4.8 Overtime pay

The Fair Labor Standards Act establishes the federal wage and hour law governing the payment of overtime. Only employees in nonexempt positions are eligible for overtime pay. Overtime pay is earned based upon hours worked over 40 hours in the university's workweek, a seven-day period that begins at 12:01 a.m. Monday and ends at 12 midnight Sunday. Overtime work is not to be performed at the discretion of the employee. Any overtime work must be approved and scheduled, in advance, by the employee's department head or supervisor. However, employees who are "suffered or permitted to work," whether approved by the supervisor or not, must record all hours worked and are entitled to overtime. Overtime for full-time employees is automatically compensated as one hour of the employee’s regular hourly rate and ½ hour of compensatory time banked for each hour worked over 40 in an employee’s workweek.

An example of an employee "suffered or permitted to work" would include a nonexempt employee taking work home after the normal work day. Although the supervisor must approve the change in schedule and any overtime in advance, all hours worked, with or without supervisory approval, must be reported and are counted as hours worked. Another example is a nonexempt employee who is at work early and/or who stays late. The supervisor must approve the change in schedule and any overtime in advance. These hours also should be recorded and counted as hours worked, with or without supervisory approval. Employees who do not request and/or receive approval for changes in work schedule and/or overtime but work overtime are subject to discipline.

The university may request employees to work overtime due to special needs of the department. Supervisors will give as much notice as possible to employees when overtime work is anticipated. Advance notice, however, may not always be possible. Refusal to work mandatory overtime will be grounds for disciplinary action up to and including termination.

4.9 Compensatory time

When full-time nonexempt employees work more than forty (40) hours in the university work week, the hours over forty (40) hours are automatically paid at straight time and the additional half (1/2) time will be banked as compensatory time. If requested, the additional half (1/2) time that is banked as compensatory time may be paid out in the following month after it is earned, with departmental budgets permitting. Compensatory time off should be taken within the 12 months immediately following the monthly pay period. An employee who has accrued compensatory time off shall be permitted to use such time within the period stated above if the use of such compensatory time off does not unduly disrupt the operations of the department.

Employees may accrue compensatory time off up to a limit established by the university, but in no case may compensatory time exceed 240 hours. An employee who has accrued compensatory time off shall, upon termination of employment, be paid for the unused compensatory time off at a rate of compensation not less than: 1) the average regular rate received by such employee during the last three years of the employee's employment; or 2) the final regular rate received by such employee, whichever is higher. An employee may, at the discretion of the university, be paid for accrued compensatory time off at a time other than termination. Such compensation shall be paid at the regular rate earned by the employee at the time the employee receives payment.

The accrual of compensatory time applies only when the hours worked are in excess of 40 for the workweek. A department head or supervisor may schedule time off for an employee or offset hour for hour during a particular workweek to compensate for excess hours worked during a previous day of the same workweek.

Review the full policy: G7.02-4 Classification and Compensation