A stipend/one-time payment is a non-recurring single payment (not applied to base pay) for specific services, events, or deliverables that are clearly outside the employee’s established job duties, including annual goals and objectives.
For Exempt employees, stipend/one-time payments may be given to recognize and/or to compensate for a special project or interim assignment. Example: The employee is an Assistant Director but receives a stipend (one-time payment) for teaching language classes.
For Non-Exempt employees, according to U.S. Department of Labor - Wage and Hour Division Fact Sheet #56C: Bonuses under the Fair Labor Standards Act (FLSA), stipend/one-time payments must comply with the provisions of the statute.
If you would like to compensate a non-exempt employee for additional work performed outside of their regular assigned job, contact Compensation Department before the work is performed. All requests must to be reviewed against FLSA guidelines for qualification. If you have questions regarding non-exempt employees receiving one-time payments, contact payroll or compensation before any action is taken.