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Date Issued January 1, 2008
The Fair Labor Standards Act (FLSA) (29 U.S.C. §207(o))
provides an element of flexibility for
Definitions: Overtime – Hours
worked in excess of 40 hours in a workweek, excluding holiday, vacation and
sick hours. Workweek – Per FLSA a workweek is seven consecutive 24-hour days beginning when the employer chooses. The UWG workweek begins at 12:01 a.m. Saturday and ends at midnight Friday. Compensatory Time – Time off in lieu of monetary overtime compensation, at a rate of one and
one-half hours off for each hour of overtime worked. Overtime Compensation – Pay which is calculated at 1.5 times the regular rate of pay for each
hour over 40 in a workweek. Additional Straight Time – When an employee works over 40 hours in a workweek, and includes any
sick leave, annual leave (vacation), or holiday hours the overtime will be compensated
at the employees regular rate of pay or earn comp-time on an hour for hour
basis. Examples of additional
straight time computation: 1. An employee records total of 48 hours in a workweek,
including 8 hours of sick leave (or annual leave or holiday time). The eight hours will be compensated at the employee’s
regular rate of pay (additional straight time). If comp-time is the method of
compensation, the employee will earn 8 hours of comp-time. 2.
An employee records 48 hours in a workweek, including four hours of sick
leave (or annual leave or holiday time). Four hours will be compensated at the
employee’s regular rate of pay, and four hours will be compensated at time and
one-half. If comp-time is the method of compensation the employee will earn 10
hours of comp-time in this example (four at additional straight time and 4 at
time and one-half). POLICY GUIDELINES Eligibility: Nonexempt employees
that are employed in a regular, full time position are eligible for overtime
compensation or compensatory time off for hours worked in excess of 40 in a workweek.
Nonexempt employees in
a temporary position (casual labor, student employees) will be compensated
monetarily at a rate of one and one-half times their normal rate of pay for
hours worked in excess of 40 in a workweek. A workweek begins
12:01 a.m. Saturday and ends at midnight on Friday. When circumstances arise
that necessitate overtime, it is required that an employee be available to work
overtime. However, employees are not authorized to work overtime, unless
specifically requested by their supervisor. Overtime Guidelines: Supervisors are
expected to manage the workload of employees so that overtime work is not
necessary. When circumstances arise that necessitate overtime the supervisor
must approve the overtime prior to the performance of any work. The supervisor and employee must also
determine the method of compensating an employee for overtime hours worked. There are two options
under FLSA: · Compensatory time at 1.5 times each hour over 40 worked in a workweek. · Overtime pay which is calculated at 1.5 times the regular rate of pay for each hour over 40 in a workweek. As an alternative and where practicable, supervisors are encouraged to schedule equivalent time off during the same workweek to preclude the requirement for overtime pay or compensatory time altogether. When direct
payment (overtime pay) is selected, the departmental manager must identify the
funding to cover the overtime pay prior to authorizing overtime work by an
employee. Supervisors must manage overtime costs within existing
budgets. When compensatory time is selected as the method
of compensation, the following provisions shall apply: 1. The employing unit shall
be responsible for recording any compensatory time accrued and record hours
used. Payroll will not process payment for compensatory time without
documentation from the employing department. 2. Accrued compensatory
time is nontransferable. When an employee is transferring from one department
to another and that employee has a balance of accrued compensatory time, every
effort should be made for the employee to take all compensatory time before the
effective date of the transfer. When this is not possible, an employee
transferring from one department to another shall receive full payment, at the
employee’s regular rate of pay, for the compensatory time balance associated
with the employee’s time in his/her former department. This requirement will
also be enforced should the employee’s position be reclassified from non-exempt
to exempt status. Such payout shall occur with the final paycheck from the
department in which the comp time was accrued or the final check associated
with the non-exempt position. Such payout will be based on the rate of
pay for the position from which the employee is transferring from, not the rate
of the new position. 3. An
employee terminating from the 4. The department that
elects the option of compensatory time accrual will be solely responsible for
the internal record keeping, the transmittal of information for the official
record, and the payment of an employee’s accrued time. 5. Approved
compensatory time is subject to a maximum of sixty hours (forty actual hours of
overtime worked) in one calendar quarter and must be expended or paid out within
90 days of the date earned. An employee who has accrued the maximum number of
compensatory hours shall not be allowed to earn any additional compensatory
time. Any time worked in excess of forty hours in a workweek will be paid as overtime
compensation. 6. Employees
with accrued comp-time should request permission to use comp-time with as much
advance notice as possible, and the supervisor should approve the use of the
comp time unless such approval would cause an undue hardship on the unit.
Managers are expected to monitor the comp time of their employees to ensure it
is taken in accordance with this policy. 7. For
the purpose of determining eligibility for payment of overtime or accrual of
compensatory time, the 8. Employees
in exempt positions are compensated at a monthly salary amount for whatever
periods of time are required to discharge their responsibilities and the
concept of overtime does not apply. |
