System Management - Payroll
C.E.S.P. 3-1: Compensation of Overtime
Date Revised: 4-19-2017
Summary: Establishes policy and procedures governing compensation for overtime work by employees covered by the Federal Fair Labor Standards Act.
• Work Week - The official work week begins at 12:01 a.m. on Sunday and ends at midnight on Saturday.
• Compensable Time - All time during a work week for which compensation is due, including work time, leave, or holidays. The employee may not "volunteer" to do work for which he/she would normally be paid without compensation. Any work performed with the knowledge and acquiescence of management must be included in compensable time.
• Overtime - Time worked which results in compensable time in excess of 40 hours in a work week.
• Overtime Pay Rate - This is the hourly rate applied to the overtime. It may be at "straight time" (the annual salary divided by 2080) or 1 1/2 times the straight time rate, depending upon the number of hours actually worked in the week.
• Compensatory Time Off - Time off granted in lieu of cash payment for overtime. It may be on an "hour-for-hour" basis or 1 1/2 times the overtime hours, depending upon the number of hours actually worked in the week. When circumstances allow, the supervisor may make adjustments in the work schedule to prevent total compensable time for the week from exceeding 40 hours. (Example: An employee required to work only four extra hours on Monday could be assigned to work only four hours on another day in the same week. This type of adjustment could also be made in advance, but within the same work week.) Compensatory time in lieu of cash payment is the preferred practice. Unless instructed otherwise by the Associate Vice President for Agriculture - Extension, the Financial Service Office will assume that compensatory time rather than cash payment will be taken for overtime. Any authorization of cash payment requires advance written instruction to the Financial Services Office from the Associate Director or Associate Vice President for Agriculture – Extension.
II. Employees Covered
- All employees paid on an hourly basis.
- Classified employees, except those who qualify for administrative exemption.
- Certain non-classified employees who do not meet the requirement for professional or administrative exemption.
• Overtime must be approved in advance by the supervisor. Supervisors must notify the Financial Services Office of overtime they have approved by emailing firstname.lastname@example.org
• This policy prohibits work in the following situations without prior authorization:
Starting to work before 8:00 a.m.
Working during the lunch period.
Working after 4:30 p.m. (or other regular closing times).
Working on weekends or holidays.
Performing work at home or other locations.
• All authorized overtime will be compensated.
• Authorized compensatory time earned and compensatory time used must be reported on the Division Time Sheet
• Supervisors are responsible for assuring that compensatory time earned in one week will be used as soon as possible, preferably by the end of the next week, so that employees will have used all accumulated compensatory time by the end of the year. Up to 240 hours of accumulated compensatory time may be carried over at year end. Supervisors are responsible for assuring employees have sufficient compensatory time available to cover hours charged to Compensatory Time. If compensatory leave balances are insufficient for the amount of leave charged, the excess hours will first be deducted from the employee’s annual leave bank. If the annual leave bank is exhausted and excess hours remain, the excess hours will be deducted as Leave Without Pay.
IV. Special Circumstances
- For specific information regarding determination of compensable travel time, go to Determining Compensable Travel Time for Non-exempt Employees
- Meal time is a span of at least 30 minutes during which an employee is completely relieved of duty and free to use the time for his/her own purposes. It is not counted as compensable time.
- 4-H Program Assistants who are also volunteer leaders or 4-H parents may attend 4-H activities in their volunteer/parental capacity so long as they are not permitted to perform duties for which they would otherwise have been paid. The individual must complete Form F.Y.4 - H - 214, Employee Agreement on Attendance at Events as a Volunteer, that he/she is attending in an unofficial capacity and should not perform functions that would not be performed by other non-employees.
- 4-H Program Assistants who participate in the State 4 - H O - Rama in their official capacity will be considered to be on duty from the time of the first activity each day until released from duty at bedtime, except for meal time as indicated above.
- Weekend work is considered to be compensable time in the same manner as work performed during the week. Note that the week begins on Sunday and ends on Saturday.