PM-11 - Outside Employment of University Employees
May 12, 1993
| Memorandum to:
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Chancellors Caffey,
Darling, Davis, Day, Martin, O'Brien, Rigby, Smith and
Executive Director Bray |
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| Subject: |
Outside Employment of
University Employees |
This memorandum rescinds PM-11 dated October 4, 1991 and PM-66
dated March 22, 1988.
| I. |
Introduction |
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Louisiana State University recognizes
that certain outside employment activities are of
benefit to the University, to the State of Louisiana and
to the private sector as well as to individual
employees. Although the University recognizes a right of
employees to engage in outside employment, 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 University including faculty, other
academic, unclassified and classified, are
required to abide by this presidential
memorandum at all times, including during
regular and summer term and while on paid or
unpaid leave.
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| B. |
Outside employment is defined
as any non-University activity for which
economic benefit is received, including but not
limited to:
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1. |
Employment with any non-University
employer. |
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2. |
Contracts to provide consulting,
personal or professional services to
non-University individuals or entities,
including publishing agreements or
arrangements.
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3. |
Self-employment or
operation of a business.
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| 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.
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| D. |
Outside employment shall be
performed only outside of assigned working hours
or responsibilities or during a period of paid
or unpaid leave. During paid sabbatical, special
or educational leave, outside activities may be
permitted only in exceptional circumstances.
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| 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.
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| II. |
Outside Employment Which Will Be Considered for Approval |
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The following types of outside
employment will be considered for approval:
| A. |
General consulting, other
outside employment or business activities.
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| B. |
Serving as an expert witness
in an area based upon the employee's training
and experience.
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| 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.
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| III. |
Outside Employment Which Will Not Be Approved |
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| A. |
University
employee may not receive compensation to assist
(As used herein, the term "assist" shall mean to
act in such a way as to help, advise, furnish
information to, or aid a person with the intent
to assist such person.) 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.
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| 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 Chancellor.
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| C. |
Blanket
approvals for outside employment will not be
granted. |
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| D. |
Employment
or contractual relationships which are
considered to be a violation of the Louisiana
Code of Governmental
Ethics will not be approved.
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| IV. |
Employee Responsibilities |
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Full-time employees contemplating
outside employment or engaged in outside employment
shall:
| A. |
Disclose
outside employment in accordance with PM-11, and
procedures established therefore. |
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| 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
LSU. 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.
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| 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 Board
of Supervisors of Louisiana State University and
Agricultural and Mechanical College, 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.
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| D. |
Comply with
any other provisions of PM-11. |
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| V. |
Approval Levels |
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Certain types of outside employment
require approval of a Chancellor and/or the President as
follows:
| A.
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Approval
by a Chancellor. Under the Louisiana
Code of Governmental Ethics,
certain outside employment requires review and
approval by a Chancellor and may be approved
only for academic, administrative and
professional employees.
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| 1.
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Outside employment which requires
approval by a Chancellor includes:
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a.
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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.
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b.
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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 or
services.
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c.
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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.
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d.
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Outside
employment yielding results
which advance a theory or
practice in the employee's
field. |
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e.
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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.
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f.
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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.
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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:
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a.
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Approve
payments by the University to
the third party pursuant to any
contract between the University
and the third party.
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b.
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Evaluate any
work performed by the University
pursuant to a contract between
the University and the third
party.
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c.
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Negotiate
and/or approve any subsequent
contracts between the University
and the third party.
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d.
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Approve the
purchase of University equipment
pursuant to the contract with
the third party in an amount in
excess of $2,000.00.
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The above actions
must be carried out by the employee's
immediate supervisor and that approving
supervisor's next immediate supervisor.
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3. |
Outside employment requiring the
approval of a Chancellor also requires a
written agreement between the employee
and the outside entity which shall
contain the following explicit
information:
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a.
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General
technical area of endeavor.
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b.
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Specific
employment or consulting
activities. |
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c.
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Duration of
employment agreement.
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d.
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Estimated
time in hours per week or days
per month required for the
employment. |
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e.
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Employee's
compensation rate and method of
payment. |
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f.
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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.
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g.
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Statement
that the use of the University
name in connection with the
employment activities shall be
only upon written authorization
of the University.
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h.
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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 University and
disposed of in the manner
prescribed by Chapter 7.2 and
7.3 of the By-Laws and
Regulations of
the LSU Board
of Supervisors and
such other University policy as
may be applicable.
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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.
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5. |
For such agreements, a Chancellor must
certify to the following prior to the
execution of any contract approved
pursuant to this policy:
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a.
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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.
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b.
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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.
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c.
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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.
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6. |
Following approval and execution, the
appropriate Chancellor 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 Chancellor or
his designee until at least three years
beyond the expiration of the agreement.
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B. |
Approval
by the President. The following types of outside
employment require review and approval by the
President in addition to campus approval:
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1. |
Outside employment involving public
policy. |
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2. |
Outside employment of a Chancellor.
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3. |
Outside employment or contracts by
employees for professional, personal,
consulting and social services with a
department, commission, council, board,
office, bureau, committee, institution,
agency, government, corporation, or any
other establishment of the Executive
Branch of the State of Louisiana.
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| C. |
Approval
by Chancellor or Designated Administrative
Officer. All other outside employment may be
approved through normal administrative channels
by the Chancellor or by a campus administrative
officer designated by the Chancellor.
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| 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 of the affected campuses
is required.
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| VI. |
Use
of University Equipment, Materials, and Services |
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The appropriate
campus administrators, including chairs, directors,
deans and vice chancellors, 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.
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| VII. |
Procedures |
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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 President for review and approval.
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| VIII. |
Reporting Requirements |
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Annually, the
Chancellor shall prepare an information report listing
all outside employment approved by the Chancellor and
currently in force under this policy and any other
details which may be requested. Copies of this report
shall be sent to the President of the System and to the
Board of Supervisors.
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| IX. |
Code
of Ethics Requirement |
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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. All employees, both
full-time and part-time, are reminded that they are
subject to the Ethics Code.
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Allen A. Copping
President
xc: System Officers
(FILE NOTE: PM-11 Forms available in offices of Academic Affairs
at the various campuses or System Office of Academic Affairs.)
PM-11 Form A / Disclosure of Outside Employment
PM-11 Form B / Disclosure of Outside Employment Requiring Approval by the
Chancellor or the President (PDF fill able form)
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