Lake Superior State University
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Section: Business and Support Operations Section Number: 3.19.5
Subject: Salaries and Wages: Overtime Work Authorization & Compensation Policy Date of Present Issue: 07/02/01
  Date of Previous Issues:
01/87, 09/89, 09/90, 11/92, 09/95, 07/96, 03/00

POLICY:

In accordance with the Fair Labor Standards Act of 1983 and 1985, as amended Section 7, part 778, it is the policy of the University to pay non-exempt employees time and one-half of their regular hourly rate, for all hours worked in any work week in excess of the maximum of forty (40) hours, or provide compensatory time off for those eligible under the 1985 amendment. Your immediate supervisor has the right to approve/deny the accumulation of compensatory time.

Exempt employees are those in executive, administrative, managerial and professional positions, whose duties, responsibilities and type of work exempt them from the minimum wage and overtime provisions of the Fair Labor Standards Act.

Non-exempt employees are those involved in routine office, or manual types of work, under direct supervision of an administrator, and paid on an hourly basis, who are subject to the minimum wage and overtime provisions of the Fair Labor Standards Act.

Student employees of the University are limited to working nineteen (19) hours in a week during the academic year, and forty (40) hours a week during summer and semester breaks, and may not work any overtime hours.

Bargaining unit members, in addition to the law, are subject to contract provisions regarding overtime or overload compensation.

The following procedures apply to all employees not exempted from the overtime or compensatory time provisions of the Fair Labor Standards Act (as amended, 1985).

  1. Employees in the Hourly-Paid Bargaining Unit and non-exempt employees in the non-Union group (Administrative/ Professional):

    Time and one-half the applicable regular straight time rate will be paid to eligible employees for all hours worked in excess of forty (40) hours per week. Hourly paid bargaining unit employees are also eligible for overtime for all hours worked in excess of eight (8) hours per day. "Hours worked" include all hours in which an employee is required to be on duty at a prescribed workplace and all hours during which an employee is "suffered or permitted" to work, as well as actual hours worked. The computation for overtime pay will be made at one and one-half times the regular straight time rate that applies for the starting shift. For the purpose of computing overtime pay for over forty (40) hours in an employee's work week, a holiday, a sick day, or a vacation day for which the employee receives pay will be counted as a day worked.

    Employees may not work any additional time outside of their regular eight-hour schedule without prior approval of their supervisor. It is the responsibility of the supervisor to ascertain that no employee is permitted to work any unauthorized time over the normal eight-hour schedule.

    Overtime hours worked must be reported on the bi-weekly time sheets, in the pay period in which the work is performed. Payment of overtime must be approved on the employee's time sheet with the signature of the appropriate approving authority. All overtime worked must receive prior permission from the immediate supervisor before it is performed. Account executives must insure that funds are available to cover overtime cost before approval is granted.

  2. Employees in the Hourly-Paid Bargaining Unit and non-exempt employees in the non-Union group (Administrative/ Professional):

    Compensatory time (defined as hours when employee is not working and which are paid for at the employee's regular rate of pay) will replace overtime pay whenever possible as follows:

    Accrual: Compensatory time will be accrued for all hours worked over forty (40) hours in one week at the University by a non-exempt, non-union employee, at the rate of one and one-half hours for each hour worked over forty in one week, up to a maximum of 240 hours (160 hours overtime worked). In calculating compensatory time in an employee's work week, holidays, sick days, and vacation days for which the employee received pay will be counted as days worked.

    Exception: Non-exempt administrative staff may volunteer, by signing a written agreement (LSSU 346C) to teach as adjunct faculty at the normal adjunct faculty rate and be exempted from overtime for that assignment only. This agreement must be signed in advance of the services performed. Individuals may not volunteer to perform services of the same type that they are primarily employed by the University to perform.

    Use of/or Pay for Compensatory Time: Compensatory time may be accumulated up to a limit of 240 hours (160 hours overtime worked) only, and should be used as time off work within the current fiscal year. Application for use of comp time must be made on an absence request form (LSSU 231A). Overtime worked over the 160 hours accumulated will be paid in the pay period in which it is earned, at the rate of one and one-half times the hourly rate. On termination of employment or transfer to a different department, all unused compensatory time will be paid to the employee as overtime. Comp time hours taken as paid time off, are not counted as hours worked in the week in which they are paid or used. Use of comp time may not result in overtime for another employee.

    Authorization: Approval for overtime work, whether paid or accrued as comp time, must be obtained from the immediate supervisor prior to the work being performed. Work outside of the department of an employee's regular work assignment must have the prior approval of the department head, since it may involve compensatory time off from the regular department work assignment. Approval of overtime work is dependent upon the availability of funds to cover this cost. Compensatory time must be agreed to in writing by the employee prior to the work being performed on Form LSSU 346B.

    Recordkeeping: It is the responsibility of the department head to keep accurate written records of all compensatory time accrued by employees in the department, and the dates on which the compensatory time is used. Reconciliation of these records must be submitted to the Human Resources Office, for inclusion in the employee's personnel file on Form LSSU 346B on a monthly basis.

    Transfers: Prior to transferring to another department, an employee will be paid-off for all accrued compensatory time as overtime, by the department in which such compensatory time was earned.

    See Agreement between Lake Superior State University and Lake Superior State University Educational Support Personnel, MEA-NEA, for review of compensatory time guidelines for bargaining unit employees.

Definitions:

Exemption from the FLSA: Executive, administrative, managerial, supervisory and professional (including faculty) employees are exempt from provisions of the law and are not eligible for overtime pay or compensatory time off under the law. (Faculty are covered by the overload compensation provisions of their contract.) Certain Administrative/ Professional positions are classified non-exempt as specified in the following paragraphs.

Non-Exempt Positions: All positions in the ESP Bargaining Unit are non-exempt and subject to the overtime provisions of the FLSA and the union contract.

In the non-union group (A/P) the following jobs are examples of non-exempt positions which are subject to the overtime and/or compensatory time provisions of the Fair Labor Standards Act as amended in 1985.

    Administrative Assistants
    Mechanical Technician
    Microcomputer Lab Manager and Technician

This is not a complete list of non-exempt positions.

Also included are any part-time hourly positions not included in the bargaining unit (i.e. clerical workers, CHP operators and on-call food service and maintenance workers).

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