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Overtime
In order to support the objectives of the university, an employee may be expected to work extra hours beyond the normal workweek or the employee's normal schedule, if required to do so by the employee's department head. A department head also has the authority to require employees to report to work in emergency callback situations and to be available for an on-call basis for normal university operations.
The responsible administrator shall approve overtime work in advance for non-exempt employees. The immediate supervisor is responsible for scheduling approved overtime. Non-exempt employees shall not work overtime unless specifically authorized to do so by their supervisor. Overtime work shall be allocated as evenly as possible among those employees qualified to perform the work.
Understanding Overtime
Non-Exempt employees must be compensated for every hour worked. Every hour physically worked over 40 hours, in a work week, must be compensated at one and one half times their normal rate of pay, or accrued as compensatory time off (for benefit eligible employees) at time and one-half.
Overtime shall be calculated at straight time if actual hours physically worked in a workweek are less than 40, but combined work hours and paid leave hours exceed 40. Vacation, sick, holiday, jury duty, voting, administrative leave or bereavement leave are not hours physically worked and cannot be used to determine hours worked in excess of 40 hours per week.
- NOTE: Example for Full-Time Employee: Compensatory time shall be accrued or overtime paid at straight time when the full-time employee's paid time exceeds 40 hours in a work week but hours worked do not. For example, a Classified Staff employee is paid 8 hours for a holiday (or sick leave, etc.) and works 4 hours on a Saturday for a total of 44 hours paid time, only 36 hours of which are hours actually worked: 4 regular 8-hour shifts, one 8-hour shift of holiday pay, plus an extra 4 hour shift. The 4 hours in this example are straight time compensatory time.
- NOTE: Example for Part-Time Employee: Compensatory time shall be accrued or overtime paid at straight time when the part-time employee's paid time exceeds the established FTE, and hours worked are less than 40 hours in a work week. For example, a part-time Classified Staff employee in a .50 FTE normally works 20 hours in a work week. In a peak business time, the employee is required to work 30 hours. The employee is paid for 20 regular hours and may be given either 10 hours of straight compensatory time or 10 hours of additional cash straight time.
* When a non-exempt employee works multiple non-exempt positions, the number of hours worked in each position are cumulative in determining eligibility for overtime.
Exempt employees are not compensated for hours worked in excess of 40 hours per week. Managers may, however, by NAU policy offer flexible working hours when exempt employees work an excessive number of hours.
Overtime Compensation
Full-Time, Non-Exempt Employees
Full-time, non-exempt employees shall be compensated for overtime work in one of two ways.
- Time and one-half payment of the employee's regular rate of pay for each hour worked over 40 in a work week, or,
- One and one-half hours of compensatory time off for each hour worked over 40 in a work week (non-exempt, non-benefit eligible employees are not eligible for compensatory time and must be compensated in a cash payment of one and one-half times their regular hourly rate).
Part-Time, Non-exempt Employees
Part-time, non-exempt employees shall be compensated for hours worked in excess of their established FTE, and up to 40 hours in a work week, in one of two ways.
- Straight time payment of the employee's regular rate of pay for each hour worked up to 40 in a work week, or
- Straight time compensatory time off for each hour worked up to 40 in a work week (non-exempt, non-benefit eligible employees are not eligible for compensatory time and must be compensated in a cash payment).
Eligible part-time Classified Staff employees shall be compensated for hours worked in excess of 40 in a work week in one of two ways.
- Time and one-half payment of the employee's regular rate of pay for each hour worked over 40 in a work week, or
- One and one-half hours of compensatory time off for each hour worked over 40 in a work week (non-exempt, non-benefit eligible employees are not eligible for compensatory time and must be compensated in a cash payment of one and one-half times their regular hourly rate).
Generally, compensatory time off will be the means of compensation used for overtime hours worked.
Compensatory Time
Compensatory time off is a component of the federal Fair Labor Standards Act and is available to public employers as a means of compensating employees for overtime. Only non-exempt, benefit-eligible employees can earn comp time.
Non-exempt, non-benefit-eligible employees are not eligible to receive compensatory time for hours worked in excess of forty hours each work week, but must be compensated in a cash payment of one and one-half times their regular hourly rate.
Maximum Hours of Compensatory Time
Unless authorized by the Human Resources Department, employees should not exceed a maximum of 120 hours of accumulated compensatory time. After a Classified Staff employee has accrued 120 hours of compensatory time, all subsequent overtime hours worked should be compensated for in cash. The Human Resources Department shall provide a warning notice when a compensatory balance exceeds 90 hours.
Accurate record keeping of overtime hours worked and compensatory time credited on the Bi-Weekly Time Sheet is mandatory. Departmental administrators shall be responsible for assuring that compensatory time balances do not become excessive.
Using Compensatory Time
Accrued compensatory time should be used within a reasonable time frame; within the same month it is accrued, whenever possible. When using compensatory time, employees must fill out a Record of Absence form and obtain prior approval from their supervisor. This should also be recorded on the employee time sheet.
Compensatory Time at Termination
Any compensatory time balance should be paid at the employee's most recent non-exempt rate of pay to the employee upon termination, retirement, or change of status from non-exempt to exempt.
Questions pertaining to overtime and compensatory time should be forwarded to the Compensation and Workforce Data team. |
