University Budget Office 

Dual Employment



Purpose  General Guidelines and Applicable Policies  Procedures  Forms and Instructions 


   Please contact us at dualemployment@ncsu.edu for assistance with dual employment at NC State.

A. Purpose


    This Statement provides guidance to schools, departments, and other campus units regarding the policies and procedures for the joint employment of individuals between two or more State government agencies.

B. General Guidelines and Applicable Policies


    1. The State Budget Office and the State Personnel Office on January 1, 1976, issued a joint directive on a Uniform Dual Employment Policy to be followed by all State Agencies. This policy statement authorizes State agencies to secure services of an employee of another State agency on a "part-time, consulting or contractual basis" by entering into a dual employment agreement. The term "dual employment" refers to the situation in which a specifically identified State employee performs services for a State agency other than his or her parent agency with the specific approval of both the borrowing and the parent agencies.

    The Dual Employment Policy applies to all full-time permanent State employees, both EPA and SPA, and to all State agencies. Any compensation to the employee must be paid by the parent agency. The borrowing agency is not authorized to make direct payment to full-time permanent employees of another State agency.

    2. Dual employment should be used where valid joint appointments are involved. It is used to authorize employees with special skills and abilities to participate in a loan arrangement between the parent and borrowing agencies so that a sound balance between the interests of the State, the agencies, the employee and the public is attained.

    3. Approval of dual employment agreements should be granted or withheld after careful consideration of factors such as: the character of the services to be performed, the effect on the morale of other State employees, ethics, the temporary loss of the services of the individual to the parent agency, the possible reduced efficiency of the individual to the parent agency, the possible reduced efficiency of the individual as a result of fatigue or inattention to primary responsibilities, the urgency of the situation, possible alternative arrangements, and other pertinent factors.

    4. The following are not considered State agencies and their employees are exempt from the policy:

      - The Public School System

      - The Community College System

      - Employees of cities and counties

    5. Uniform Dual Employment Definitions:

      a. The State department, agency, or institution having control over the services of the employee and from which the employee receives his regular pay check is the parent agency.

      b. The State department, agency, or institution seeking on a temporary or part-time basis the services of another State agency employee is the borrowing agency.

      c. Normally, an employee with a 40-hour workweek schedule is a permanent full-time employee. This includes employees on rotating shifts and those with split shifts.

      d. Notwithstanding any definitions previously given or henceforth to be given to the word "honorarium", any payment by one State agency to a full-time employee of another State agency for any type of service is subject to the procedures of the Uniform Dual Employment Policy.

      e. An employee under contract to an educational institution for an academic year (normally nine months) is ordinarily considered a "free agent" during the summer, notwithstanding that such employee may be paid on a twelve-month basis. An employee is not subject to the Dual Employment Policy while a free agent.

      f. Any temporary or permanent part-time employee of a State agency may also be a temporary or permanent part-time employee of another State agency and still be excluded from dual employment procedures. To be excluded, the work for two or more State agencies must not add up normally to be full-time (or 40 hours) standard workweek. However, each agency employing such an employee is responsible for seeing that the employee is not allowed to work, without appropriate overtime may, more than forty (40) hours in a standard workweek for all State agencies.

      g. If payment is to be made for services, the rate must be agreed upon in advance in writing and may not be increased merely because additional funds become available. Retroactive payments are not permissible to persons who have already performed services without compensation just because funds become available.

      h. If the work (including preparation) is performed for a borrowing agency outside the employee's regular work schedule, the employee may receive additional pay. Employees subject to the State Wage-Hour Policy must be compensated for the combined number of hours worked during a workweek at both the parent and the borrowing agency. Such compensation must include overtime payments of time and one-half the employee's regular pay rate for any hours worked in excess of 40 in one workweek.

    6. Borrowing Agency Responsibilities

      a. All payments for services of borrowed employees must be charged by the borrowing agency under Employees on Loan Payments. They may not be charged to salaries and wages accounts (FAS object codes). However, the Budget Office will transfer the budget from the project (FAS account) and account indicated on the
      Dual Employment Certification Form, CP-30 (pdf) to the Employee on Loan account 51940 for the exact dollars rounded. The same would apply to transfer of funds budgeted for temporary wages.

      b. The borrowing agency will compensate the parent agency (not the employee) for the following costs:

        - Employee's gross pay

        - Employer's share of FICA tax without consideration of employee's cumulative earnings to date

        - Employer's share of retirement contribution under joint appointments (only for other than supplemental pay)

      c. The borrowing agency will reimburse the employee directly for any travel and/or subsistence expenses related to the performance of services for the borrowing agency. Such reimbursements are subject to State travel policies. Commuting expenses between the parent agency and the borrowing agency are not reimbursable.

    7. Parent Agency Responsibilities

      a. The parent agency in all cases will be fully responsible for the employee's compensation. The employee will remain on the parent agency's payroll. All payments for services must be made by the borrowing agency directly to the parent agency of the employee borrowed, not to the employee, and it will include appropriate employer's matching social security and retirement contributions.

      b. In all cases of supplemental payment to an employee, the parent agency must make the payment to the employee as an addition to his or her regular pay. In such cases, retirement contributions will not be made.

C. Procedures


    1. University School/Department as a Borrowing Agency

      a. It is the borrowing agency's responsibility to secure prior approval from he parent agency for the services of an employee.

      b. After the services have been rendered, the borrowing department originates a Dual Employment Certification Form, CP-30 (pdf), indicating the source of funds for the agreement, and transmits the completed form to the University Budget Office. Section one, Certification by Borrowing Agency and Analysis of Payment to Parent Agency, is also to be completed and submitted to the University Budget Office.

      c. The Budget Office prepares a budget revision to transfer the salary and benefits funds into account 1940, Employee on Loan Payments. A voucher is then prepared by the Budget Office payable to the State Agency that is the Parent Agency of the borrowed employee for the amount agreed upon on the CP-30 form plus social security. The check for services plus the CP-30 form is then sent to the Parent Agency who in turn puts the borrowed employee on the payroll for the supplemental pay. The Parent Agency then fills in the Parent Agency section of the CP-30 form and returns a properly signed copy to the Borrowing Agency.

      d. Instructions on completing the CP-30 form as a borrowing agency are set forth in paragraph E below.

    2. University School/Department as a Parent Agency

      a. The completed CP-30 form received from the Borrowing Agency, plus the salary check, are sent to the University Budget Office for processing. The check is deposited into the University accounts. The CP-30 form is forwarded to the Parent department for the signature of the employee and his immediate supervisor and the completion of Section Two of the form.

      b. Once signed, the CP-30 form (all copies) is returned to the University Budget Office. That office prepares the necessary payroll document for supplemental pay or insures that reimbursable payments are applied to the proper financial project and accounts. This action is taken based on information provided by the Parent department.

      c. The University Budget Office then prepares the necessary budget revisions (Form BD-606) and submits them to the Office of State Budget and Management to appropriately revise the departmental budget.

      d. A copy of the CP-30 form is then returned to the Borrowing Agency to show that all required action has been taken.

      e. Instructions on completing the CP-30 form as a Parent agency are set forth in paragraph E below.

D. Forms and Instructions


    The CP-30 form will be completed as follows:

    1. Borrowing Agency (Section One)

    1. Name of Agency - Enter the name of the department requesting the services
    2. Name of Employee - Enter the first name, middle initial, and last name of the employee whose services are requested
    3. Nature and Location of Work Provided - Describe the type of work performed and where
    4. Dates Worked - Enter inclusive dates of services
    5. Rate and; Time if Appropriate - Enter the period of time and rate of pay if applicable. Note that the amounts in the "Analysis of Payment to Parent Agency" section are fixed, even if the exact payment cannot be computed from the rates and time periods given.
    6. Agency Code and Subhead - Enter the departmental project (FAS account) and OUC from which dollars will be funded. Indicate the position number being utilized if applicable.
    7. Signature of Contracting Agency Official - Signed by the department head of the borrowing department.
    8. Analysis of Payment to Parent Agency - Include the salary for services and applicable employer's share of social security / FICA tax without consideration of employee's cumulative earnings to date. Also, include employer's share of retirement contribution if applicable. Do not include travel, subsistence, indirect expense, or direct cost unless approval is obtained from the University Budget Office.

    2. Parent Agency (Section Two)

    1. Name of Agency - Enter the name of the department to which the employee is assigned
    2. Name of Employee - Enter the name of the employee to whom this form pertains
    3. Classification, Rank or Title - Enter the classification, rank, and/or title of the subject employee
    4. Position Number- Enter the budgeted position number of the subject employee
    5. Social Security Number - Enter the social security number of the subject employee
    6. Agency Code - Enter the departmental project (FAS account)
    7. Subhead Code - Enter the departmental OUC
    8. Retirement Code - Leave blank
    9. Gross Salary Amount - Enter the amount of salary for services that the employee is to be paid in addition to his regular salary. This should match the salary for services from the Borrowing Agency Section One.
    10. Budget Officer (Parent Agency) - Signed by the budget officer from the Parent Agency
    11. Employee - Signed by the subject employee
    12. Immediate Supervisor - Signed by the employee's immediate supervisor. If the immediate supervisor is also the department head, then he/she needs to sign both lines.
    13. Department Head - Signed by the head of the department to which the employee is assigned. If the immediate supervisor is also the department head, then he/she needs to sign both lines.

TOP>>