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Policy Manual

Overtime Compensation and/or Compensatory Time

This policy applies to weekly-paid staff members on hourly compensation plans (i.e., in non-exempt positions). All such staff members are subject to the overtime pay provisions of the Fair Labor Standards Act (FLSA) and must be compensated for all hours worked, including all hours worked on and off of work premises. They may not donate their services to any entity under the direction of the Trustees of the University of Pennsylvania.  Supervisors must authorize, in advance, all time worked over a staff member’s regularly-scheduled number of hours.

302.1 PREMIUM OVERTIME (OTP)

According to the FLSA, a staff member on an hourly compensation plan who works more than 40 hours in a workweek must be paid an overtime rate of one and one-half times his/her regular rate of pay for all time worked over 40 hours in the workweek. The University's standard workweek for pay computation purposes is 12:00 a.m. Monday through 11:59 p.m. Sunday.

When calculating overtime at one and one-half times the regular rate of pay for time worked over 40 hours in a given workweek, Workday does not include holiday hours or time charged to sick leave, paid time off (PTO), and other paid leave balances in its calculations, as these are not considered hours worked.

302.2 STRAIGHT-TIME OVERTIME (OTS) AND COMPENSATORY TIME

A. Up to 40 hours

Some staff members on hourly compensation plans regularly work fewer than 40 hours per week.  If such a staff member works more than his/her regularly-scheduled number of hours, up to 40 hours in a workweek, the staff member must be compensated in either of the following ways:

  • Pay at his/her regular hourly rate for all time worked over his/her regularly-scheduled number of hours, up to 40 hours in the workweek; OR
  • Compensatory Time off equal to all time worked over his/her regularly-scheduled number of hours up to 40 hours in the workweek (provided that the actual time worked in that workweek does not exceed 40 hours, AND provided that all minimum wage requirements are met).

The substitution of compensatory time off in lieu of pay for the time worked up to 40 hours must be agreed upon in advance by the staff member, supervisor, and/or senior Business Administrator. Because not all departments permit the use of compensatory time, staff members should confirm with their supervisors before electing this option. 

In the absence of a timely election, staff members will be paid straight-time overtime for all time worked over their regularly-scheduled number of hours up to 40 hours.   

B. More Than 40 Hours

Staff members on hourly compensation plans who work more than 40 hours in a workweek may not receive a combination of compensatory time off and premium overtime pay for time worked in that workweek. 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 over 40 hours in the workweek. The only occasions on which staff members who are regularly scheduled to work 40 hours per week may accumulate compensatory time are the Special Winter Break and University-recognized holidays.

C. Staff in Exempt Positions

Monthly-paid staff members on salary compensation plans (i.e., in exempt positions) are not eligible to receive compensatory time or overtime pay.

302.3 ADMINISTRATION

A. Compensatory Time

Compensatory time must be used within three months of the date(s) on which it is earned. Compensatory time not used within three months of the date(s) on which it is earned must be paid to the staff member at his/her regular hourly rate. No more than 40 hours of earned compensatory time may be accumulated in any three-month period.

The supervisor must maintain accurate records that track the date(s) on which the staff member earned compensatory time and the three-month date by which that compensatory time either must be used or be paid.

Compensatory time off should be requested and approved in advance by the staff member’s immediate supervisor. Supervisors should determine and communicate to staff how much advance notice they require.  The granting of compensatory time off without advance notice is at the discretion of the staff member's immediate supervisor, and may or may not be granted based on the business and operational needs of the unit. 

Compensatory time off requests must be entered into Workday.  After the staff member enters the request into Workday, Workday automatically routes the request to the next approval level(s).

If a staff member transfers to another supervisory organization, the releasing department either pays the staff member for his/her compensatory time at his/her current rate of pay, or permits the use of compensatory time off before the effective date of the transfer.  If a staff member’s position is reclassified, the department must either pay the staff member for his/her compensatory time at his/her current rate of pay, or permit the use of compensatory time prior to the effective date of the reclassification.  Upon the voluntary or involuntary termination of employment, a staff member must be paid for his/her compensatory time

B. Premium or Straight-Time Overtime Pay

Staff members on hourly compensation plans must be paid for all premium overtime (OTP) or straight-time overtime (OTS) on the pay date corresponding to the workweek in which the time was worked.  

302.4 UNIVERSITY STAFF WHO ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS

University staff members covered by collective bargaining agreements should refer to the appropriate articles in their contracts.

302.5 STAFF WORKING IN OTHER JURISDICTIONS

The benefits and policies for University of Pennsylvania staff members who work in locations outside of the Commonwealth of Pennsylvania may be different from the benefits and policies set forth in this policy. Staff members working outside the Commonwealth of Pennsylvania should contact Human Resources for more information.


Policy Number: 302
Effective Date: 04/25/2016
Last Reviewed Date: 06/05/2019
Revised Date: 07/01/2019
Supersedes Policy Number(s):  302 (04/01/1998, 11/01/1999, 06/27/2008, 12/02/2014)
Applicability:  All Staff Members in Non-Exempt Positions
Cross-reference: Temporary Staff on Penn's Payroll - Policy 114, Limited Service Staff Members - Policy 115, Regular Part-Time Staff Members - Policy 116

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