Compensatory time and overtime provisions apply to non-exempt status employees only. Learn more about non-exempt status.
What is Compensatory Time?
Compensatory time is time off granted to non-exempt employees for hours worked between 37.5 and 40 hours during a given workweek. Non-exempt employees can accrue a maximum of 2.5 hours of compensatory time per week. A non-exempt employee who works between 37.5 and 40 hours during the week may either receive a straight hourly rate, or be given compensatory time off for those hours, at the discretion of the department administrator.
Compensatory time off must be taken by the end of the following pay period in which it is earned or will be paid out at the regular hourly rate. Compensatory time does not count toward calculating overtime.
What is Overtime?
Non-exempt employees must be paid overtime pay for all hours worked beyond 40 during a given work week. Overtime must be calculated and paid at a rate of one-and-one-half (1.5) times the regular hourly rate.
Overtime must be paid through Payroll in the pay period in which it is earned or in the next pay period. Time off MAY NOT be granted in place of payment for overtime hours (hours beyond 40) worked.