Overtime and Compensatory Time Procedure - 63.04.02
College Policy Number/Title:
It is the practice of Howard Community College employees to complete their necessary workload within the typical workweek. However, workload demands may require overtime and supervisors may require or request that a non-exempt employee work overtime. Similarly, non-exempt employees may recognize the need for overtime work and offer to work beyond regular hours.
Employees may not work overtime without prior authorization by their supervisor. There are at least two reasons for this requirement:
- the Fair Labor Standards Act (FLSA) and amendments do not permit non-exempt employees (the definition of non-exempt employees is specified in procedure 63.03.01, Employment Definitions) to work overtime without compensation; and
- the supervisor or cost center administrator must take the overall budget into consideration before authorizing overtime work and compensation.
Work units must have a system for ensuring fairness in making overtime assignments. It is the responsibility of the unit supervisor, in consultation with the office of human resources, to make this system known to employees and to be accountable for its operation.
In compliance with the Fair Labor Standards Act relating to overtime pay, non-exempt employees who work in excess of 40 hours during the work week will be paid at an hourly rate equal to 1.5 times their regular rate of pay for the additional hours. Overtime hours worked between 37.5 and 40 hours will be compensated at the regular rate. The 40 hours apply only to hours actually worked; annual leave, sick leave without medical documentation, personal leave, or other paid leave that do not represent hours actually worked are not included in overtime rate. However, approved medically documented sick leave, holidays, inclement weather, or other emergency closings where the entire college is closed, is included as hours worked.
In a week in which a non-exempt employee works beyond their normal workweek but not more than 40 total hours, the employee may elect to receive payment for the excess hours or compensatory time; in either case, the payment will be at a straight hour-for-hour rate.
When a non-exempt employee works in excess of 40 hours, the employee may elect to receive payment for the hours worked beyond 40 or compensatory time. In either case, the employee is paid at a time-and-a-half rate. In such cases, payment for the excess hours worked up to 40 is at the straight hour-for-hour rate rather than compensatory time, regardless of whether the employee elects for the hours beyond 40 to be paid or compensatory time.
Calculation and Compensation
Non-exempt employees at Howard Community College are assigned to work either a 37.5-hour or 40-hour workweek. If employees are scheduled to work a 37.5-hour week, overtime pay or compensatory time is accrued at the same rate as regular wages between 37.5 hours and 40 hours of work. Accrual of overtime pay or compensatory time above 40 hours is earned at the rate of 1.5 hours for each hour over 40 worked in one workweek (including certain other categories as noted above).
The normal workweek for non-exempt staff is from 12:00 a.m. Saturday until 11:59 p.m. on Friday.
Non-exempt employees are permitted to use compensatory time, just as they would use personal or annual leave. Compensatory leave must be used within a reasonable time after it is requested, subject to the operating needs of the college.
A maximum of 50 compensatory hours may be accrued by non-exempt employees at any given time. All hours worked in excess of this compensatory time maximum will be paid in overtime wages, as described above.
Upon termination of employment at the college, the employee will be paid for all accrued compensatory time at the employee's current pay rate or at the average of the employee's pay rates from the past three years, whichever is higher.
Compensatory time does not count as "hours worked" in the week in which it is taken. Compensatory time is paid at the employee's regular rate because it is initially credited at time and one half for each hour of overtime over 40 hours.
Employees who are called back to work during non-working hours for an emergency or special overtime assignment are expected to work and will be paid for a minimum of four hours.
Accountability
Supervisors are accountable for ensuring that non-exempt employees do not work uncompensated overtime hours and are accountable for the need for and results of overtime expenditures.
Effective Date: 06/30/22
President's Office Use: CHRO/VPAF