University Campus Overtime and Compensatory Time for Non-Exempt Employees - HR 213

University Campus Overtime and Compensatory Time for Non-Exempt Employees - HR 213

Abstract:
This Human Resources policy defines overtime practices for non-exempt employees (Assignment Category 01 - Full time regular status, workforce group A) using Campus Kronos, in order to be consistent with the guidelines of the Fair Labor Standards Act (FLSA).
Effective Date:
8/1/2018
Responsible Party:
Contacts:
None Assigned
Administrative Category:
Applies To:
Staff
Material Original Source:

HR Policy 213 - University Campus Overtime and Compensatory Time for Non-Exempt Employees
 
Date Issued: 08/18
Date Revised: n/a
 
 
PURPOSE
 

The purpose of this policy is to define overtime practices for non-exempt employees (Assignment Category 01 - Full time regular status, workforce group A) using Campus Kronos, in order to be consistent with the guidelines of the Fair Labor Standards Act (FLSA). This policy does not apply to UAB Hospital employees.

 
POLICY
 
Overtime and compensatory time are governed by the Fair Labor Standards Act (FLSA) and its implementing regulations. Neither employees nor the University may waive rights or obligations under the Fair Labor Standards Act or agree to accept less or pay less than the required overtime rate or compensatory time earned.
 
Non-exempt (hourly paid) employees who work more than 40 hours during a workweek will be:
 
        Paid at the overtime rate of one and one half times their regular rate of pay; OR
        Granted compensatory time off at the rate of one and one half times the number of hours worked over 40 in a workweek.
 
For the purpose of computing overtime pay in a workweek, sick leave, vacation leave, and other paid leaves do not count toward hours worked. Accrued compensatory time can be used during an approved leave of absence.  However, compensatory time cannot be used to extend a leave of absence.
 
Compensatory time is not used in the calculation of overtime. An employee will not receive overtime pay or earn compensatory time for working more than eight hours in one day or on Saturday, Sunday, or a holiday if the employee has not worked more than 40 hours in a workweek (86 hours worked in a two-week period for uniformed officers).
 
Both the employee and manager must arrive at an understanding that compensatory time will be granted instead of cash compensation prior to overtime eligible work being performed.  Use of compensatory time, like overtime, must be preapproved by the supervisor/manager to ensure the request for compensatory time does not unduly disrupt department operations. Tracking of compensatory time will be maintained in the time and attendance system, Campus Kronos. 
 
Compensatory time is subject to the following provisions:
 
1.    Compensatory time earned must be credited to the employee at the rate of time and one half times all hours worked over 40 in a workweek, the same as overtime.
2.    The balance of compensatory time accrued may not exceed 240 hours (i.e. 160 hours of overtime worked).
3.    When an employee has reached the maximum accrual of 240 hours compensatory time, all additional overtime hours worked must be paid at the overtime rate of one and one half times the employee’s regular rate of pay.
4.    The balance of compensatory time accrued will automatically be paid out in a lump sum upon any of the actions listed below:
·        Change in exemption status from non-exempt to exempt
·        Change from Assignment Category 01 status
·        Transfer to different School or VP unit
·        Termination of employment
·        Retirement
5.    Compensatory time must be paid in a lump sum and may not be used as creditable service or in adjusting the last day worked by an employee.  
6.    Compensatory time may be earned only for overtime which is actually worked and documented in the Campus Kronos system.
7.    Compensatory time may never be taken before it is earned.
8.    Compensatory time must be used before vacation leave.
 
It is the responsibility of the supervisor/manager to monitor overtime and compensatory time and to ensure that employees are accurately reporting any hours worked in excess of 40 hours in a workweek. Non-exempt employees should not work overtime without the prior knowledge and approval of the appropriate supervisors and/or managers. A supervisor must preapprove all overtime pay and compensatory time earned. However, all overtime worked must be compensated, regardless of whether or not it was approved. Every effort should be made to avoid the accrual of large amounts of compensatory time. The supervisor or manager has the discretion to modify the employee’s schedule during a workweek based on the operational needs of the department. An employee who violates the University’s policy on overtime and compensatory time may be subject to disciplinary action.
 
Exempt employees:
 
Exempt employees may not take “compensatory time” off for hours worked beyond 40 hours in a workweek. An exempt position is one that is exempt from the overtime provisions of the FLSA. The category of exempt employees, as defined by the FLSA, generally includes executive, professional, and some administrative employees. An employee in an exempt position is compensated on a fixed salary basis and is not entitled to additional “overtime” pay or “compensatory time off” for work performed beyond 40 hours in a workweek.
 
Grants and overtime:
 
Many federal contracts do not allow overtime (FAR clause 52.222.2) unless preapproved by the sponsoring agency. Likewise, any sponsoring agency could disallow overtime pay. If that should occur then the expense would be moved to the department’s voluntary cost sharing (VCS) account.