extra Services Pay” Activities

Activities for which a faculty member is reimbursed by UTC as “extra services pay” under UT Policy HR0406 – Compensation may be counted as compensated outside services effort. The total of activities of a faculty member covered by both extra services pay activities and compensated outside services should not be more than twenty percent (20%) over the faculty member’s total 100% university effort for his or her appointment term.

8. Non-Compliance

A faculty member’s failure to comply with the requirements of this policy and/or applicable college or departmental bylaws with respect to the performance of outside compensated services may be considered as a negative factor during annual reviews, promotion and tenure decisions, salary determinations, and requests for released time or other institutional support. Serious and/or continuing noncompliance also may result in more severe disciplinary action, including, but not limited to, reduction in allowable compensated outside services, salary reduction, restitution for cost of equipment, and termination for adequate cause. A faculty member found to have violated this policy may appeal the finding and any resulting disciplinary action pursuant to the applicable appeal procedures provided in Chapter 5 of this Handbook.