UAMS ADMINISTRATIVE GUIDE

NUMBER: 4.2.01
DATE: 09/01/00
REVISION:  07/01/03

SECTION: HUMAN RESOURCES
AREA: INSURANCE AND BENEFITS
SUBJECT: OVERTIME COMPENSATION

PURPOSE

The Fair Labor Standards Act (FLSA) of 1938, as amended in 1986 to cover State and local governmental bodies, has defined uniform conditions under which compensation or payment will be made for hours worked in excess of the defined work day or workweek. 1 The purpose of this policy is to inform all departments within the University of Arkansas for Medical Sciences (UAMS) of these conditions so that uniformity can be established throughout the campus.

General instructions for the use of SAP/HR are found in the Manual “Personnel Administration for Department Users”, at the UAMS Enterprise website:  http://intranet.uams.edu/mercury/Manuals.htm#Human%20Resources

DEFINITIONS

(1)The term "Exempt" shall mean an employee in a position which is exempt from the overtime provisions of the Fair Labor Standards Act. Most faculty, executive, administrative, and Classified managerial positions are exempt; some professional positions at UAMS are exempt. Exempt employees are also called “Salaried” and are not eligible for overtime payment or compensatory time. SAP field “Employee subgroup” appears on most infotypes as “Full time / Salaried”, “Part time / salaried”, or “Temporary / salaried”.  The “payscale group” on infotype 0008 shows a code:  generally, exempt positions have ccodes beginning with OAxx, OBxx, OCxx, Ofxx and Zxxx.

(2)  The term "Non-exempt" shall mean an employee in a position which is covered by the overtime provisions of the Fair Labor Standards Act. Many patient care and most Classified non-managerial positions at UAMS are non-exempt. Non-exempt employees are also called “hourly” and  must be paid overtime or compensatory time as specified in this policy or in UAMS Procedure 4.2.02. SAP

Field “Employee subgroup” appears on most infotypes as “Full time / hourly”, “Part time / hourly”, or “Temporary / hourly.” The “payscale group” on infotype 0008 shows a code:  generally, non-exempt positions  have class codes beginning with Axxx through Yxxx, 66xx, 67xx and 68xx.

 (3)  The term "Hours Worked" shall mean all hours and minutes in which the employee is required or allowed to perform duties for the benefit of the University. Hours worked also includes call back, paid jury leave hours, required meetings, seminar time, and paid military leave hours. Vacation, sick leave, holidays, compensatory time used, military leave unpaid, catastrophic leave, family medical leave unpaid, unpaid leave, and other forms of time off are not counted as hours worked for overtime calculations. Employees may be paid for 40 hours worked plus hours for sick or vacation, under circumstances which encourages the employee to meet the operational needs of their department. That is, when a vacation or sick day has legitimately been taken and the employee is asked to "make up" the work or work an extra shift, the employee will not be punished by loss of the paid time-off. This, however, still does not qualify for overtime pay.
 

PROCEDURE

  1. Each department is required to maintain a record of the total daily hours worked for each employee in a non-exempt (“hourly”) position and to retain such records for a minimum of two years. Specific times for start, stop, lunch, and break may be recorded, although this is not required; this is automatic for departments requiring employees to clock IN and OUT on Accutime (Kronos). Departments not requiring clocking by employees must maintain the daily total times on paper timesheets for two years.  
     
  2. Only those classifications deemed non-exempt (“hourly”) are authorized for overtime payment or compensatory time off. Call the Office of Human Resources (OHR) if you have questions about eligibility.  
                                                                                                      
  3. Monetary payments for overtime worked are to be made only in extreme circumstances, based on judgment by the department head of the critical nature of the work and/or the future possibility for compensatory time off. Generally, compensatory time off is the preferred method of compensation.
     
  4. Overtime is due to employees in non-exempt (“hourly”) classifications when the "total hours worked" during the workweek exceeds 40 hours; this 40 hour formula applies to all classifications and is automatically generated in Accutime (Kronos) for those employees clocking IN and OUT routinely as OT. For employees not clocking, overtime must be entered by the Timekeeper as a "paycode edit" as OT. Timekeepers may also move hours from OT to COMPA (comp accrued) using the "move" function in Accutime. NOTE: The 8/80 formula of overtime was discontinued at UAMS as of September 15, 1991.      
                    
  5.  Employees in non-exempt (“hourly”) classifications must be paid at a rate of one and one-half of their average hourly rate of pay for the week in which the overtime was incurred, according to the 40-hour formula. Compensatory time off in lieu of overtime payment may be recorded for the employee at a rate of one and one-half hours for every hour of overtime. A maximum of 160 overtime hours or 240 equivalent hours may be recorded, with the exception of public safety officers who may record a maximum of 320 hours overtime or 480 equivalent hours. Thereafter, all overtime hours must be paid on a biweekly basis.  
                                                                                                                           
  6. Overtime payments made on a biweekly basis are not included in calculations for Line Item Maximum salary. Compensatory time off, when paid, is considered to be a part of normal salary and is included in calculations for Line Item Maximum salary.
     
  7. Employees in "exempt" (“salaried”) positions are not eligible for statutory overtime payment or compensatory time off. Exempt /salaried employees may be informally granted, at the discretion of their department director, time off or other considerations when excessive hours have been worked.3
                                                                                      
  8. Any balance of compensatory time off for a non-exempt (“hourly”) employee must be paid at termination on the employee’s final check.

REFERENCES
1   UAMS Policy 4.3.02, Definition of Workday, Shift and Pay Provisions
2   UAMS Policy 4.2.02, Compensatory TimeOff AHRMS, OPM Policy, Section 110. See http://www.state.ar.us/dfa/opm/index.html
3   UAMS Policy 4.2.11, Paying Excess Hours for Exempt Personnel