07-01.05 – Secondary and Outside Employment for Regular Non-Faculty Employees

  1. Policy Statement:

    This policy regulates Secondary Employment within Towson University (the “University”) and/or the University System of Maryland (“USM”), as well as Outside Employment by entities other than the University or USM. The policy further serves to facilitate review of requests for Secondary Employment or Outside Employment and to ensure that consideration is given to the overall work/life balance of the employee as well as to consider any potential or actual conflicts of interest or commitment that may arise from Secondary Employment or Outside Employment. Secondary Employment or Outside Employment shall not be undertaken by University regular non-faculty employees without the express approval of the Office of Human Resources (“OHR”). In certain circumstances, Outside Employment must also be reviewed and approved by the Maryland State Ethics Commission. Compliance with this policy therefore reduces the risk of actual or potential conflicts of interest and/or conflicts of commitment.

  2. Definitions:

    1. Primary Employment: the regular duties and responsibilities at the University for which an employee is compensated that are assigned to the employee’s primary job (State Authorized Position or “SAP”). The SAP is primary employment, and all other employment is either Secondary Employment or Outside Employment.

    2. Secondary Employment: the performance of duties and responsibilities for which an employee is compensated by the University or USM, that are not assigned to the Primary Employment role.
    3. Outside Employment: the performance of duties and responsibilities by an employee for an Outside Entity. Such duties and responsibilities may be either paid or unpaid. For example, Outside Employment may include, but is not limited to, service on boards or arrangements between the employee and State of Maryland executive agencies, local government agencies, private companies and corporations, or self-employment (e.g., independent contracting/consulting). Outside Employment does not include volunteer work unless such work consists of service on a State, federal, or local government board or commission, or for-profit or non-profit board or commission. Examples of volunteer work that do not constitute Outside Employment include serving as a Scouts leader, youth soccer coach, and non-fiduciary volunteer services provided to a local school or religious organization.
    4. Primary Employment Department: the University department for which the employee performs Primary Employment duties.
    5. Secondary Employment Department: the University department or USM institution for which the employee performs Secondary Employment duties.
    6. Regular Exempt Employees: employees in an SAP that is exempt from the wage and overtime provisions of the Fair Labor Standards Act (“FLSA”). Regular Exempt employees are salaried and are required to fulfill their assigned duties regardless of hours worked.
    7. Regular Non-Exempt Employees: employees in an SAP that is subject to all FLSA minimum wage and overtime provisions. Regular Non-Exempt employees are required to account for actual time worked on an hourly and fractional hourly basis.
    8. Conflict of Interest: a situation in which an employee’s financial, professional, or other personal considerations may directly or indirectly affect, or have the appearance of affecting, the individual’s judgment in exercising any University duty or responsibility. Conflicts of Interest are further defined under State of Maryland Public Ethics Law, Md. Code Ann., General Provisions §§5-501 through 5-509.
    9. Conflict of Commitment: a situation where an employee engages in Secondary Employment or Outside Employment activities, either paid or unpaid, that interfere (directly or indirectly) with the obligations of their Primary Employment and/or their commitment to the University. Conflicts of Commitment may typically arise where an employee’s engagement in Secondary Employment or Outside Employment activities take place during the time they are scheduled or reasonably expected to be performing their Primary Employment responsibilities.
    10. Outside Entity: any business, company, or other organization, including, but not limited to, a partnership, corporation, limited liability corporation, unincorporated associate, sole proprietorship (including a private consulting operation), or other institution or organization, whether for-profit or not-for- profit. An Outside Entity does not include the University or USM.
    11. Secondary Employment Agreement: a written agreement between the University and the employee, signed by the Employee, the Primary Employment Department, Secondary Employment Department, the corresponding Vice Presidents, and is approved by the Chief Human Resources Officer (“CHRO”), or their designee. The Secondary Employment Agreement establishes the term or duration, the Secondary Employment Department, the nature of the Secondary Employment, the employee’s rate of pay, the number of required weekly workdays and hours, the duties and responsibilities of the -position, and the qualifications for the position.

  3. Responsible Executive and Office:

    Responsible Executive: Senior Vice President for Campus Operations and COO.

    Responsible Office: The Office of Human Resources.

  4. Entities Affected by this Policy:

    All Regular Exempt and Non-Exempt staff (non-faculty) employees.

  5. Policy:

    1. General 

      1. This Policy applies to Regular Exempt and Regular Non-Exempt staff employees relative to Secondary Employment and Outside Employment that does not involve teaching at the University. Secondary Employment assignments to teach a University-credited course are managed by the Division of Academic Affairs. The CHRO or their designee is the University administrator authorized to approve Secondary Employment and Outside Employment requests per this policy on behalf of the University.

      2. All Secondary Employment and Outside Employment must be declared to the OHR and is subject to review by the OHR and the Maryland State Ethics Commission, as may be deemed appropriate.

    2. Secondary Employment 

      1. At the discretion of the University, a position may not be considered as Secondary Employment if it is determined that:

        1. job functions of the position are closely related to the Primary Employment; or

        2. the position consists of duties for which the employee has subject matter expertise necessary for the performance of their Primary Employment.

      2. A Secondary Employment position shall not be created for related job duties within the same Department. If related duties are required by the Department, workloads must be adjusted accordingly to allow an employee or employees to perform related duties within the regular workweek.

      3. Secondary Employment must adhere to all requirements of this policy and shall not be negotiated nor granted with the sole purpose/intent of providing an employee with additional compensation.

      4. Pursuant to this policy, Departments may hire a Regular Exempt employee to fill an employment need so long as the standards of this policy are met, and the total hours of the Secondary Employment do not exceed 20% of the Exempt employee’s total hours for the regular forty (40) hour workweek.

      5. Secondary Employment for Regular full-time Non-Exempt employees will be permitted at the discretion of the Department. Secondary Employment may not exceed 20% of the Regular Non-Exempt employee’s total hours for the regular forty (40) hour workweek and is subject to approval by the OHR. A full-time (FTE 100%) Regular Non-Exempt employee in a Secondary Employment role must be placed in an overtime status for all secondary hours worked if the hours worked across all authorized positions exceed forty (40) hours in a workweek.

        1. Secondary Employment held by Non-Exempt employees that is voluntary, in a different capacity than the employee’s Primary Employment, and sporadic/irregular in nature may not be subject to the overtime provisions of the FLSA for Public Employers. This exemption is in accordance with 29 U.S.C. 207 (p) (2).

      6. The employee is responsible for confirming and agreeing to the information on the Secondary Employment Agreement and is individually responsible for compliance with State of Maryland Public Ethics Law. Secondary Employment commitments must not conflict with or adversely affect performance of the employee’s Primary Employment.
      7. A Secondary Employment arrangement is not to be confused with a Consulting arrangement. The University will not hire its employees to perform paid consulting activities.
      8. The OHR shall review and assess all Secondary Employment requests in accordance with this policy prior to the Secondary Employment Department engaging the services of the employee. An employer-employee relationship shall exist between the University and the employee performing the Secondary Employment. Accordingly, an employee remains subject to all relevant University policies and procedures relevant to Secondary Employment to the same extent they are applicable to Primary Employment.
      9. Employees are ineligible for pay increases related to Secondary Employment, including, but not limited to merit increases, bonuses, and/or cost of living adjustments.
      10. A Secondary Employment arrangement is valid only after the Secondary Employment Agreement is completed and signed by the Employee, the Primary Employment and Secondary Employment Departments, the corresponding Vice Presidents, and is approved by the CHRO.
      11. Requests submitted to the OHR shall be reviewed and classified in accordance with USM Policy VII-9.11, Policy on Pay Administration for Exempt Positions, USM Policy VII-9.10, Policy on the Pay Program for Non-Exempt Staff Employees, and the FLSA. Employees are required to meet the minimum qualifications of the Secondary Position.

      12. Review of a request and completion of the Secondary Employment Agreement for Regular Staff by the Primary Employment Department is a pre-requisite for commencement of Secondary Employment. By executing a Secondary Employment Agreement, the Primary Employment Department confirms that the Secondary Employment role is not included among the employee’s primary duties and responsibilities, nor will it interfere with the employee’s ability to sufficiently perform their primary duties.

      13. Work should not be performed via Secondary Employment until the Secondary Employment Agreement is fully executed by all required parties. Duration of a Secondary Employment Agreement shall be no longer than a period of one year.

      14. The Primary Employment Department shall be responsible for assuring that an employee utilizes annual/personal leave for any Secondary Employment performed during the regular work hours of the employee’s Primary Employment. An employee that does not utilize leave as required will be subject to appropriate leave adjustment and may be subject to corrective or disciplinary action.

      15. Regular Non-Exempt employees whose Primary Employment FTE is 100% shall record Secondary Employment hours on a Secondary Employment timesheet as overtime, if/as applicable. Part-time Regular Non-Exempt employees are eligible for multiple assignments if the combined FTE totals for the assignments do not exceed 100%. The Secondary Employment Department is responsible for the payment of overtime hours. The Secondary Employment Department shall contact the OHR to determine the hourly rate of overtime pay.
    3. Payment Method for Secondary Employment
      1. Regular Exempt Employees
        1. Employees shall be paid a flat rate for the services performed. Flat rate forms can be obtained from the Payroll Department or the OHR.
        2. Employees who perform Non-Exempt Secondary Employment shall be paid an hourly rate as recorded on the Secondary Employment timesheet.
      2. Regular Non-Exempt Employees
        1. Employees who are approved for Secondary Employment shall be paid an hourly rate for the services performed. Regular Non-Exempt Employees shall not be paid a flat rate for their services. All work must be tracked in terms of actual hours worked and paid according to an hourly rate.
        2. If the secondary assignment causes the employee to be in an overtime status, the OHR will determine the appropriate weighted average hourly rate of overtime pay, per FLSA guidelines.
    4. Termination of Secondary Employment Agreements
      1. All Secondary Employment is at-will and can be terminated at any time, for any reason, at the discretion of the University.
      2. Prior to the completion of the employee’s Secondary Employment the Secondary Employment Department is responsible for submitting the Employment Separation Form to the OHR. The OHR will process the separation and terminate the assignment.
    5. Outside Employment
      1. All Outside Employment must be reported to the OHR, including work to be performed beyond the employee’s normal working hours (i.e., evenings and weekends). The OHR will review internally to determine whether the Outside Employment must be further reviewed by the State Ethics Commission.
        1. If the OHR determines the position does not meet the criteria for review by the State Ethics Commission, the OHR will review the request to determine if the Outside Employment is permissible under this policy.
        2. If the OHR determines that the position is considered Outside Employment that requires review by the State Ethics Commission, the employee must submit the request to the State Ethics Commission for review and approval, copying the CHRO on that submission.
      2. Outside Employment activities/work should not be performed by current staff until a request for Outside Employment is reviewed internally and approved by the State Ethics Commission, if applicable. New hires who begin Primary Employment with the University must disclose any existing Outside Employment upon entry, rendering it subject to review pursuant to this policy.
      3. Employees are required to use annual and/or personal leave for performing Outside Employment that coincides with and/or overlaps with their Primary Employment working hours. The Primary Employment Department shall be responsible for approving any annual/personal leave to be used for engaging in Outside Employment.
    6. Compliance

      1. Secondary Employment, Outside Employment, or outside activities that interfere with an employee’s Primary Employment and/or that constitute a Conflict of Interest or Conflict of Commitment are prohibited.

      2. Use of University resources, including but not limited to University email, phones, voicemail, computers, laptops, and servers for Outside Employment is prohibited.
      3. Expectations:
        1. Employees are responsible for the following:
          1. full and competent performance of all duties related to their Primary Employment at the University;
          2. use of University resources only for University purposes and/or toward University ends;
          3. appropriate application of their time as it relates to Secondary Employment and/or Outside Employment pursuant to this policy; and
          4. refraining from any Secondary Employment, Outside Employment, or related activities conducted during the time they are reasonably expected to be performing their University responsibilities that are unrelated to such duties.
        2. Following review and approval of Secondary Employment or Outside Employment, an employee shall continue to devote their time, energy, and loyalty to supporting the missions, goals, and programs of the University that are associated with their Primary Employment duties.
      4. Enforcement
        1. Previously approved Secondary Employment or Outside Employment may be rescinded if it is later determined that the employment alters, interferes with, or diminishes the employee’s ability and/or availability to perform their Primary Employment duties.
        2. Failure to comply with the requirements of this policy and/or the State of Maryland Public Ethics Law as determined by the University may result in disciplinary action up to and including termination of Primary Employment. Enforcement action may be taken for reasons including, but not limited to:
          1. Failure to devote the requisite and/or appropriate hours of the work schedule to Primary Employment;
          2. Engaging in Secondary Employment without prior written approval by means of the Secondary Employment Agreement;
          3. Engaging in Outside Employment in violation of the provisions or intent of applicable State law (including the State of Maryland Public Ethics Law), regulations, executive orders, and/or this policy;
          4. Participating in any other outside activities that interfere with the hours and responsibilities of the Primary Employment;
          5. Willfully falsifying a timesheet by purposefully neglecting to record annual and/or personal leave hours for time worked at Secondary or Outside Employment that overlaps with work hours of Primary Employment;
          6. Failing a random compliance audit conducted by the University, and
          7. Refusing or failing to cease Secondary Employment or Outside Employment that the University previously approved, but later rescinds for non-compliance.

Related Policies:

References:

Annotated Code of Maryland, General Provisions Article, Title 5, Maryland Public Ethics Law

Code of Maryland Regulations, Title 19A State Ethics Commission, Subtitle 02, Chapters 01 and 02

State of Maryland, Executive Order 01.01.2023.01, Standards of Conduct for Executive Branch Employees (2023)

Approval Date: 6/13/05

Effective Date: 6/13/05

Amended Date: 6/6/2025

Approved By: President’s Cabinet

How to Request the Policy PDF

This online version of the policy may include updated links and names of departments. To request a PDF of the original, signed version of this policy, email the Office of the General Counsel, .