Compensatory & Overtime
Who is eligible for overtime?
All University positions are defined as "exempt" or "nonexempt" in order to comply with the federal Fair Labor Standards Act (FLSA) and State Wage and Hour regulations. The FLSA governs overtime requirements. An "exempt" position is not subject to the provisions of the FLSA with respect to overtime. "Nonexempt" applies to those individuals employed in positions that are subject to the FLSA provisions and are thereby eligible for overtime. The determination of whether a position is exempt or nonexempt is made by Human Resource Services based on the duties performed, reporting relationships, FLSA guidelines and interpretive letters, and recent court decisions.
When is an employee eligible for overtime?
When a nonexempt employee is required to work in excess of 8 hours per day or 40 hours per week, the employee is eligible for overtime at the rate of 1 ½ times the regular rate of pay for all overtime hours worked. When an employee has agreed to work an alternate schedule (e.g., 10 hours/day, 4 days/week), only those hours in excess of 40 hours per week are considered overtime and are paid at the overtime rate.
What is the difference between overtime and compensatory time?
Nonexempt employees are entitled to earn overtime. However, upon mutual agreement between the employee and the supervisor, a nonexempt employee may receive compensatory time in lieu of overtime. Both overtime and compensatory time accrues at the rate of 1 ½ for each one hour of overtime/compensatory time worked.
Exempt employees are not entitled to payment of overtime. A non-agricultural exempt employee is entitled to accrue compensatory time. Compensatory time is accrued on an hour-for-hour basis for all authorized time worked in excess of 40 hours per week.