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- Policy Manual
- Compensation Policies
- Overtime Compensation and/or Compensatory Time
- Frequently Asked Questions: Overtime Compensation and/or Compensatory Time Policy
Frequently Asked Questions: Overtime Compensation and/or Compensatory Time Policy
This list of Frequently Asked Questions refers to Policy 302 in the Human Resources Policy Manual.
FAQ: Overtime Pay and/or Compensatory Time
Sometimes I can't complete my work during my regularly-scheduled workweek, and my department can't afford to pay me overtime. May I just work the extra hours needed to complete the work and agree not to be paid?
No. Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) may not legally waive the right to overtime pay; any agreement to that effect is not valid. Further, such staff members may not donate their services to any entity under the direction of the Trustees of the University of Pennsylvania. Staff members and their supervisors should discuss work schedules and workload issues. Staff members in positions classified as non-exempt are not permitted to work overtime without prior supervisory approval; however, it is important to note that all time worked over 40 hours in a workweek must be paid for at one and one-half times the staff member’s regular rate of pay, even if the staff member has worked without this authorization.
If I cannot complete my work during the day, may I complete my work at home?
Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) are not permitted to work overtime, either at work or off-premises without prior supervisory approval. If the time worked is not approved by his/her supervisor, the staff member will still be paid; however, he/she may be subject to disciplinary action. Under the Fair Labor Standards Act (FLSA), any time spent on work, whether at work or off-premises, is considered time worked and the staff member must be compensated for it.
If I take paid time off (PTO) or sick leave during the workweek, will that time count toward the calculation of overtime?
No. 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 time charged to sick leave, paid time off (PTO), and other paid leave in its calculations.
As a supervisor, am I required to allow my staff members to take a rest break after working a specific number of hours?
No. The FLSA does not mandate that staff members who are at least 18 years of age receive rest breaks during the workday. If rest breaks are provided, however, staff members must be paid for those breaks lasting 20 minutes or fewer, and should include them as time worked when entering time into Workday. Paid breaks are included in overtime calculations (See Meal and Rest Breaks - 309).
I have a staff member in a non-exempt position who eats lunch at his desk and answers his phone. Must he be paid for his lunch hour?
Yes. The meal break is not considered time worked and will be unpaid, provided that it is at least 30 consecutive minutes in length and that the staff members does not perform any work during the break. It is not required that staff members leave work premises during the meal break, only that they are both completely freed from all work responsibilities, and not permitted to work during that period. If a staff member performs any work during the 30-minute meal break, then he/she will be paid for the entire 30 minutes (See Meal and Rest Breaks - 309).
I often hear the terms “exempt” and “non-exempt” when people are referring to jobs. What do those terms mean?
Staff members in some positions are exempt from the overtime pay provisions of the FLSA because of the type of work they perform. The decision to classify a position as exempt is based on the duties performed. Staff members in exempt positions do not receive overtime pay for time worked over 40 hours in a workweek. Staff members in non-exempt positions, however, are “not exempt” from the overtime pay provisions of the law; they must be paid at one and one-half times their regular hourly rates for all time worked over 40 hours in a workweek.
Do staff members in non-exempt positions have to be paid for time spent sending and responding to work-related emails while off work premises?
Under the FLSA, any time spent on work is considered time worked, and must be compensated. Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) are not permitted to work off premises without prior supervisory approval.
Do staff members in non-exempt positions who work more than eight hours in a day to have to receive premium overtime pay?
Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) do not receive premium overtime pay (i.e., one and one-half times their regular rates of pay) for hours worked over eight in a day unless required by other states’ laws affecting staff members who work in those states. Staff members in non-exempt positions receive premium overtime pay only when their actual time worked exceeds 40 hours in a workweek.
Do staff members in non-exempt positions have to be paid for time spent at seminars, lectures, meetings, training programs, and similar activities?
Attendance at seminars, lectures, meetings, training programs, and similar activities is considered time worked unless all four of the following criteria are met:
- Attendance is outside of the staff member’s regular working hours; and
- Attendance is voluntary and not required by the employer, or perceived by the staff member as being a condition of his/her employment; and
- The program is not directly related to the staff member’s job; and
- The staff member does not perform any work during attendance.
Do staff members in non-exempt positions have to be paid for time spent on travel to another city on business if such travel all occurs in one day and does not involve an overnight stay?
Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) who travel to another city for the day must be paid for the time spent traveling; it counts as time worked, and should be entered into Workday (Time Tracking). The staff member’s normal commuting time to work may be deducted from the travel time.
Do staff members in non-exempt positions have to be paid for time spent on overnight travel to another city?
Time spent on overnight travel that corresponds to such staff members’ regular working hours must be counted as time worked and entered into Workday (Time Tracking). Travel hours on Saturdays, Sundays, and holidays that correspond to a staff member’s regular working hours on other days of the week are counted as time worked provided that the travel involves a required overnight stay. Staff members on hourly compensation plans (i.e., weekly-paid staff members in non-exempt positions) also must be paid for any work they perform while traveling. Bona fide meal periods may be excluded.
Please consult with Human Resources prior to requiring/approving overnight travel for staff members in non-exempt positions.
Please consult with Human Resources prior to requiring/approving overnight travel for staff members in non-exempt positions.
A staff member in a non-exempt position has a regular schedule of 35 hours per week; he also has a job in another area. He works 43 hours in one area and 7 in the other. Which department must pay overtime at one and one-half times his regular hourly rate?
Any department in which a staff member in a non-exempt position works over 40 hours is responsible for paying overtime only for time worked in that department over 40 hours in workweek. Your department will pay the staff member 3 hours of overtime, and the other department will pay 7 hours of overtime. Overtime is based on a blended weighted average of the hourly rates for the primary and additional positions; Workday automatically calculates the rate.