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 the University's official time keeping system, in order to be consistent with the guidelines of the Fair Labor Standards Act (FLSA) and/or applicable state law.

Effective Date: 8/1/2018

 

Review/Revised Date: 7/3/2022

 

Category: Human Resources

 

Policy Owner: CHRO

Policy Contact: Executive Director Human Resources - Compensation

 
   
 

 

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 the University's official time keeping system, in order to be consistent with the guidelines of the Fair Labor Standards Act (FLSA) and/or applicable state law. This policy does not apply to UAB Hospital employees.


POLICY

 
Under the FLSA, 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.
An employee cannot agree to accept less pay or compensatory time than required by the FLSA.  

For the purpose of computing overtime pay in a workweek, sick leave, vacation leave, and other paid leaves do not count toward hours worked. Compensatory time is also not used in the calculation of overtime.  Accrued compensatory time can be used during an approved leave of absence.  However, compensatory time cannot be used to extend a leave of absence.
 
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.
 
The employee and manager must agree 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 University's official time keeping system. 
 
Compensatory time is subject to the following provisions:
 
Accruals
 
  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 hours worked beyond 40 in a work week must be paid at the overtime rate of one and one half times the  employee's regular rate of pay.
 
Compensation
 
The balance of compensatory time accrued will automatically be paid in a lump sum upon any of the actions listed below:
  1. Change in exemption status from non-exempt to exempt
  2. Change from Employment Assignment Category 01 (full-time) to a different employment status which is not eligible for compensatory or over time
  3. Transfer to different School or VP unit
  4. Termination of employment
  5. Retirement
  6. Compensatory time paid upon any of the actions listed above must be paid in a lump sum and may not be used as creditable service time or in adjusting the last day worked by an employee.  
  7. Compensatory time may be earned only for overtime which is actually worked and documented in the University's official time keeping system.
  8. Compensatory time may never be taken before it is earned.
  9. 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.
 
UAB Police Department

Non-exempt UABPD officers working more than forty (40) hours in a seven-day work week (Sunday to Saturday), can chose to convert up to eight (8) of those overtime hours to compensatory time for that workweek.  Sworn officers must file in writing at the beginning of each pay period a certified statement to the departmental timekeeper as to their election to request compensatory time If compensatory time is elected, such leave may be taken at any time during the calendar year in which it is earned with the approval by their supervisor or manager, except during times of emergency.

Once an officer has elected to be compensated at an overtime rate and has been paid accordingly, the officer may not subsequently attempt to convert their hours worked to compensatory time.  

UABPD will notify the employee, within a reasonable time, whether the compensatory time request is granted.  All compensatory time must be maintained in the University's official time keeping system.  

The balance of compensatory time accrued may not exceed 240 hours, i.e. 160 hours of overtime worked. 

Based on the critical nature of the services provided by UABPD, it is vital that the department maintain necessary levels of staffing.  It is recommended that employees request use of compensatory time at least three (3) working days (72 hours) in advance to allow their supervisor time to determine if minimum staffing requirements can be met.  

The supervisor should offer the employee, within a reasonable time, an alternate date(s) off if the initial request to use compensatory time cannot be approved.  

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  account. 
 
Date Issued: 08/18