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Personnel Policy and Procedures Manual

Working Hours, Position Classification, and Wage and Salary Administration

PPP # 60-30
Procedure on Overtime

PURPOSE

This Procedure implements the Policy on Compensation for Overtime as described by PPP# 60-00.

DEFINITION OF OVERTIME

1. Overtime work is required work performed in excess of a 40-hour workweek, which is authorized by a supervisor.

2. Overtime pay is defined as that monetary compensation paid for eligible overtime work.

3. Compensatory time is defined as paid leave credited to an employee in lieu of paid overtime, and is in addition to paid annual leave and other paid leave.

4. Leave year is that period of time beginning with the first full pay period of a calendar year and ends with the payroll period in which December 31 falls.

5. Base pay rate includes all approved leave with pay for the purpose of computing overtime.

DEPARTMENT DIRECTOR/ SUPERVISOR RESPONSIBILITY

1. Each Department Director:

a. May established policies and procedures providing non-exempt employees compensatory time in lieu of overtime pay subject to the provisions of the FLSA and any applicable Union Contract.

b. Shall establish policies and procedures for authorizing overtime work.

2. All supervisors, regardless of level, so authorized by the applicable department director, are responsible for:

a. Planning, scheduling, and assigning work to assure that overtime is worked only when absolutely necessary or when emergencies occur;

b. Authorizing employees to work overtime;

c. Ensuring that authorized overtime work and compensation is properly entered and approved on leave, attendance, and paper or electronic timesheets;

d. Administering the policies and procedures which govern or relate to overtime work and overtime compensation; and

e. Assigning overtime work to represented personnel in accordance with the terms of the agreement between the City and AFSCME Local 1453.

PRINCIPLES

1. Employees Covered by a Collective Bargaining Agreement.

To the extent that any provision contained in this PPP #60-30 conflicts with an express provision of a collective bargaining agreement, such agreement shall control with respect to the conflicting provisions.

2. Limitations on Overtime Work; Approval Required

a. The assignment of overtime is an exercise of management discretion reserved to supervisors.

b. Overtime work for which compensation is given shall be authorized in advance for eligible employees in exempt and non-exempt classes.

c. Advance authorization is not required in the case of a bona fide emergency, where overtime work is needed to prevent immediate danger to life, health, and/or property.

3. Eligibility for Overtime Compensation.

a. All employees in non-exempt classifications are eligible for compensation (pay and/or compensatory time) for approved overtime worked in excess of 40 hours per workweek. The type of overtime compensation available to Union-represented employees is governed by the terms of the applicable collective bargaining agreement.

b. Except as provided in subsection c below, employees in exempt classifications are eligible for compensatory time for approved overtime worked in excess of 40 hours per week, but are not eligible for overtime pay.

c. Department heads and employees holding positions established by the City Charter are not eligible to earn overtime pay or compensatory time.

4. Minimum Reimbursable Periods

The minimum compensable period for overtime work is one-quarter hour for all eligible employees.

5. Compensation

a. Exempt employees. Exempt employees may be compensated only by compensatory time.

b. Non-exempt employees. Non-exempt employees may be compensated by overtime pay or by compensatory time in lieu of overtime pay, or any combination thereof as determined by the applicable department director, or the Director’s designee. Subject to the provisions of the FLSA, non-exempt employees are compensated at a rate of one hour for each hour worked in excess of their normal workweek not exceeding 40 hours, and at a rate of 1½ hours for each hour of approved overtime worked in excess of 40 hours in a workweek.

OVERTIME COMPENSATION - EXEMPT EMPLOYEES

1. Employees exempt from overtime pay (PPP# 60-00) are entitled to receive one hour of compensatory time for each hour of approved overtime worked in excess of 40 hours in the workweek.

2. Exempt employees shall be paid their normal base rate of pay plus compensatory time on an hour-for-hour basis for all hours worked on holidays or on their regular time off in excess of 40 hours in a workweek.

3. Except as otherwise provide below, exempt employees may carry over no more than 80 hours of accrued compensatory time from one leave year to the next. If authorized by the City Manager, exempt employees may elect to have 50% of the value of their compensatory leave accrued beyond 80 hours distributed into an employer-sponsored health or retirement plan consistent with IRS regulations.

a. With the written concurrence of the Director of Human Resources a department director may allow an exempt employee to carry over some or all of the employee’s excess compensatory time to the next leave year if the employee did not use the excess compensatory time because of special circumstances or workload demands. All such exceptions to the accrued compensatory time cap must be made in writing. However, in no instance will the accrued compensatory time exceed limits as set forth under the Fair Labor Standards Act.

b. If such carry over is authorized, the non-exempt employee must use the excess by the end of the next leave year.

4. Exempt employees will not be paid for any unused compensatory time at the time of their termination of service.

OVERTIME COMPENSATION - NON-EXEMPT EMPLOYEES

1. Weekly Overtime

Non-exempt employees who are required by their supervisors to work overtime shall be paid for such overtime at the rate of one-half (1 1/2) times their normal straight time base rate of pay or shall be provided compensatory time in lieu of overtime pay at the rate of one and one-half (1 ½) times the number of overtime hours worked. The one and one-half (1 ½) overtime pay and compensatory time rate will only apply to hours worked in excess of 40 hours per workweek. Non-exempt employees whose normal workweek is less than 40 hours will receive their normal time base rate of pay time for each hour worked that does not exceed 40 hours per workweek.

2. Work on Holidays

Non-exempt employees required to work on a holiday (see PPP# 120-00) shall be paid their normal base rate of pay plus one and one-half (1 1/2) times their base rate of pay, or compensatory time at the rate of 1 ½ times the hours worked, for all hours worked on the holiday above the 40-hour work week.

3. Call in Pay

Non-exempt employees recalled to work on a regular work day or called to work on a regular day off will be paid, or will receive compensatory time in-lieu-of pay, for a minimum of four hours or for hours actually worked, whichever is greater. For purposes of pay or compensatory time, recalled employees will be considered to be on an overtime assignment provided the hours are in excess of 40 hours in the work week, including credit for approved leave. The City Manager may establish special call in procedures and compensation for certain classification of employees.

4. Union-Represented Employees

Union-represented salary-graded employees shall receive overtime compensation for all authorized overtime in accordance with the terms of the applicable collective bargaining agreement with the City.

5. Compensatory Time in Lieu of Overtime Pay

a. City’s discretion.

At the discretion of the applicable supervisor and in accordance with policies established by the applicable department director, non-exempt employees may receive any combination of compensatory time off and overtime payment so long as the principle of “time and one-half is maintained, and the compensation is consistent with any applicable collective bargaining agreement.

b. Use of Compensatory Time

(i). Non-exempt employees may be required to exhaust compensatory time off before vacation is taken, even if this will result in accrued vacation being forfeited.

(ii). Non-exempt employees must be allowed to take compensatory time off within a reasonable period after making a request if the use of the compensatory time does not unduly disrupt the City’s operations. A mere inconvenience is not sufficient to deny a request for compensatory time off.

c. Payment for Compensatory Time.

(i) At the end of the leave year, a non-exempt employee shall be paid for any compensatory leave hours accrued in excess of 80 hours.

(ii) Non-exempt employees will be paid for any unused compensatory time at the time of their termination of service.

RECORDING OVERTIME AND COMPENSATORY LEAVE

1. Overtime is recorded by the employee and verified by the appropriate supervisor on the Time Sheet along with the regular hours worked. Time Sheets are prepared and submitted as designated by the Department of Finance.

2. The appropriate supervisor approves daily overtime by signing the Time Sheets. Each instance of overtime must be recorded on the Time Sheet.

3. All records on the accrual and use of compensatory time will be recorded through the City’s payroll/timekeeping system.