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PSNE-5 Overtime Pay for Employees Classified as Staff Nonexempt

Policy: PSNE-5
Subject: Overtime Pay for Employees Classified as Staff Nonexempt
 
Approval Date: 07/01/85
Revision Date: 04/30/93, 12/16/05, 09/15/05, 09/30/16; 08/08/19
Last Review Date: 08/08/19
 
 
PURPOSE:
To establish provisions for paying overtime to employees classified as nonexempt for hours worked in excess of 40 in a workweek in accordance with the Fair Labor Standards Act of 1934 (FLSA).
 
OVERTIME PHILOSOPHY:
As a rule, it is expected that the University's various workloads should be accomplished within the basic schedule of the workweek. It is the policy of the University to discourage overtime work situations. Each supervisor is responsible for organizing, scheduling, and staffing workloads in a manner that will avoid the development of overtime work situations wherever possible.
 
This policy applies to situations which require overtime work, such as the extension of departmental services with a resulting peak overload or unforeseen circumstances which prevent accomplishing the work during regular hours.

Overtime, if required, shall be performed only at the approval of the supervisor.
 
OVERTIME PAY:
Overtime pay is based on hours actually worked and is calculated at a rate of one and one-half times the employee's regular hourly rate for each hour worked beyond 40 hours in a workweek. The University's workweek begins at 12:01 a.m. on Sunday and ends at 12:00 midnight on the following Saturday. For purposes of computing overtime, each workweek stands alone. Hours worked during two or more workweeks may not be combined or averaged to determine overtime pay due. With agreement between the supervisor and employee, flexible work schedules may be used during the work week to avoid incurring overtime.
 
Hours worked include all time an employee is required or permitted to perform activities beneficial to the University and on the University's premises or at a prescribed work location except for meals or other periods when the employee is free from duty. Work breaks or rest periods of short duration, such as five (5) to fifteen (15) minutes, are considered to be hours worked. Meal periods of thirty (30) minutes or more are considered non-work time.  Travel time to and from work is not considered work time; however, travel at the request of the employer may be compensable.
 
For purposes of determining overtime, vacation leave, sick leave, funeral leave, holiday and any other time when the employee is not physically engaged in work are not considered. Work performed on University holidays is at the regular rate, unless it is overtime work.
 
Overtime provisions also apply when an employee works in more than one department. If an employee normally works 37.5 hours per week in one department and performs services in another department, i.e. teaching a class, any hours worked between 37.5 and 40 are paid at the regular rate and hours over 40 are paid at the overtime rate.
 
Compensatory time off in lieu of overtime pay is prohibited by Kentucky Wage and Hour Laws. Therefore, the employee must be paid for all overtime.
 
 
EQUIVALENT TIME:
A full-time employee who works in excess of his/her regular weekly schedule but less than 40 hours in the week shall receive equivalent time off for such hours under 40. Such equivalent time off is used for absences where vacation leave would be charged, is scheduled in the same manner as vacation, and is to be used for such absences before vacation leave is charged.
 
Its is permissible for the unit to pay out accumulated equivalent time by paying the employee for each hour accrued to reduce their accumulated equivalent time balance. Such payments must be made at the regular hourly rate of pay received by the employee at the time of payment.
 
At the time of transfer to another unit, the transferring employee must be paid for all accrued equivalent time by the unit in which it was
earned. Such payment must be made at the regular hourly rate of pay received by the employee at the time of transfer.
 
RECORD OF HOURS WORKED:

For all employees, full-time and part-time, in positions classified as nonexempt a record of total hours worked must be maintained within the administrative unit for a period of three years. Hours worked must be documented in three separate categories: 1) regular time, 2) equivalent time (for employees whose scheduled workweek is 37.5 hours), and 3) overtime.
 
UNAUTHORIZED WORK:
Supervisors are required to approve any work for nonexempt employees that is in excess of their regular work schedule. Work on personal devices, e.g., smart phones, tablets, home computers, is prohibited for nonexempt employees outside the normal work schedule unless authorized by the supervisor. Nonexempt employees who engage in unauthorized overtime work may be subject to disciplinary action. Supervisors should implement management controls to assure that unauthorized overtime work is not being performed.
 
SUPPLEMENTAL WORK ASSIGNMENTS AND COMPENSATION
In rare situations, a nonexempt employee may be asked to perform a supplemental work assignment for another University department (not their assigned department). Time worked on a supplemental assignment is not a separate entity but a combination of the regular job and supplemental duties, so all hours worked for each department must be reported and compensation computed as defined in the policy; therefore, a flat fee may not be paid.
 
When a non-exempt employee works two jobs at two different rates of pay, a blended overtime rate will be calculated in which the hours worked at each rate are combined to determine a weighted average rate of pay. The employee is then paid overtime at one and one-half that weighted average for all overtime hours worked.

All hours worked by an employee in a supplemental assignment in another department, whether the employee works a 37.5 or 40 hour workweek, will be paid at one and one-half the employee's regular rate of pay or the weighted average rate of pay even if the time worked is not overtime work as defined by the Fair Labor Standards Act (over 40 hours in a workweek).
 
EMERGENCY CALL OUT:

  • An employee who is called out by his/her supervisor outside their normal work schedule shall be credited with a minimum of two working hours, which will be paid at one and one-half the employee's regular rate of pay. This applies only to emergency situations as defined below in which the work to be performed has not been previously scheduled.
  • To avoid significant service disruption
  • To avoid placing employees or the public in unsafe situations
  • To protect and/or provide emergency services to property or equipment
  • To respond to emergencies with students
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