Overtime & Overtime Compensation

Overtime. Under the Fair Labor Standards Act (FLSA), any non-exempt employee must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rate of pay. Stated another way, if an employee's total hours actually worked in a workweek are not more than 40, the FLSA overtime rules do not apply.

Overtime Compensation. Any non-exempt employee who exceeds the maximum forty-hour (40-hour) workweek will be asked to take time off in lieu of overtime pay. This time off is referred to as "compensatory time." Compensatory time is granted at the rate of one and one-half hours off for each overtime hour worked beyond forty hours per week. If it is not feasible for a non-exempt employee to take compensatory time off, he or she will receive overtime pay at the rate of one and one-half times the regular rate of pay for each hour of overtime worked.

Overtime pay instead of compensatory time must be approved at the Vice-Presidential level.

  • Compensatory time may be accumulated and used at a later date.
  • The accumulated balance of compensatory time may not exceed 240 hours.
  • All compensatory time must be used before any absence is charged to annual leave.
  • All compensatory time must be reported to and accounted for in the employee’s timecard. Anyone charging an absence to compensatory time must report this time used on an absence report. All compensatory time taken must be approved by your immediate supervisor.

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