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VII - 1.40 - USM POLICY ON CONTINGENT STATUS EMPLOYMENT FOR
        NONEXEMPT AND EXEMPT STAFF EMPLOYEES

(Approved by the Board of Regents December 13, 1996; Amended,
February 9, 2001; Amended, July 10, 2002; Amended, October 22,
2004)

I.   PURPOSE

   Establishes a USM policy on the appointment and compensation
   of individuals for Contingent Status employment including, in
   some instances, the provision of certain benefits.
   
II.  DEFINITIONS

   Contingent Status Employment - is a Non-Regular Status of
   employment for Nonexempt, or Exempt Staff positions in the
   USM.
    
   Categories of Contingent Status Employment - Category I and
   Category II (See Section IV. below).
    
   Contingent Status Employee - is defined as a person
   (nonfaculty employee) who (1) pursuant to a written
   agreement, provides personal services to an institution for
   pay; (2) is not employed as a Regular Status employee in a
   budgeted position; (3) whose compensation, terms and
   conditions of employment are governed by this policy and a
   written contract and not by the USM policies generally
   applying to Regular Status Nonexempt and Exempt staff; and
   (4) has an employer-employee relationship with the
   institution in which the institution furnishes necessary
   supplies and equipment, and a place to work; has the right to
   control and direct the details, means and results of the
   performance of the services; and has the right to discharge
   the person from employment.

III. TERMS AND CONDITIONS

  A.   All Contingent Status employees:

     1.   must meet the minimum qualifications for the position;
     
     2.   shall be paid at a rate that at least meets the minimum of
         the pay range for the position's job class.  If contract is
         renewed, Cost of Living Adjustment (COLA) as provided for Regular
         Status employees and a salary increase may be considered by the
         employing institution;
      
     3.   shall not have any grievance rights under any State,
         University System of Maryland, or Institutional policy, unless
         such policy specifically provides otherwise;
     4.   shall not be entitled to participate in the State Pension
         System or the USM Optional Retirement Program; and
     
     5.   shall be covered by applicable Federal and State of Maryland
         Equal Employment Opportunity and Affirmative Action laws and
         other applicable USM employee protection policies.

   B.   Each written agreement (contract) for a Contingent Status
       employee shall specify:
     
      1.   the appropriate contingent category:  Category I or Category
         II.  If it is a Category I appointment, it shall specify whether
         it is Seasonal or Intermittent; or percentage of time worked;

      2.   the salary/hourly rate of pay;

      3.   the duration of the contract, including a provision that
         both the employee or employer have the right to terminate the
         agreement for any reason following notice as specified in the
         agreement;

      4.   the duties to be performed; and

      5.   the specific benefits and rates of leave accrual provided.

IV.  CATEGORIES OF CONTINGENT STATUS EMPLOYMENT

   Agreements for contingent status employment shall not be
   offered on terms which are not included in one of the two
   categories of contingent status employment as follows:

   A.   Contingent Category I - defined as any Contingent Status
      employee whose written agreement (contract) is for a term of six
      months or less regardless of the percentage of time worked and
      regardless of whether it is seasonal or intermittent in nature
      (works "if and when needed").

      Contingent Category I Employees:
       
      1.   shall not be required to be hired through competitive
        recruitment or selection;
        
      2.   shall not be entitled to receive fringe benefits;
        
      3.   may have their contract renewed indefinitely by executing
        new contracts of up to six months at a time for 49% or less of
        fulltime employment.  However, if they have contracts of 50% or
        more of fulltime employment lasting for a period of six
        consecutive months, they shall be eligible for contract renewal
        to a lifetime maximum of 12 months under Contingent Category I in
        that position.
        
      4.   shall not be entitled to receive service credit for the time
        served in this category unless they have worked 50% or more of
        fulltime, on a consecutive basis, immediately preceding
        appointment to a Regular Status position through a competitive
        process.  The term "service credit" is not applicable to any
        retirement rights;
        
      5.   shall have the mandatory payroll deductions and mandatory
        employer paid subsidies as described in Sections V.A.6.and 7.
        below.

   B.   Contingent Category II - is defined as any Contingent Status
      employee whose written agreement (contract) is for more than six
      months, but no more than 12 consecutive months; and is on a
      fulltime basis or on a parttime basis of 50% or more of fulltime
      employment; and is not seasonal or intermittent in nature.

      Contingent Category II Employees:
       
      1.   are required to be hired through competitive recruitment and
        selection;
       
      2.   shall be entitled to receive at least the minimum benefits
        as specified in this policy;
       
      3.   subject to paragraph IV.B.4., may have their contract
        renewed by executing new contracts of up to one year at a time;

      4.   employment status conversion:

        after three consecutive years of service in the
        Contingent Category II at the same institution,
        Contingent Category II employees who remain
        employed by the institution shall be converted to a
        Regular Status position, subject to all the
        policies and procedures of Regular Status
        employees.  This provision does not apply to
        employees in positions funded through a
        Research/Service Grant or Contract, or through
        Clinical Revenue; Athletic Coaches; employees on
        internships; and those employees who have chosen
        not to be converted to Regular Status employment.
          
        For Contingent Category II employees on the payroll
        as of October 22, 2004, and who remain employed by
        the institution, the following conversion timeline
        shall apply:
     
        a.   Employees with 6 or more consecutive years of service shall
           be converted by July 1, 2005;
        b.   Employees with less than 6 but at least 3 years of
           consecutive service shall be converted by July 1, 2006; and,
        c.   Employees with less than 3 years of service shall be
           converted by July 1, 2007.
     
        Each institution shall develop a schedule for the
        conversions to be placed on file with the
        institutional office of Human Resources.  Progress
        toward full conversion shall be included in the
        report required by section VI of this policy.
          
      5.   shall be entitled to service credit for the time served in
        this category, if appointed, without a break in service, as a
        Regular Status employee.  The term "service credit" is not
        applicable to any retirement rights;
       
      6.   who are converted to Regular Status before occupying their
        current position for a period equal to an applicable probationary
        period shall be in probationary status until the position has
        been occupied, as a Contingent Status employee and a Regular
        Status employee, for the full probationary period; and

      7.   shall be given a written performance evaluation under the
        USM's Performance Evaluation Program guidelines (USM-BOR VII-
        5.20).

V. BENEFITS
     
   A.   The minimum benefits to be provided to all Contingent
      Category II employees, on an annual basis, are listed below.
      These benefits shall be pro-rated for contracts of less than one
      year and for less than fulltime employment.

      1.   Basic Leave Benefits:

        Contingent Category II employees are eligible for paid
        leave, which includes five (5) days of annual leave; the
        following eight (8) holidays:  New Year's Day, Martin
        Luther King Day, Memorial Day, Independence Day, Labor
        Day, Thanksgiving Day, the Friday after Thanksgiving
        Day, and Christmas Day; three (3) days of sick leave
        (sick leave is defined as leave available to the
        employee when the employee is sick or is needed to care
        for the employee's sick spouse, child or legal
        dependent; and it only may be used in accordance with
        institutional policies that govern use of sick leave for
        Regular Status employees); and leave for jury duty as
        called to serve.  Additionally, individual contracts
        shall address whether leave that is not used by the end
        of the contract term can be carried over to another
        contract; whether the institution shall pay the employee
        for it, with the exclusion of sick leave; or whether it
        is forfeited.
          
      2.   Health Insurance Program and Prescription Plan:

        Contingent Category II employees may participate in the
        State Health Insurance programs and Prescription Plan
        that are available to State employees by paying 100% of
        the premiums directly to the State Health Benefits
        Division.  Participation shall be in accordance with
        regulations of the State Department of Budget and
        Management.

      3.   USM or Institution-Sponsored Insurance Programs:

        Contingent Category II employees may participate in USM
        or Institution sponsored insurance programs (e.g., long-
        term disability; life insurance; auto and homeowners
        insurance; health insurance) by paying 100% of the
        premiums directly to the provider.

      4.   Tuition Remission:

        Contingent Category II employees may participate, at
        their home institution only, in the USM's Tuition
        Remission program.

      5.   Tax Deferred Programs:

        Contingent Category II employees may participate in
        employee-only-contribution Tax Deferred Investment
        programs that are approved by the State of Maryland and
        USM, and as permitted by law and regulations.
         
      6.   Mandatory Payroll Deductions:

        Contingent Category II employees shall have the required
        mandatory deductions via payroll deduction, e.g.,
        Maryland and Federal Income Tax withholding, and Federal
        Insurance Contributions Act (FICA) which includes Social
        Security and Medicare.

      7.   Mandatory Employer Paid Subsidies:

        Contingent Category II employees shall have the required
        mandatory employer paid subsidies, e.g., Unemployment
        Insurance; Workers Compensation Insurance; and FICA

   B.   Negotiable Benefits:

      At the discretion of the employing institution, a
      Contingent Category II employee may be offered benefits
      supplemental to the minimum benefits listed in Section
      V.A. above consistent with those available to Regular
      Status employees in a similarly situated job class and
      employment category.
      
   C.   Other:

      Contingent Category II employees may participate in other
      programs with voluntary deductions, e.g., U.S. Savings
      Bonds; charitable contributions; State Employees Credit
      Union (SECU).

VI.  USM REPORTING REQUIREMENT

   In order to monitor the use of this policy, the USM requires
   the CEO of each institution to report on an annual basis
   (August 1) the usage of contingent employment at their
   institutions.  The report format shall be provided by the USM-
   HR Office to the CEOs.

IMPLEMENTATION PROCEDURES

   Each Chief Executive Officer shall develop procedures, as
   necessary, to implement this policy and shall file said
   procedures in the institutional Office of Human Resources.

REPLACEMENT FOR

   UM-BOR Policy III - 21.00:  Amendment to Policy Governing
   Contractual Employment (Issued by the President, July 18,
   1985; revised January 21, 1987; March 30, 1987 and April 8,
   1988).
   
   UM Personnel Policies and Rules for Classified Employees -
   Section II, Classified Employment, Appointment, 2. Temporary,
   pp. II-12 & 13; 3. If and When Needed Appointments, pp. II-13
   & 14.
   
   UM Personnel Policies and Rules for Associate Staff,
   Positions and Appointments, C. Temporary Appointment, pp. 1 &
   2; D. If and When Needed Appointment, pp. 2 & 3.