Extra Duty Compensation (EDC)

To comply with the FLSA salary threshold change, employees who are currently paid a salary below the $47,476* threshold will change to hourly effective 10/9/2016.  To following policy on Extra Duty Compensation (EDC) will ensure compliance with the FLSA.

*Positions with the primary duty of teaching are not subject to the FLSA salary threshold.  Employees on teaching positions can be paid a salary below the threshold.

Unless the EDC is for compensation for teaching a class (i.e. performing duties that are exempt from the salary threshold), an hourly (non-exempt) employee cannot be paid for work from an EDC.  Every hourly (non-exempt) employee must report hours worked each week on a time sheet or time card.  Hours will be paid either at the regular rate or overtime compensation (compensatory time earned or overtime pay).  Only hours paid as overtime can be paid from a different cost center from the employee’s regular cost center.

• Example #1:  Gus Gorilla is an hourly (non-exempt) employee in International Studies.  He works 10 hours one week extra helping with orientation.  In the past, he may have been paid a flat amount on an EDC form.  Effective 10/9/2016, he needs to report the 10 hours in the week the work was performed.  Assuming that he worked 40 hours during the week performing his regular position duties, he would receive 40 hours regular pay and 10 hours of overtime compensation (compensatory time earned or overtime pay).  The 10 hours of overtime compensation could be paid from a different cost center if he received overtime pay. 

• Example #2:  Gus Gorilla is an hourly (non-exempt) employee in International Studies.  He works 10 hours one week extra helping with orientation.  In the past, he may have been paid a flat amount on an EDC form.  Effective 10/9/2016, he needs to report the 10 hours in the week the work was performed.  If GUS took 12 hours of vacation during the week, he would be paid for 50 hours at regular rate (38 hours regular work and 12 hours vacation).  He does not have over 40 hours worked and so he is not eligible for overtime compensation (compensatory time earned or overtime pay).  All 50 hours will be paid from his regular cost center.