AR 7130: Employee Compensation

Oregon law prohibits institutions of higher education from engaging in certain activities intended to entice potential students to enroll including, but not limited to compensating employees involved in “recruitment, enrollment, admissions, attendance or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota or similar method related to the recruitment, enrollment, admissions, attendance or sales of education materials to students” (ORS.348.586(12). Oregon law further prohibits a public official to use their position or office for financial gain.

Senior managers and executive level employees who are only involved in the development of policy and do not engage in individual student contact or the other covered activities will not generally be subject to the incentive compensation ban.

Although athletic coaches may be covered employees, subject to certain limitations, and, based upon Mt. Hood Community College’s determination on case-by-case basis, coaching staff and other athletic personnel may be exempt from the prohibition of incentive compensation.

The president shall identify any covered employees of the college and determine whether the college's compensation arrangements comport with the prohibition on incentive compensation, and to the extent that they do not, make necessary modifications to comply. Similarly, the president shall identify any covered service providers, evaluate whether the contract pricing structure is consistent with the prohibition on incentive compensation, and if not, determine what modifications the college can make to any applicable contract.

Approved: 3/28/2023
  • 34 Code of Federal Regulations Part 600 et seq. (U.S. Department of Education Program Integrity Rules)
  • ORS 348.586
  • ORS 244.040
  • ORS 341.556 (Sources of Compensation- Faculty Members)