Administrative Policies and Procedures Manual - Policy 3305: Overtime

Date Originally Issued: 07-01-1987
Revised: 11-01-1991, 01-01-1997, 03-21-1997, 07-01-2001, 01-01-2008

Authorized by RPM 6.3 ("Privileges and Benefits")

Process Owner: Vice President for Human Resources

1. General

The Fair Labor Standards Act (FLSA) requires that nonexempt employees be paid overtime premium pay for all hours considered time worked, as defined in Section 3.1. below, in excess of forty (40)hours in a workweek. The FLSA does allow overtime hours to be determined on an alternate work period for patient care facilities (refer to Section 3.2. herein). This policy describes procedures, which comply with the FLSA, for assigning, reporting, and paying overtime. This policy does not apply to employees covered by a collective bargaining agreement. Refer to the applicable agreement for overtime procedures. This policy does not apply to exempt employees.

Normally, supervisors arrange workloads and work schedules so that an employee can complete his or her duties and responsibilities in a forty (40) hour workweek.  However, supervisors may require employees to work overtime. When employees are hired, they should be told if overtime will be required, how often, and departmental procedures for determining the assignment of overtime.

2. Authorization Required

A supervisor must authorize overtime before the start of the overtime work. Supervisors will assign overtime in a fair and reasonable manner, taking into consideration the needs of the unit, and the abilities, availability, and willingness of employees. An employee who refuses to work overtime or who works unauthorized overtime may be subject to disciplinary action. Any nonexempt employee who works overtime must be compensated at the premium rate for all overtime worked. Compensation (payment or compensatory time off) must be in accordance with Section 4. herein.

3. Overtime Hours

Overtime is time worked, exclusive of meal breaks, in excess of forty (40) hours in a standard work period of seven (7) consecutive days as defined in Section 2. of UAP 3300 ("Paid Time"). Alternative work periods are allowed by the FLSA (refer to Section 3.2. herein).

3.1. Time Worked

Time worked for overtime purposes consists of any hours worked during the work period less sick leave, annual leave, and any leave with pay (such as jury duty). Refer to UAP 3415 ("Leave With Pay"). For the purpose of computing overtime compensation, paid holidays are considered time worked. Time worked does not include the meal break, unless an employee is directed by his or her supervisor to perform work related duties or remain on duty during the meal break. Non-exempt employees should take their meal break away from the work site or their desk to avoid confusion on overtime liability. Refer to Section 7. of UAP 3300 ("Paid Time") for more information on time worked and whether such time is included in determining time eligible for overtime.

3.2. Patient Care Facilities

In patient care facilities, if there is agreement or understanding between employer and employee, a work period may be defined as fourteen (14) consecutive days. Overtime will be paid for time worked in excess of eight (8) hours in any work day and in excess of eighty (80) hours in the fourteen (14) day work period.

4. Overtime Pay

When a nonexempt employee works authorized overtime, he or she is paid at one and a half (1-1/2) times the employee's regular rate of pay (base pay plus shift differential, if applicable). If the supervisor and the employee both agree in writing, a nonexempt employee may be granted compensatory time off in lieu of overtime pay. This decision may not be used as a factor in determining which employee to assign to work overtime. The compensatory time must be used within 90 days of the date in which it was earned or it will be converted to overtime pay.  Compensatory time may not be taken until the pay period following the date in which the compensatory time was earned.  If an employee does not want compensatory time in lieu of overtime pay, the employee must be paid overtime. Compensatory time off is calculated at one and a half (1-1/2) times the overtime worked and must comply with UAP 3310 ("Compensatory Time").

Exempt employees do not receive overtime pay.

5. Reporting and Payment

Supervisors report overtime worked by nonexempt employees electronically using the HR Banner System in accordance with UAP 2610 ("Time and Leave Reporting").  The employee's overtime pay is normally included in the employee's next regularly scheduled payroll.