INTERNAL OPERATING PROCEDURE. Procedure No. _HR-2005_. Revision(s) 06/27/1996; 02/01/2006; 02/01/2007; 1/26/2017 Related References Purpose

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1 Florida A & M University Office of Human Resources INTERNAL OPERATING PROCEDURE Procedure No. _HR-2005_ Subject: Overtime and Compensatory Time Authority: Rule 60L Florida Administrative Code; , (5) Florida Statues; Fair Labor Standards Act (FLSA) Effective Adopted Date:: 02/1/2006 Revision(s) 06/27/1996; 02/01/2006; 02/01/2007; 1/26/2017 Related References Purpose To establish guidelines to comply with Federal and State laws regarding overtime and compensatory time. Signature of Approving Authority 1.0 General Information All employees of Florida Agricultural and Mechanical University (FAMU) are covered by the Wage and Hour provisions of the Fair Labor and Standards Act (FLSA) unless specifically exempted. The FLSA of 1938, as amended, establishes minimum wage rates, maximum work hours, overtime pay requirements, equal pay standards, and child labor restrictions for employees covered by its provisions. In addition, guidelines governing required record keeping for non-exempt employees are included. In order to comply with the FLSA regarding overtime and compensatory time, a non-exempt employee shall receive pay or compensatory leave at the overtime rate of time and one half (1.5) for time worked in excess of 40 hours in a workweek. Employees exempt from the FLSA are not paid for overtime. All exempt employees are expected to work the hours required to do their job in an effective and efficient manner. 2.0 Responsibilities A. Employees are responsible for obtaining approval prior to working overtime and keeping track of all hours worked. B. Supervisors are responsible for reviewing and approving overtime and compensatory time. C. Time & Labor Representatives are responsible for maintaining accurate records of overtime and compensatory time used; instruct employees on how to enter overtime and compensatory time in irattler. D. Time and Labor Administration is responsible for making necessary adjustments and processing payout of overtime and compensatory time.

2 3.0 Definitions A. Exempt Exempt employees are not subject to the FLSA minimum wage, overtime and recordkeeping provisions. These employees primary duties and functions are of an executive, professional, or administrative nature. In addition, being exempt from FLSA is narrowly defined and an employer must prove that the exemption rules apply. B. Non-exempt Non-exempt employees are covered by and subject to the minimum wage, overtime and recordkeeping provisions of the FLSA. C. Workweek - Overtime is accrued on a weekly basis for each workweek. Unless otherwise specified by collective bargaining agreements, the workweek for FAMU campus is defined as seven (7) consecutive twenty-four hour periods, beginning 12:01 am Friday and ending 12:00 midnight Thursday. Refer to collective bargaining agreements for exceptions to the standard workweek. D. Work Schedule - The standard work schedule for full-time employees is 8:00 a.m. to 5:00 p.m., Monday through Friday. Alternate work schedules may be established for full-time, part-time, or hourly employees and must be approved according to unit procedures. E. Hours of Work - The normal workweek for each full-time employee is forty (40) hours. Hours worked include all time that the employee is required to be on duty or at the prescribed workplace and all time during which the employee is permitted to work. In order to receive overtime, employees must work over 40 hours in a workweek. 4.0 Flexible Work Schedule 1. A flexible work schedule may be established at the discretion of management and require approval by the immediate supervisor. 2. This type of schedule is one that deviates from the traditional schedule of eight hours per day, five days per week. 3. A flexible work schedule is based on each department individual needs and must adhere to FLSA requirements as well as University s policy. 4. A flexible work schedule allows employees to report as early as 7:30 a.m. and depart at 6:00 p.m. 5. For purposes of overtime calculation, our designated workweek is Friday through Thursday. 6. If an employee is required to work more than 40 hours as a result of peak workload or unusual circumstances, he/she must be compensated in keeping with the FLSA and University s policy. 7. The supervisor are designated designee must be present in the workplace when employees are working because their responsible for certifying the hours worked. 5.0 Overtime 1. Overtime is time used to account for and compensate a non-exempt employee for time worked over 40 hours in a workweek. 2. Overtime is compensated at the rate of one and one-half hours for every one hour worked beyond the maximum. 3. All overtime must be pre-approved.

3 4. In determining total overtime hours worked, hours of leave time with pay (personal and major medical leave), compensatory time off and hours taken on approved University paid holidays during the workweek are not counted as time worked in computing overtime pay. 5. For example, an employee works 10 hours for three days than has one eight-hour holiday and takes eight hours of personal leave during a workweek. The employee actually worked 30 hours and not 46. The employee did not work 6 hours overtime. The employee will be paid for the hours at their regular hourly rate of pay for that workweek. 6. Employees paid shift differential will have the shift differential included in the calculation of their regular rate of pay. 6.0 Compensatory Time 1. Compensatory time is time off with pay in lieu of overtime pay for irregular or occasional overtime work. 2. University Support Personnel Services (USPS) and Administrative and Professional (A&P) non-exempt employees are eligible to earn compensatory time. 3. The supervisor must approve earning compensatory leave before the time is worked. 4. Prior approval is required by the supervisor before compensatory leave is used. 5. At the supervisor discretion or other appropriate authority, the employee may be required to use any part of accrued compensatory time. The employee must be notified in writing within five (5) business days to use the hours at any time in increments of full workdays. 6. Employees who have accrued compensatory time may be required to use such leave before using annual leave. 7. There are three types of compensatory time: overtime compensatory leave, regular compensatory leave, and special compensatory leave. The maximum accrual rate is 120 hours for both regular and overtime compensatory leave. A. Overtime Compensatory Leave 1. Non-exempt USPS and A&P exempt employees can be paid with overtime or compensated with overtime compensatory leave. 2. Paid leave such as vacation and sick time is not included in the calculation. 3. A cash payment for overtime is based on one and one-half times an employee s regular hourly rate of pay for each hour of overtime worked. 4. The conversion to one and one-half is calculated automatically by the University s payroll system. 5. After accruing the maximum allowable amount, either the employee s compensatory leave credits will be cashed out or be required to use overtime compensatory leave before accruing additional compensatory time. 6. Please encourage employees to use overtime compensatory leave as soon as possible after it is earned. 7. When an employee is reassigned, promoted, or demoted from their budgetary unit, their overtime compensatory leave credits must be cashed out prior to transitioning into the new position.

4 8. All unused overtime compensatory leave credits must be taken as leave time or cashed out prior to the end of each fiscal year. The payment is processed automatically and done twice a year. 9. Overtime compensatory leave cannot be designated as qualifying under the Family and Medical Leave Act (FMLA). However, the employee may choose to use the leave while on FMLA leave. B. Regular Compensatory Leave a) USPS exempt employees working more than 40 hours in a workweek are eligible to earn regular compensatory leave on an hour-for-hour basis. b) Part-time USPS exempt employees working more than their Full-Time Equivalent (FTE) hours are eligible to earn regular compensatory leave on an hour-for-hour basis. c) Employees will not be allowed to accrue more than 120 hours of regular compensatory leave credits. d) When an employee is moving to another USPS exempt position within the University, they may transfer regular compensatory leave to the other position. e) When an employee moves from a position eligible to accrue regular compensatory leave to an ineligible position, he/she may retain the accrued regular compensatory leave but must use it before using any annual leave. f) All unused regular compensatory leave will be lost when moving to a faculty appointment. g) A request to used regular compensatory leave should be handled in the same manner as requests to use accrued annual leave. h) In most cases, regular compensatory leave hours accrued over the 120 hour maximum will be lost. However, under limited circumstances, USPS exempt employees may be paid for regular compensatory leave for hours accrued in excess of the 20 hours. Approval must be received by the appropriate authority before cashed out. C. Special Compensatory Leave a) Special compensatory leave has an hour-for-hour value and can only be earned in conjunction with holidays or certain types of administrative leave. b) USPS and A&P non-exempt employees with the exception of employees receiving workers compensation salary payments are eligible to earn special compensatory leave credits. c) Special compensatory leave is earned most often in conjunction with a holiday. d) A USPS or A&P non-exempt employee that works on a holiday will earn special compensatory leave credits for the number of hours worked not to exceed eight hours. As an alternative to accruing special compensatory leave, your supervisor may wish to adjust your work schedule within the workweek in which the holiday falls. If your schedule is adjusted and you take another day off in the workweek, no special compensatory leave credits will be earned. e) A holiday may sometimes fall on an employee s regular day off. If this is the case, employees will be credited with special compensatory leave equal to the number of hours in their regular workday not to exceed eight hours. As an alternative to your accruing special compensatory leave, your supervisor may wish to adjust your work schedule by allowing you to take off another day during that workweek (no special compensatory leave credits will be earned).

5 f) When the holiday falls on your regular day off but you must work, the number of hours worked on the holiday shall be counted as hours worked. In addition, you normally will be credited with special compensatory leave equal to the number of hours in your regular workday not to exceed eight hours. g) Special compensatory leave is provided to compensate an employee for administrative leave for jury duty or court appearance when the employee worked forty (40) hours the week during which the jury duty or court appearance occurred. h) Special compensatory leave is provided to employees who perform their essential duties during an emergency closing for hours worked during the closing. In addition, leave is provided to employees who perform their essential duties for hours worked outside of their normal work schedule to prepare for or respond to a declared University emergency closing. i) When an employee is reassigned, promoted, or demoted from their budgetary unit, their special compensatory leave credits must be cashed out before the effective date of their new position. j) The appropriate authority may elect to cash out all special compensatory leave credits when employees transfer within their budgetary units. In addition, all special compensatory leave credits typically must be taken as leave time or be cashed out prior to any scheduled salary increases. k) All unused special compensatory leave credits must be taken as leave time or cashed out prior to the end of each fiscal year. The payment is processed automatically and done twice a year. 7.0 Official University Travel 1. When an employee is traveling to work and home, this is not counted as hours worked. 2. If an employee is required to attend a meeting or conference, or otherwise work at an out-of-town location, this attendance or work is considered time worked. 3. Travel time on the first and last day of the event, whether or not such travel occurs during the employee s normal work schedule, is considered time worked. 4. If an employee is required to attend a one-day meeting or conference, or otherwise work at an out-oftown location, such attendance or work, including travel time to out-of-town meetings, conferences, and work locations, whether or not such travel occurs during the employee s normal work schedule, is considered time worked. 8.0 Shift Differential Pay 1. Shift differential pay is an additional amount of pay awarded to employees who are assigned to an evening, night or weekend, rotating, or split-shift. 2. The working hours can be in the evening (between 6 pm and 12 am) or night shift (between 12 am and 6 am). 3. Shift differential rates are included in the calculation of the hourly rate of pay to determine overtime compensation. 9.0 On-Call Pay 1. On-Call Pay is time during which an employee is required to inform their employer how they can be reached or leaving word of where he/she can be reached and is required to respond to emergency signals or calls.

6 2. Employees are not considered to be in on-call status unless he or she has previously been informed by the University of the On-Call Assignment. 3. Employees who are required to be on-call during the weekdays (Monday Friday) shall be compensated by payment of one dollar ($1.00) for each hour such employee is required to be on-call. 4. Employees who are required to be on-call on a Saturday, Sunday or University holiday will be compensated by payment equal to one-fourth (1/4) of the employee s base rate of pay for each hour employee is required to be available Call Back Pay 1. Call back pay is pay for an employee to report to work either before or after normal hours of operations to perform emergency services. 2. When an employee is called back to perform work beyond the employee s scheduled hours of work for that day, a minimum payment may be required. 3. When an employee is called back for emergency services which require less than two hours on the job, or when no work is available when he or she reports, the employee will be compensated a minimum of two hours Procedures 12.0 Records 1. Supervisor must be familiar with the University's policies which govern overtime, compensatory time, hours worked and time reporting. 2. Be familiar with the terms of the applicable Collective Bargaining Agreement related to overtime, compensatory time, hours worked and time reporting. 3. Remind employees they are responsible for knowing the time tracking procedures contained in this policy and of the importance of adhering to all policies and procedures. 4. Ensure you provide employees with a time tracking mechanism (time card, electronic time-keeping system, time sheet) that meets the minimum criteria set in this policy. 5. Review and approve time on a weekly basis. Correct any erroneous or missed entries on a timely basis. 6. If you discover that overtime or compensatory time was reported but not pre-approved, you should address it as a policy violation which may lead to disciplinary action(s). However, you must still pay the time as time worked, regardless of whether pre-approval was granted. 7. If you know or have reason to believe that an employee worked more than the hours they reported (whether overtime or not), you should address it as a policy violation which may lead to disciplinary action(s). However, you must still pay the time as time worked, regardless of what they reported. 8. Provide as much advance notice to the employee(s) of the need to work overtime as is practicable. 9. Retain records of time sheets and other records created per this policy for at least three years. 1. Employers covered by FLSA are required to maintain wage and time records on employees. By federal and state regulations, non-exempt employees must properly record daily hours and minutes worked on time records. Given the University practice of adhering to accepted principles of public accountability

7 involving the appropriate use of budgeted funds, exempt employees must maintain similar time records on both a daily and work week/work period basis. 2. Time records must include hours worked each workday and the total hours worked each work week/work period and must be approved by the employee s supervisor in the space provided on the timesheet. 3. Employees must use University approved timesheets. 4. If a customized time sheet or record keeping system is operationally necessary, a copy of the time sheet or system must be submitted to the Office of Human Resources for approval Violations Violations of these procedures or fraud in connection with the payment or accumulation of overtime, compensatory time, or special compensatory time will subject employees to discipline, up to, and including discharge from employment with the University.