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 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.
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 (SCK), paid time off (PTO) and other paid leave balances must not be included in this calculation.
302.2 STRAIGHT-TIME OVERTIME (OTS) AND COMPENSATORY TIME
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 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 may not receive a combination of compensatory time off and premium overtime pay for time worked in that work week. 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. The only occasions on which staff members regularly scheduled to work 40 hours per week may accumulate compensatory time are the Special Winter Break and University-recognized holidays.
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 in excess of his/her scheduled workweek, but not more than 40 hours, the staff member is eligible for straight-time overtime 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. Because not all departments permit the use of compensatory time, staff members should confirm with their supervisors before electing this option.
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. The granting of compensatory time is at the discretion of the supervisor and is subject to the business needs of the department. Compensatory time must be used within 3 months of the date it is earned. Compensatory time not used within 3 months of the date it is earned must be paid to the employee at his/her regular hourly rate; this payment must be processed through Pennworks as a Late Pay. 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 PennWorks within the same pay period in which the premium or straight-time 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.
Frequently Asked Questions
Click here to view the Frequently Asked Questions (FAQ) of this policy.
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.
Policy Number: 302
Effective Date: 04/25/2016
Supersedes Policy Number(s): 302 (04/01/1998, 11/01/1999, 06/27/2008, 12/02/2014)
Applicability: All non-exempt, non-unionized staff members
Cross-reference: Policy 114, Policy 115, Policy 116