POLICY NO: 302
EFFECTIVE DATE: 06/27/2008
OVERTIME COMPENSATION AND/OR COMPENSATORY TIME
(Weekly and Hourly-Paid Staff Members Only)
This policy applies to all non-exempt weekly and hourly-paid staff
members whose employment status is regular full-time, regular part-time, limited
service, or temporary. All non-exempt staff members are subject to the overtime pay provisions of
the Fair Labor Standards Act and must be compensated for all hours worked, including all hours worked on and off work premises. They
cannot donate their services to any entity under the direction of the Trustees of
the University of Pennsylvania and are not permitted to work in excess of their regularly
scheduled work hours without prior supervisory approval.
302.1 PREMIUM OVERTIME (OTP)
According to the Fair Labor Standards Act, a non-exempt weekly or
hourly-paid staff member, who works more than 40 hours in a workweek, must be paid an
overtime rate of one and one-half times his/her regular hourly rate of pay for all time
actually worked in excess of 40 hours in the workweek. The University's standard workweek
for pay computation purposes is 12:01 a.m. Monday through 12:00 midnight Sunday.
A staff member may not receive compensatory time off for any of the
time worked in a workweek in which he/she works in excess of 40 hours. The staff member’s
regular hourly rate must be paid for all time actually worked in a workweek in
excess of his/her regular schedule (35 or 37.5 hours) up to 40 hours. The overtime rate of one and
one-half times his/her regular hourly rate must be paid for all time worked in excess of
40 hours in a workweek. Non-exempt staff members cannot receive a combination of
compensatory time and premium overtime pay for actual time worked in the same pay
period.
When calculating overtime at one and one-half times the regular rate of
pay for time worked in excess of 40 hours in a given workweek, only actual time worked is
used. Time charged to sick, paid time off and other paid leave balances must not be included
in this calculation.
302.2 STRAIGHT-TIME OVERTIME (OTS)
A non-exempt weekly or hourly-paid staff member who works in excess of
his/her regular schedule (e.g., if full-time: 35 or 37.5 hours; if part-time: 17.5 to 28
hours) up to 40 hours in a workweek must be compensated in either of the following ways:
- Pay at his/her regular hourly rate for time worked in excess of his/her regular schedule up to 40 hours in the workweek; or
- Time off (compensatory time) equal to the number of hours worked over his/her regular schedule (e.g., if full-time: 35 or 37.5 hours; if part-time: 17.5 to 28 hours) up to 40 hours in the workweek (provided that the actual hours worked do not exceed 40 hours in that workweek and provided that all minimum wage requirements are met).
Non-exempt weekly and hourly-paid staff members who work in excess of
40 hours in a workweek are not eligible to receive compensatory time. They must receive
their regular hourly rate for time worked up to 40 hours in the workweek and then the
premium overtime rate for all time worked in excess of 40 hours in the workweek.
302.3 TIMESHEETS FOR WEEKLY AND HOURLY-PAID STAFF MEMBERS
All weekly and hourly-paid staff members should complete and sign a
weekly timesheet reflecting actual time worked, both on and off work premises. The staff member’s supervisor must sign
the timesheet and is responsible for verifying the actual time worked (See Appendix A for a
sample timesheet).
If a staff member works time in excess of his/her scheduled workweek
but not more than 40 hours, the staff member is eligible for straight-time overtime and/or
compensatory time off. The staff member is to elect on the timesheet if he/she
would prefer to
receive pay or compensatory time for the time worked in excess of his/her schedule up to
40 hours. The substitution of compensatory time off in lieu of monetary compensation for
the time worked up to 40 hours must be agreed upon in advance by the staff member and
supervisor and/or responsibility center head. In the absence of a timely election, staff
members will be paid straight-time overtime for time worked in excess of their regular schedule
up to 40 hours.
302.4 ADMINISTRATION
The supervisor must maintain the appropriate records which track the
actual days and time worked, straight-time and premium overtime worked, compensatory time
earned and compensatory time used. Records should include weekly timesheets signed by
the staff member and the supervisor and Time Report Forms. All time and pay-related records
must be kept for at least three years.
A. Compensatory Time
A staff member must schedule compensatory time off in advance with
his/her supervisor. Compensatory time must be taken or paid for within three months of the
date it is earned. No more than 40 hours of earned compensatory time may be accumulated in
any three-month period.
If a staff member transfers or terminates employment, compensatory time
is to be paid at the staff member’s current rate of pay by the releasing department on or
before the next regular payday following the date of transfer or termination.
B. Premium or Straight-Time Overtime Compensation
All payments for premium overtime (OTP) or straight-time overtime (OTS)
must be authorized by the supervisor and/or head of the responsibility center and
entered into the Personnel/Payroll system within the same pay period in which the
straight-time or premium overtime hours are worked (See Appendix B for a sample Overtime
Authorization Form).
302.5 UNIONIZED STAFF MEMBERS
University employees covered by Collective bargaining agreements should
refer to the appropriate article in their contracts.
Applicability: All non-exempt, non-unionized staff members
Cross-reference: Policy 114, Policy 115, Policy 116
Supersedes Policy Number(s): 302 (04/01/1998, 11/01/1999)
Frequently Asked Question
Click here to view the Frequently Asked Questions
(FAQ) of this policy.
Appendix A
University of Pennsylvania Timesheet
Weekly & Hourly Paid Staff
Click here to download Appendix A in Microsoft Word 97
Format.
Appendix B
University of Pennsylvania
Overtime Authorization Form
Click here to download Appendix B in Microsoft Word 97
Format.
The benefits and policies for University of Pennsylvania employees who work in
locations outside of the Commonwealth of Pennsylvania may be different from the
benefits and policies set forth in this website. Employees working outside the
Commonwealth of Pennsylvania should contact their Human Resources representatives
for more information.