7.20 – Staff Overtime Pay or Comp Time

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Scope: NMSU System

Source: ARP Chapter 7 | HR - Compensation and Changes in Status

Responsible Executive: Vice President Administration and Finance

Responsible Administrator:

Last Updated: 10/09/2018

Related

Cross-Reference:

Revision History:

10/09/2018 Amendment approved by Chancellor
2017 Recompilation, formerly Rule 8.20 A - C and E - F

10/22/2007 Amendment ratified by Board of Regents

PART 1: EMPLOYEES EXEMPT FROM OVERTIME


Any individual employed in a bona fide executive, administrative, or exempt capacity, as defined by the Fair Labor Standards Act, may be exempted from compensatory time or payment of overtime.  Employees so exempted shall be termed exempt.  All other categories will be termed nonexempt.  Exempt/nonexempt status will be determined by a review of the specific description of duties for the position in question.  Positions having like classifications may receive different exempt/nonexempt classifications based on the specific duties and responsibilities required.  The Office of Human Resource Services may be contacted for information regarding exempt/nonexempt status on any position.

 

PART 2: OVERTIME ADMINISTRATION


A director/department head may prescribe reasonable periods of overtime work to meet the needs of an operation.  A nonexempt employee may only work more than 40 hours a week after having obtained prior approval or instructions from the appropriate supervisor.  Complete records of overtime for employees will be maintained in each department or office.

 

PART 3: OVERTIME PAYMENT


Nonexempt employees as defined by the Fair Labor Standards Act are eligible to be compensated or given compensatory time for overtime.  Upon election by the employee, overtime work may be compensated in the form of overtime pay or compensatory time off.  Normally, employees who are eligible for payment of overtime will not work in excess of a 40-hour week.  To prevent a backlog, workloads should be adjusted by determining needs sufficiently in advance so that temporary help may be hired.  The university has no contractual obligation to pay overtime or approve compensatory time.  If it becomes necessary for nonexempt employees to work more than 40 hours in a week, the following will apply:

  1. Hours Worked Over Forty Per Work Week: All regular, non-exempt, employees shall be paid for all hours worked in excess of forty (40) hours during a work week at the employee’s regular rate of pay and at an additional 0.5 times for the overtime hours worked or be paid for all hours worked in excess of forty (40) hours during a work week at the employee’s rate of pay and earn comp time at an additional 0.5 times the overtime hours worked.
  2. Excess Hours Worked Less than Forty Per Work Week: When regular, part-time, employees are required to work more than their normal scheduled hours, but less than 40 hours per week, they will be paid for additional hours (at straight time rates) up to a total of 40 hours in a work week. All time worked in excess of 40 hours is subject to the provisions in A above.
    1. When temporary employees are required to work more than their normal scheduled hours, but less than 40 hours per week, they will be paid for additional hours (at straight time rates) up to a total of 40 hours in a work week. All time worked in excess of 40 hours shall be paid at the employee’s rate of pay and at an additional 0.5 times the overtime hours worked.
  3. Calculation of Overtime in Weeks with Paid Leave: For the purpose of calculating overtime pay, time off from work resulting from a designated holiday or alternative holiday (ARP 8.56) or approved annual leave, sick leave, administrative leave, use of accrued compensatory time, or compassionate leave will be considered as hours worked. Except in these instances of authorized absences, the employee must have actually worked over 40 hours to qualify for overtime pay or comp time.

 

PART 4: OVERTIME REPORTING


Nonexempt employees eligible for payment of overtime who are required to work in excess of 40 hours per week will report overtime hours worked on the university Compensation Overtime Report at the end of the pay period.  The method for computing overtime is stated on the form.

 

PART 5: COMPENSATORY TIME (COMP TIME)


The purpose of compensatory time is to provide an alternative to cash payment of overtime. A nonexempt employee may only work more than 40 hours a week after having obtained prior approval or instructions from the appropriate supervisor.

  1. Upon election by the employee, overtime work may be compensated in the form of compensatory time off. When such form of compensation is elected, the employee shall be paid for all hours worked in excess of forty (40) hours during the work week (hereinafter “overtime hours”) at the employee’s regular hourly rate of pay and earn comp time at an additional .5 times the overtime hours worked. The university shall designate two (2) opportunities each year for employees’ to elect to receive comp time for overtime hours worked, to be effective on January 1 and July 1.
  2. The date to be taken as comp time off shall be scheduled by agreement between the supervisor and the employee. Supervisory approval for the use of comp time shall not be unreasonably withheld. A supervisor may direct that an employee use accrued comp time.
  3. A maximum of one hundred and twenty (120) hours of comp time may be accrued in a fiscal year. Comp time earned for overtime and reported by the payroll deadline shall be accrued at the next regularly scheduled pay day. An employee may request payment of accrued comp time at any time, which shall then be paid at the next regularly scheduled pay day. All comp time must be used or paid by the end of each fiscal year or prior to transfer or termination.