Compensatory Leave Policy and Procedure

1. Compensatory LeavePolicy and Procedure University of North Texas Human Resources Department Melinda Lilly, Compensation, ext. 4245 Linda Gray, Records, ext. 4249

2. AGENDA • Federal Fair Labor Standards Act • State and University Overtime and Compensatory Leave Requirements • Work week/Hours of Work/Examples of Comp Time Earned • Required Timekeeping Forms • EIS Time and Labor • Payment/Calculation of Overtime • Comp Time at Status changes • Multiple Jobs/Dual State Employment • Separate Jobs and Non-exempt Staff • Strategies for Limiting Accumulation of Comp Time • Administrative Items • Answer Your Questions

3. FLSA - Federal Fair Labor Standards Act • Basic requirement of the Act related to overtime: • 1.5 pay for non-exempt employees working over 40 hours per week • Also has provisions related to minimum wage requirements and child labor laws

4. FLSA • Public / Government Employees • Governments have OPTION to grant Compensatory Time instead of making payment in cash • There is a cap on # of accruals without payment • 160 hours worked (240 hours comp time) for most employees • 320 hours worked (480 hours comp time) for public safety/emergency response employees (e.g. police, fire)

5. FLSA Classifications • Exempt/Non-exempt status of job titles can be found in the UNT or UNTS Pay Plan • Non-exempt employees are covered by the FLSA • Exempt employees are not covered by the FLSA: • Executive • Administrative • Professional • Outside Sales • Minimum Salary test: Exempt employees must make at least $23,660 in order to remain classified as exempt

6. Texas Government Code • Requires comp time accrual for non-exempts and permits comp time accrual for exempts • Limits cash payouts to “unusual circumstances,” using comp time as paid leave is preferred instead of making cash payment • Requires that any cash payouts be made at rate no more/no less than rate required by the FLSA • NO employee shall accrue state comp time (1.0 comp time) for work conducted at home or any other location other than employee’s regular place of employment or assigned duty point

7. State Provisions for Non-Exempt Employees • Can earn both federal (1.5) and state (1.0) comp time • 1.0 comp time must be taken within 12 months of earning or it lapses, or, with administrative approval, can be paid in cash at 1.0 rate

8. State Provision for Part-time Non-Exempt Employees • Part-time non-exempt employees do not earn compensatory time unless their hours worked and paid leave/paid holidays exceed 40 in a work week • Hours exceeding their usual schedule up to 40 will paid as “Hours over Standard” • Example: A 50% non-exempt employee works 42 hours in one week. 20 hours will be paid as “Hours over Standard” and 2 hours will accrue as 3 hours of 1.5 comp time.

9. TRS/Exempt Employees • Exempt employees whose positions are eligible for TRS are eligible for 1.0 comp time when hours worked and paid leave exceed 40 in the work week • No guarantee that hours earned can be used by employee EXCEPT 90 day rule • comp time must be used within 12 months of date earned or it will lapse

10. ORP/Exempt Employees • Exempt employees whose positions are eligible for ORP are not eligible to accrue comp time • Exception: ORP Exempt employees are eligible to accrue holiday compensatory time for hours worked on a holiday (See page 38 in this packet for more information)

11. 90 Day Rule for State Comp Time • Applies to non-exempt or TRS/exempt employees • If employee requests to use their comp time not later than the 90th day before it is to lapse, the department head shall either • 1. Approve in writing the employee’s request; or • 2. Provide the employee with an alternate date to use the time • if within 90 days, department head is encouraged to reasonably accommodate employee’s request before lapse

12. Work Week defined • At UNT: Period beginning at 12:01 a.m. on Sunday and extending through midnight the following Saturday • The minimum workweek for regular full-time salaried employees is 40 hours

13. Hours Worked defined All time spent by a staff member that is primarily for the benefit of the University and that is controlled or directed by the University including: • “on-duty” time • time in which employee is permitted to work, even if not requested or required • waiting or “idle” time (e.g. rest periods, etc.) • time spent traveling on official business • time spent in training directed or approved by supervisor • time spent adjusting grievances • time in an on-call status where staff member is restricted to home and the on-call conditions are so restrictive that they can’t pursue personal activities

14. FLSA (1.5) - non-exempt employee Sun: worked 2 hours Mon: worked 8 hours Tues: worked 8 hours Wed: worked 9 hours Thurs: worked 8 hours Fri: worked 8 hours Sat: off Example: FLSA Comp Time Earned Hours physically worked: 43 (3 hours @1.5 = 4.5 comp time)

15. Example: State Comp Earned • Non-exempt OR TRS/exempt employee • Sun: off • Mon: worked 10 hours • Tues: worked 4 hrs; sick 4 hrs. • Wed.: worked 11 hours • Thurs: worked 8 hours • Friday: worked 8 hours • Sat: off Hours physically worked: 41 Hours Paid leave & worked: 45 Non-exempt: 1@1.5 = 1.5 Exempt: 5.0 @1.0 = 5.0 4 @1.0 = 4.0

16. Required Timekeeping Forms • All forms can be found on the HR website at www.hr.unt.edu/main, click on Forms List Table • UPO-24: Regular Employee timecard (required for all non-exempt & TRS/exempt employees) • UPO-25: Staff Accrual Card (required for all Staff members) • UPO-15: Request for Leave/Overtime (required for all Staff members)

17. EIS Time and Labor • Required timekeeping reporting system for all employees • Requires 2 separate data entry and approver personnel for appropriate fiscal controls, documented by signatures on employee timesheets

18. ADM CT1 CT5 CP1 CP5 DOC EMG FHD FSF HWK JUR MIL REG SCK SHB (Police Dept. only) SHF (Police Dept. only) SHW (Dining Serv. only) SPT UNVAD VAC UCWK EIS Salaried Time Reporting Codes Note: Never use a time reporting code that begins with “X”

19. Demo Time! Time Sheet Example and Data Entry into EIS

25. Payment of Overtime • Overtime can be paid to non-exempt employees: • When taking comp time would be disruptive to critical work functions, with prior VP approval only • When accrued 1.5 comp time exceeds 240 hours (only the balance above 240 can be paid) • When an employee is promoted or reclassified to an exempt position • At termination of employment • Exempt employees are not eligible to be paid for overtime

26. Payment of Overtime • Overtime for non-exempt salaried employees and for hourly employees is paid using EIS Time and Labor • Hourly employees are paid overtime automatically when they work more than 40 hours in a work week • Non-exempt salaried employees are paid by using comp payout time reporting codes (CP1, CP5) in EIS Time and Labor. • Comp time must be accrued into the employee’s Time and Labor leave balances before it can be paid • Prior VP approval of overtime payments is required

27. Calculation of 1.0 Overtime Payment • 1.0 overtime is paid at the Regular Hourly Rate of pay • Example: • Annual salary of $25,000/2080 hours equals Regular Hourly Rate of $12.02 • 10 hours of 1.0 overtime x $12.02 = $120.20

28. Calculation of 1.5 Overtime Payment • 1.5 overtime is paid partially at the Regular Hourly Rate and partially at the FLSA Premium Rate • FLSA Premium Rate includes the Regular Hourly Rate plus the hourly equivalent of any additional payments (Longevity, BRP, Hazardous Duty, Shift Pay, Overtime, etc.) received in that work week less any amount docked for that week • FLSA Premium Rate will vary person to person, week by week based on the weekly amount earned by that employee and the total hours compensated for that week

29. Calculation of 1.5 Overtime Payment • Example: • Regular Hourly Rate = $12.02 • FLSA Premium Rate = $12.71 (calculated by EIS to include all additional payment amounts) • 8 hours of 1.5 overtime is paid as follows: • 8 hours x 1.0 x $12.02 = $96.16 • 8 hours x .5 x $12.71 = $50.84 • Total payment = $146.99

30. Comp Time at Status changes • Changing from Non-Exempt to TRS or ORP Exempt position: • Unused 1.5 comp time must be paid in cash at the time of the status change • 1.0 comp time accruals may continue to be used until the balance is used or the time lapses • Changing from TRS Exempt to ORP Exempt position: • 1.0 comp time accruals may continue to be used until the balance is used or the time lapses

31. Multiple Jobs / Dual State Employment • When working more than 1 job, the total of all jobs and their occupational category(ies) determines any overtime liability • Dual state employment occurs when an employee has more than one job for one or more departments within the University or for more than one Texas state agency • Once 40 hours have been exceeded in work week, all employers are responsible for comp time accruals and/or overtime payments

32. Multiple Jobs / Dual State Employment (cont’) • For salaried employees some jobs can be excluded from overtime liability if the additional job is “occasional or sporadic” in a substantially different capacity from their regular job • Example: an Admin Asst I who is selling tickets at a sports event • Employee’s responsibility to inform supervisor about other jobs • Department’s responsibility to ensure proper compensation, if necessary • Consultation with HR Compensation section is recommended before any additional work is performed

33. Non-exempt Regular Staff performing a Separate Job • If the separate job to be performed is within the same “occupational category” as the employee’s regular non-exempt job • Then the hours must be reported through Time and Labor as Regular hours worked, and any cash payouts must be authorized and paid by their regular department • If applicable contact the Budget Office to transfer funds for the expense

34. Strategies for Limiting Accumulation of Compensatory Time • Departmental policy may restrict compensatory time for emergency or pre-approved situations only • If necessary, invoke disciplinary action for violation of departmental policy • Allow flexible scheduling within the work week • Encourage cross-training and establish work pools/teams

35. Strategies for Limiting Accumulation of Compensatory Time • Use part-time or temporary employees during peaks • Audit tasks and systems for efficiency, effectiveness, value to the mission of the department and University, and use of technology

36. Administrative Items • “Holiday” Comp-time • Compensation for hours worked on a designated holiday will be governed by UNT Policy 1.4.5. When these hours exceed the 40 hour work week, hours in excess of forty will be treated as overtime worked and banked as comp time at 1.0 or 1.5 whichever is applicable. • Hours worked on a holiday, up to the number of holiday hours granted, should be coded as HWK in EIS Time & Labor. However, if the number of hours worked exceed the total number of holiday hours granted, those excess hours should be coded as REG in EIS Time &Labor.

37. Administrative Items (cont’) • Comp time accruals cannot be transferred from one State agency to another • Employees should use or (if applicable) receive cash pay for accrued comp-time before transferring from one University department to another, unless the hiring department agrees to accept the comp-time balance

38. Question and Answer • Thank you for your attendance! • Please contact us with any additional questions