How do you calculate overtime for employees in non-exempt job classifications?
FLSA requires that overtime be calculated on the employee’s regular rate of pay, by multiplying 1.5 the regular rate of pay by the number of hours over 40 in the work week. The employee’s regular rate of pay includes all remuneration for employment paid (e.g., hourly rate or comp rate) to or on behalf of the employee. The FLSA requires the inclusion in the regular rate of such extra premiums as shift differentials and nondiscretionary lump sum payments (e.g., stability or career bonus payments). The city utilizes the higher of applicable hourly rates to calculate overtime payments. FLSA excludes some payments from the regular rate of pay (e.g., discretionary bonus payments, reimbursement for travel expense, contributions to retirement funds, and health insurance).
How does travel affect overtime?
Employees in non-exempt job classifications who travel on city business are paid in the following manner:
- One-Day Assignments in another City: Non-exempt employees who regularly work at a fixed location but may be required to travel to another city for a one-day assignment (but not gone overnight) should be compensated for the hours spent in travel. Regular meal time is deducted as well as any “home-to-work” time which may be included.
- Travel of More Than One Day: Employees working in non-exempt job classifications whose positions require them to travel and be gone overnight should be compensated for any travel time that occurs during their regular work hours occurring any day of the week. For example, if an employee regularly works 9:00 a.m. to 5:00 p.m. Monday through Friday, travel time during these hours is considered work time whether it occurs on a week day, Saturday, or Sunday. Time spent in travel outside of regular work hours is not considered work time.
How is overtime calculated for V-Class, Part-Time Employees?
V-class part-time employees shall be paid or receive compensatory time off at the straight-time rate for all hours worked in excess of their appointment percentage, up to 40 hours. They will be paid at one and a half times (hourly rate of pay or in comp time off) for all work over 40 hours in a week.
How are payments calculated when temporarily filling in for a V-Class positions?
Whenever an employee is temporarily filling in for a V-class position (through a $/hour augmentation), the department has the option of either paying the time and one half for any overtime hours worked, or granting the employee the extra half day vacation allowance per month for the duration of the temporary augmentation.
How is overtime paid with multiple appointments?
City employees may hold more than one appointment (i.e., multiple appointments). There is no limit to the number of appointments an employee may hold either simultaneously or consecutively. Appointments can be held, simultaneously, in more than one employee group. Employees can simultaneously hold appointments in both exempt and non exempt job classifications.
Generally the overtime and record keeping provisions of the Fair Labor Standards Act do not apply to employees working in exempt job classifications. However, overtime and record keeping provisions apply when an employee simultaneously holds appointments in exempt and nonexempt job classifications.
The Multiple Appointments Within and Across Employee Groups matrix explains overtime pay requirements for employees with multiple appointments.
Do technical consultants receive overtime payments?
Individuals employed as technical consultants (job code 0011) are not eligible for time and half. This exempt classification is not covered by the Civil Service Rules.
Does on-call time count for overtime?
Hours spent in on-site (on the employer’s premises), on-call status count as regular hours worked and also are counted towards overtime (if the total hours worked that work week exceed 40). However, a different base pay rate, not lower than the federal minimum wage, may be established for on-site, on-call hours.
Does paid time-off count for overtime?
Overtime worked in a work week in which an employee has taken paid time off (vacation, sick leave, or paid holiday) is compensated at the appropriate premium rate. For example, a nonexempt employee that works three extra hours on each of two evenings a week during which a scheduled holiday falls should receive overtime pay for the six hours. The City practice is to count paid time for hours not worked toward the 40-hour work week requirement.
What is comp time?
FLSA allows most city employees to choose comp time at one and one half times for each hour worked over 40 in a week rather than a cash payment. The FLSA limits accrual of comp time at 240 hours or 160 hours of actual overtime hours worked for all non-exempt employees. Police, emergency response, and seasonal employees have a maximum accrual of 480 hours of comp time or 320 hours of actual overtime hours worked.
Units have full discretion to: Reasonably restrict the amount of comp time that can be accumulated (with a maximum of 240 hours or 160 hours of actual time worked for all nonexempt employees) and the length of time a comp time-off balance can be carried. Units can establish a rule that employees use comp time before using vacation time.
How is comp time paid out?
Cash payments for accrued comp time can be made at any time and must be paid at the regular rate earned by the employee at the time the employee receives payment. If an employee is transferring or moving from one unit to another unit, the unit where the employee accrued the comp time off must pay it out.
Upon termination, an employee must be paid for unused comp time figured at the average regular rate received by such employee during the last three years of employment (immediately prior to termination) or the final regular rate received by such employee, whichever is higher.
How is overtime calculated for dual appointments?
Overtime pay of one and one half times is required for hours exceeding 40 hours in a work week in the nonexempt appointment. Overtime pay is calculated on the hourly rate of the higher paying appointment (base pay plus an augmentation). No lump sum payments are permitted.