4-52: Overtime Authorization, Compensatory Time, and Flex Work Scheduling – Procedures

1. Authorization for Payment of Overtime or Granting Compensatory Time for Non-exempt Employees
   1. Non-exempt employees may not accrue more than 40 hours of compensatory time. If the employee goes beyond, the supervisor must notify the Office of Human Resources so that it may be monitored.
   2. It is the responsibility of the department supervisor to ensure that proper advance approval is obtained from their appropriate vice president or executive director, and that funds are available within their departmental budget, before overtime hours are worked. The approval of the department supervisor (or designee) on an employee’s time record will constitute authorization for payment.
   3. The department supervisor is authorized to grant compensatory time in lieu of overtime. It is the responsibility of the department supervisor to ensure work is scheduled appropriately and compensatory time granted for work above the standard workweek. The approval of the supervisor on a non-exempt employee’s time record will constitute granting of compensatory time as recorded on the time sheet.
   4. A non-exempt employee must have the prior written approval of their supervisor before overtime may be worked. Supervisors are responsible to ensure that non-exempt employees do not work unauthorized overtime.

2. Compensation for Overtime
   1. Non-exempt employees who are authorized or permitted to work in excess of 40 hours in a workweek are entitled to additional compensation in one of the following ways:
      • Compensatory time off at a rate of one-and-one-half times for all time worked over 40 hours in a workweek, or;
      • Payment for accrued overtime at the rate of one-and-one-half times the employee’s current, regular rate of pay. The regular rate of pay is defined in the FLSA.
   2. Paid leave or holidays taken during a workweek are not considered hours worked in computing overtime.
3. Compensatory Time
   1. Non-exempt employees may be compensated for overtime by receiving compensatory time off at a rate of one-and-one-half times for all time actually worked over 40 hours in a workweek. The following limitations apply:
      • Supervisors must ensure accrued compensatory time hours do not exceed the maximum limits.
      • Supervisors may require an employee to use their compensatory time in lieu of vacation leave to avoid exceeding the limits.
      • An employee who has accrued compensatory time and requests to use it must be permitted to use the time off within a reasonable period of 5 business days after making the request if it does not unduly disrupt department operations. Undue disruption is not merely an inconvenience.
      • All compensatory time earned by non-exempt employees in any workweek must be taken within 60 days once accrued; otherwise the non-exempt employee must be paid for these hours.

4. Payment for Accrued Compensatory Time
   1. A non-exempt employee must be paid for his or her accrued compensatory time under the following circumstances:
      • When the employee’s accrued balance exceeds the maximum accrual limits;
      • When the employee’s FLSA status changes from non-exempt to exempt;
      • When the employee transfers from one department to another for any reason and has a compensatory time balance (the “transferring from” department will pay the compensatory hours due);
      • When the employee is voluntarily or involuntarily terminated; and,
      • When compensatory time earned by a non-exempt employee in any workweek is not taken during the 60-day period following the end of the workweek during which the overtime occurred.
   2. Recordkeeping

In all cases, the time sheet for each non-exempt employee will be the official record of time worked and time taken. Appropriate supporting documentation must be maintained in the department for paid overtime or each granting of compensatory time off made to any employee. All non-exempt employees must record their total workweek hours accurately on their timesheets.

6. Identifying Total Workweek Hours
   1. To identify total workweek hours for the purpose of calculating compensation for a non-exempt employee, the following possible scenarios should be considered:
      • If a non-exempt employee who is scheduled for a 40-hour workweek actually works a total of 45 hours in a workweek that contains no paid leave (e.g., vacation, sick leave, holidays), the employee will be paid for 40 hours at his or her “straight time” rate and will be compensated for the additional five hours at the rate of one-and-one-half times the employee’s current regular rate of pay.
      • If a non-exempt employee who is scheduled for a 40-hour workweek actually works 35 hours, and takes eight hours of paid leave (43 total workweek hours), the employee will be paid for 40 hours at their straight time rate and will also be compensated for the additional three hours at the straight time rate.
      • If a non-exempt employee who is scheduled for a 40-hour workweek actually works 42 hours, and also takes eight hours of paid leave during that workweek (50 total workweek hours), the employee will be paid for 40 hours at the straight time rate, and compensated for the additional 10 hours as follows: eight hours at the straight time rate and two hours at the rate of one-and-one-half times the employee’s current regular rate of pay.
   2. Exempt Employees

There is no legal requirement, nor is the College obligated, to pay overtime or grant flex time to exempt employees. Flex time for exempt employees is at the sole discretion of the supervisor.

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Updated:        5/9/17

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