Overtime and Compensatory Time

Policy Number: IV.21
Policy Level: Operating Policy

Originally Issued: October 8, 2018

Policy Owner: Vice President for Financial Affairs
Policy Implementation: Director of Human Resources

I.  Policy Statement and Purpose

Overtime and compensatory time are governed by the Fair Labor Standards Act and its implementing regulations.  Neither employees nor the University may waive their 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.  In order to be in compliance with the guidelines of the Fair Labor Standards Act, Athens State University establishes the following overtime and compensatory practices for non-exempt (permanent or temporary) staff employees.

II.  Definitions

Work week/work cycle for all non-exempt employees is 40 hours per work week, measured from 12:01 a.m.  Wednesday to 12:00 midnight the following Tuesday.

Overtime for non-exempt employees is any time worked in excess of 40 hours in a seven-day work cycle.  Overtime does not result until after 40 hours have been exceeded in a work cycle.

III.  Compensation Options

Regular duties and responsibilities can normally be accomplished within the established workday or work week.  Occasionally, some overtime work may be necessary for performance of work duties and responsibilities.  Therefore, certain employees may be required to work overtime to meet operational requirements.

When overtime is required, the non-exempt employee must obtain prior approval from their supervisor utilizing the Overtime Approval Form.  Supervisors should not approve staff members to work overtime without it being deemed as necessary.  Non-exempt employees who work more than 40 hours during a workweek must indicate the preferred method of compensation on the overtime approval form.  The method of compensation cannot be changed once approved by the supervisor.   Methods of compensation include:

  • 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.

IV.  Overtime Pay

As required by The Fair Labor Standards Act (FLSA), Athens State University   pays non-exempt employees time and one half of the employees’ regular rate of pay for all hours worked over 40 in a workweek.   The University does not count paid holidays, paid time off, vacation, personal and sick leave hours taken by an employee toward the calculation of the overtime requirement, because these hours are not actually “worked” and are therefore not considered as hours counted toward overtime under the FLSA.

There is no requirement to pay overtime for hours in excess of eight hours per day, work on Saturday or Sunday, and work on holidays that does not result in exceeding 40 hours of work for a specific workweek.

V.   Compensatory Time

The supervisor may choose to allow non-exempt employees to accrue and use compensatory time off in lieu of pay for overtime hours worked.  Agreement of compensatory time compensation must be entered into voluntarily by the employee prior to overtime hours worked.   Compensatory time is subject to the following provisions:

  • Compensatory time must be credited to the employee at the rate of time and one half times (1.5x) all hours worked over 40 in a workweek.
  • Accrued compensatory time may not exceed 240 hours (160 hours of overtime worked).
  • 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.
  • Upon termination of employment or at retirement, 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.
  • Compensatory time, both accrued and taken, must be documented on employee time records.

Under normal circumstances, exempt employees are not eligible to receive compensatory time off.  However, work schedules for exempt employees may be modified based on the needs of the University and at the discretion of the supervisor and upon approval by the appropriate Vice President.  These modified work schedules for exempt employees do not, under normal circumstances, entitle the employee to additional compensation or compensatory time off.

VI.  Records and Responsibilities

It is the responsibility of the department head/supervisor to monitor overtime and compensatory time and modified work week/work cycles, and to ensure that employees are accurately reporting any hours worked, including those in excess of 40 hours in a workweek. Employees are responsible for accurately reporting all hours worked and for obtaining prior approval for overtime as described above. Off-the-clock work is strictly prohibited. Fraudulent timekeeping and falsification of records are subject to discipline, up to and including termination of employment.

Compensation methods for overtime must be preapproved by a supervisor.  Every effort should be made to use comp time earned within the following pay cycle to avoid the accrual of large amounts of compensatory time.  In order to stay with the 40 hour workweek, the supervisor has the discretion to modify the employee’s schedule during a workweek based on the operational needs of the University.

An employee who violates this policy may be subject to disciplinary action.

VII. Responsibility for this Operating Policy

Policy Owner

As part of the initial approval of this policy by the President and subsequent to the original dissemination of the policy, the Vice President for Financial Affairs is the policy owner for the ongoing evaluation, review, and approval of this policy.  Subsequent reviews and revisions to this policy must be in accordance with approved operating policy procedures and processes.

This policy will be reviewed every two years or more frequently as needed.

Responsibility for Policy Implementation

The President has assigned the responsibility of implementing this policy to the Director of Human Resources, under the direction of the Vice President for Financial Affairs.