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Policies and Procedures
Overtime Compensation
(Non-Exempt Employees Only)
(updated 06/08/2014)


General Information

Under the Fair Labor Standards Act (FLSA), employees in positions which are determined to be "non-exempt" are eligible for overtime compensation. Effective January 18, 1995, employees in non-exempt positions are eligible for overtime compensation for all hours worked over 40 in a work week. Hours paid but not worked, such as sick or vacation leave or compensatory time used will not count toward overtime; however, holiday credit (the paid time for a holiday when it is not worked) does count toward the calculation of overtime eligibility for all university support staff non-exempt employees. 

Supervisors must approve overtime hours before they are worked. Each department should have procedures for approving overtime before it is worked. A record of approved overtime should be kept in the department. Departments can use the Overtime Approval Form or can develop a similar form to use.

If a non-exempt employee works more than 40 hours in a work week, his or her supervisor must approve compensating hours worked over 40 with one of the following: 1) " time for time " off; 2) compensatory time; or 3) overtime pay.

An eligible employee shall not accrue more than 120 hours of compensatory time for overtime hours. Any eligible employee who has accrued 120 hours of compensatory time off shall, for any additional overtime hours of work, be compensated with overtime pay.

Non-exempt employees should sign a Compensatory Time Agreement at the time of hire.

For more information: http://www.pittstate.edu/office/hr/payroll-information/flsa-information-index.dot

 

"Time For Time"

If a non-exempt employee is given "time for time," the employee is given the same amount of time off as the number of hours worked over 40. Time for time off must be taken in the same week as the overtime hours were worked. No special documentation is required if an employee takes time for time. The employee reports actual hours worked on the time sheet.

 

Reporting Compensatory Time

If a non-exempt employee is approved for compensatory time, he or she earns 1.5 hours of compensatory time for every hour worked over 40. Compensatory time is taken later than the week the overtime was worked.

Compensatory Time
Earnings Code: CME
Multiplier: 1.5 hours for every1 hour worked over 40.
Description: Used to report hours worked over 40 when the employee wants compensatory time instead of overtime pay.
Used By: University Support Staff Non-Exempt
Unclassified Non-Exempt
Count Towards FLSA? N/A
Count Towards Leave Accrual? N/A


Reporting Overtime Pay

If an employee is not given time for time off or does not earn compensatory time, the employee must receive overtime pay. Overtime pay is paid at the rate of 1.5 times regular rate of pay for each hour worked over 40.

Overtime Pay
Earnings Code: OTP
Multiplier: 1.5 times regular rate of pay for every 1 hour worked over 40.
Description: Used to report hours worked over 40 when the employee wants overtime pay instead of compensatory time.
Used By: University Support Staff Non-Exempt
Unclassified Non-Exempt
Count Towards FLSA? N/A
Count Towards Leave Accrual? N/A

 

Reporting Example -- Compensatory Time or Overtime Pay

Olive Overtime regularly works from 8:00 a.m. to 4:30 p.m. Monday through Friday. During the pay period 1/12/97 - 1/25/97 she worked and took leave as follows:

Week 1: Monday - worked 8 hours
Tuesday - worked 8 hours
Wednesday - worked 8 hours
Thursday - worked 8 hours
Friday - worked 12 hours

She is eligible for 4 hours comp time (CME) or overtime pay (OTP) on Friday of Week 1 because she has worked more than 40 hours. See Earnings codes that count towards FLSA.

 

Week 2: Monday - worked 8 hours
Tuesday - worked 8 hours
Wednesday - worked 4 hours; used 4 hours sick leave
Thursday - worked 8 hours
Friday - worked 12 hours

She is not eligible for comp time (CME) or overtime pay (OTP) for Week 2 because she has not worked more than 40 hours. See Earnings codes that count towards FLSA. There are two ways to report the time for week 2. Under option #1 (below), the employee reports the total amount of leave taken and hours worked. The employee will be paid for 44 hours at the regular rate of pay. Under option #2 (below), the employee reduces leave taken so that they are not paid for more the 40 hours at the regular rate. Olive does not report the 4 hours of sick leave taken on Wednesday and is then paid for 40 hours at regular rate.

Click here to see the time sheet for Option #1.
Click here to see the time sheet for Option #2.

 

Compensation Time Used

Used for reporting comp time taken for compensatory time earned during a previous pay period.

Earnings Code: CMT
Multipler: 1.0 times regular rate of pay
Description: Used to report the use of comp time
Used by: University Support Staff Non-Exempt
  Unclassified Non-Exempt
Count Towards FLSA? No
Count Towards Leave Accrual? Yes

 

Click here for more information on reporting time worked and leave taken.