Northern Arizona University

Policy 2.03


What is compensatory time? Am I eligible to use it? These are common questions that many NAU employees ask. Compensatory time off is a component of the federal Fair Labor Standards Act and is available to public employers as a means of compensation for overtime.

Only non-exempt employees can accrue compensatory time.
NAU policy allows compensatory time for benefit eligible, non-exempt employees. Non-exempt employees who do not receive benefits (such as temporary employees) must be paid for overtime.

Exempt employees cannot accrue compensatory time.
Exempt employees (who are "exempt" by law from receiving overtime) are not eligible to accrue compensatory time. Managers may, however, by NAU policy, offer flexible working hours when exempt employees work an excessive number of hours.


Time sheets are required for all non-exempt employees.
Every non-exempt employee is required to fill out a biweekly time sheet. Non-exempt employees who are benefit eligible are able to track compensatory time used or earned on their time sheets. Time sheets should be completed and signed by the employee and their supervisor every two weeks and considered to be the official record of compensatory time balances.


Scheduling and Using Compensatory Time 
An eligible employee must request to use compensatory time off in advance by completing a Record of Absence (ROA) form.

An eligible employee is encouraged to use compensatory time within the same month it is earned whenever possible, but continuity of operations must be maintained.

An employee shall not carry a balance of more that 120 hours of compensatory time.


Compensatory Time Upon Termination
Upon termination from university service or change in eligibility status, unused compensatory time shall be paid to non-exempt employees in accordance with the Fair Labor Standards Act.

For additional information on compensatory time, go to Overtime/Compensatory Time.