Overtime Compensation Policy
Provide guidance concerning overtime compensation for non-exempt staff.
University policies related to overtime compensation are established pursuant to the Fair Labor Standards Act (FLSA). The University reserves the option to either allow compensatory time or to pay overtime for which an employee is eligible under FLSA. The University will generally compensate a non-exempt employee for any time worked over forty 40 hours with compensatory time. Student employees in approved overtime status will be compensated monetarily and not with compensatory leave time accrual. Campus departments wishing to pay overtime hours to employees, rather than approving compensatory time, must request that authority from and be authorized in advance by the appropriate budgetary channel and by Human Resource Management (HRM).
A non-exempt employee will not work overtime without advance supervisory authorization. Non-exempt student employees are not allowed to work over a 40 hour work week. Advance approval from Human Resource Management is required in the event an exceptional circumstance, activity and/or event would necessitate overtime for a non-exempt student employee. Non-exempt employee eligible for overtime will be compensated at the rate of 1.5 hours for each hour worked over 40 hours in a work week. If a non-exempt employee works over 40 hours per week (including holiday credit for eligible employees) without advance supervisory authorization, the overtime must be compensated; however, the employee may be subject to disciplinary action.
Calculation of Overtime Compensation Rate:
Non-exempt staff eligible and approved for overtime will be compensated at the rate of 1.5 hours for each hour worked over 40 hours in the University’s defined work week. Compensation will be calculated on the basis of the employee's current rate of pay.
University policy allows holiday credit (paid time for a holiday when it is not worked) to count toward the calculation of overtime eligibility for all non-exempt staff. No other forms of paid leave will count toward the calculation of overtime eligibility, e.g. neither sick nor vacation leave.
Use of Compensatory Time:
Compensatory time for accrued overtime may not exceed 90 hours. Any compensatory time accrued above the 90 hour maximum will be paid out as overtime to the employee. Higher balances of compensatory time accruals must be requested from and approved in advance by HR.
Use of accrued compensatory time is granted for dates requested by the employees provided that the department is not adversely affected. Supervisors have the authority to determine if the timing or the length of the leave request has such an adverse effect on departmental operations.
Supervisors may require that the employee use compensatory time at specified times in order to avoid payment of overtime hours. Prior to requiring the use of compensatory time, the supervisor should advise the employee to take steps to reduce compensatory time balance. Supervisors should give as much advance notice as possible to employees when mandating the use of compensatory time.
Payment of Compensatory Time Upon Departure or Transfer:
Employees leaving University service or transferring to another state agency with unused compensatory time (including holiday compensatory time) will be paid this balance in addition to regular pay. If a non-exempt employee transfers to another non-exempt position with a different campus department, the compensatory time balance will be paid out by the department from which the employee is departing. If a non-exempt employee moves to an exempt position, any remaining compensatory time balance must be paid by the department where the non-exempt appointment was held.
This policy may be superseded by specific arrangements established in existing Memorandum of Agreement when applicable.
Department of Human Resource Management
103 Carruth-O’Leary Hall
1246 W. Campus Road
Lawrence, KS 66045
Non-exempt (hourly) position: A position that is not exempt from the overtime provisions of the FLSA. Persons appointed to non-exempt position are paid on an hourly basis for time worked. Such persons are eligible for overtime compensation at the rate of one and one-half hours for every hour worked over 40 hours in the work week.
Work week: The University work week for purposes of determining compensatory time is 12:00 a.m. Sunday to 11:59 p.m. Saturday.
07/11/2016: Updated to remove gendered pronouns.
06/21/2016: Updated DLR
- Added option of Compensatory or Overtime Pay in statement
- Added section headers within policy statement
- Added Student Overtime statement
- Added 1.5 hours per hour rate of pay statement
- Deleted last paragraph of calculation statement
- Added 90 hour maximum
- Added transfer statement
- Added Exclusions/Special Circumstances
- Added Definitions
- Changed Human Resources/HR to Human Resource Management/HRM
01/22/2015: Policy formatting cleanup (e.g., bolding, spacing).
07/24/2014: Revised the policy to correct an inaccuracy regarding overtime payment for non-exempt employees hired prior to or after February 1, 1991.