REG - 80.02.3 Compensatory Time (Overtime) Leave Policy

1. Purpose

1.1 The purpose of this policy is to provide uniform guidelines for the accrual, use, and forfeiture or payment, as applicable, of compensatory time.

2. Scope

2.1. Full-time and part-time (half-time or more) SHRA permanent, probationary, and time-limited employees whose positions are subject to the overtime provisions of the Fair Labor Standards Act (FLSA) are eligible for compensatory time.

2.2. Temporary, intermittent, and part-time (less than half-time) SHRA employees are not eligible for compensatory time, nor are SHRA employees whose positions are not subject to the overtime provisions of the FLSA.

3. Policy

3.1 Compensatory Time for SHRA FLSA Subject (Non-Exempt) Employees

3.1.1 Compensatory time may be accrued by an SHRA employee subject to the overtime provisions of the FLSA.

3.1.2 Accrual/Expensing Compensatory Time for Wage-Hour Subject Employees

3.1.2.1 Recording time: All employees who are designated as wage-hour subject under the FLSA must record all hours worked and must receive extra compensation for hours worked in excess of their regular schedule. It is State and university policy to give time off in lieu of monetary compensation except as required below.

3.1.2.2 Hours worked in excess of the employee's regular schedule fall into two categories: extra hours at straight time (gap hours), extra hours at time and a half (overtime hours), On-Call Compensatory time and emergency compensatory time.

3.1.3 Gap Hours

3.1.3.1 Gap hours are extra hours worked outside of the regular work schedule that do not result in the employee physically working more than 40 hours in the workweek. Extra hours worked during the university workweek that do not reach the 40-hour threshold for overtime must be compensated at straight time (gap hours).

3.1.3.2 Gap hours compensatory time may be accrued for a maximum of 12 months or 240 hours. If at any point the gap hours compensatory time balance exceeds 240 hours, the excess must be paid in the next payroll cycle. Also, any gap hour’s compensatory time that is not taken within 12 months of the month in which it is earned must be paid in the next payroll cycle.

3.1.4 Overtime Hours

3.1.4.1 Overtime hours are hours worked by FLSA-subject employees in excess of 40 in the university-designated workweek and must be compensated at time and one half.

3.1.4.2 Overtime compensatory time may be accrued for a maximum of 12 months or 240 hours. If at any point the overtime compensatory time exceeds 240 hours, the excess must be paid in the next available payroll. Also, any overtime compensatory time that is not taken within 12 months of the month in which it is earned must be paid in the next payroll cycle.

3.1.4.3 In order to calculate the overtime rate correctly, overtime shall be paid whenever employees earn shift premium and/or on-call pay in the same pay period as overtime. 

3.1.4.4 If compensatory time is earned, the department must choose one of the following options as an operating standard:

3.1.4.4.1 Option 1: Preferably Compensatory time will be taken in the month in which it is earned or the following month. This option promotes careful monitoring of comp time by supervisors. If the department has chosen this option then there will be no need to monitor the compensatory time for a period up to 12 months after the compensatory time has been granted. 

3.1.4.4.2 Option 2: Compensatory time may be accrued for a maximum of 12 months or 240 hours. If at any point compensatory time exceeds 240 hours, the excess must be paid in the next payroll cycle. Also, any comp time that is not taken within 12 months of the month in which it is earned must be paid. If at any time an employee has built up an exceptional amount of comp time, a department that has elected this option may make an exception to pay all or part of the comp time rather than award time off. Departments may manage comp time by requiring the employee to take the time off.

3.1.4.4.3 All unused comp time for wage-hour subject employees must be paid when the employee separates from the university. Separation date cannot be adjusted to pay comp time. If an employee transfers to another department within the University, the compensatory time must be paid by the department where it was earned unless the receiving department agrees in writing to accept the balance.

3.1.4.5 Compensatory time is not transferable to another state agency.

3.1.5 Use of Compensatory Time

3.1.5.1 Overtime compensatory time and gap hours compensatory time shall be taken before any vacation or bonus leave. Hours worked more than the employee's established work schedule must be used to offset sick leave used in the same overtime period. Leaving will be restored to the employee's balance for later use (See Sick Leave Policy). All use of compensatory time requires supervisory approval. Overtime compensatory time can be denied to an employee if the compensatory time off will unduly disrupt university operations. Supervisors may also, based on business needs, schedule the use of comp-time for employees.

3.1.6 Record Keeping

3.1.6.1 Compensatory is requested, recorded, and records are maintained according to University guidelines.

3.1.6.2 Hours worked by an employee without the employer's permission or contrary to instruction may or may not be considered as hours worked. Unrecorded hours worked during a workweek by an employee at the job site or at home must be counted as hours worked if the employer knows or has reason to know of such practice. The employer must enforce the no-work rule and may not unjustly benefit from work performed without knowledge of it. Unauthorized overtime may be addressed with the employee as a performance or conduct issue.

3.2 Compensatory Time for FLSA Not Subject (Exempt) Employees – Discretionary

3.2.1 FLSA Not Subject employees, including EHRA and SHRA Exempt employees, are not entitled to compensatory time; however, the University may, at its discretion, grant compensatory time in appropriate circumstances. Any compensatory time awarded to FLSA Not Subject employees must be provided at a straight-time equivalent rate and must be used within twelve (12) months of the date it is earned. Compensatory time may not be accumulated beyond the twelve-month period and is not transferable to another State agency.

3.2.2 FLSA Non Subject employees, including EHRA and SHRA Exempt employees, are not eligible for payment of unused compensatory time upon separation from employment. Any unused compensatory time remaining at the time of separation is forfeited and will not be paid in cash.

4. Special Provisions for Law Enforcement

4.1 The term law enforcement activities refers to any employee (1) who is a uniformed or plainclothes member of a body of officers, and subordinates who are empowered by statute or local ordinance to enforce laws designed to maintain public peace and order and to protect both life and property from accidental or willful injury, and to prevent and detect crimes, (2) who has the power of arrest, and (3) who is presently undergoing or has undergone or will undergo on-the-job training and/or a course of instruction. Not included in the term "employee in law enforcement activities" are the so-called "civilian" employees of law enforcement agencies or correctional institutions that engage in such support activities as those performed by dispatchers.

4.2 Because of the varied nature of law enforcement activities, Wage and Hour Law permits a 28-day work period. NCCU has elected the 28-day work period. The following provisions apply:

4.2.1 The "work period" will consist of 28 consecutive days. In the work period of 28 consecutive days the employee shall receive four tours of duty, which at the aggregate can exceed 171 hours, compensation at a rate of one and one-half times the regular hourly rate at which employed. The regular hourly rate is the rate computed on a 40-hour basis plus shift premium pay, if any.)

4.2.2 Under these provisions, nonexempt persons in law enforcement positions who work more than 171 hours in a 28 consecutive-day-work period may be given compensatory time off in lieu of cash payment for these overtime hours worked.

4.2.3 Overtime compensatory time off earned must be used no later than 180 days from the date the compensatory time off was earned.

4.2.4 Overtime compensatory time off earned but not used within 180 days from its being earned must be paid for in cash in the first pay period following the expiration of the 180 days.

4.2.5 Employees cannot accumulate more than 480 hours of compensatory time. Any compensatory time earned in excess of 480 hours must be paid in cash as earned.

4.2.5.1 See Section 3.1.3 (Gap Hours) of this policy for provisions on how to compensate for compensatory time hours.