Overtime and Compensatory Time Guidelines

With the implementation of the campus Financial Accrual Program, it is more important than ever to ensure that leave balances are kept current and that compensatory time banks are closely monitored. RSSP recently conducted a review of department procedures and guidelines and current contract and policy articles related to overtime. Specifically, we reviewed practices related to the assignment of overtime, compensation for overtime worked, and the scheduling of compensatory time off. Below is an overview of overtime policies and an update of RSSP’s guidelines. These guidelines apply to all non-exempt employees.

Below is a summary (AFSCME, CUE, UPTE and PPSM) of the articles and policies that were in effect at the time this section was written. For information regarding the Skilled Trades Agreement go to http://hrweb.berkeley.edu/labor/contracts/crft12.htm or contact Cynthia Davis at 643-8662 or crdavis@berkeley.edu. This document summarizes key factors you’ll want to consider when 1) scheduling and approving overtime and 2) monitoring compensatory time banks. It is still important to refer to the individual contracts and Personal Policies for Staff Members (PPSM) particularly regarding decisions concerning assignment of overtime including rotation, seniority, and rate of pay for split-coded employees.

Additionally, RSSP has developed some internal policies that supplement those documented in PPSM and contracts.

For more information on topics related to overtime and compensatory time off, refer to the relevant agreement or policy manual. If you need clarification on the interpretation of any these policies, please contact Cynthia Davis at 643-8662 or email her at crdavis@berkeley.edu.

Overview

For PPSM and all contracts, overtime is time worked which exceeds the hours of a full-time employee's regular daily schedule on pay status or exceeds forty (40) hours on pay status in a workweek. Exempt employees are not eligible to accrue or be compensated for overtime.

• Pay status includes time worked and paid leave such as sick leave, vacation leave, holidays, military leave, compensatory time off and administrative leave with pay.
• Overtime hours are compensated at one and one-half times (1½ x) the straight time rate only when an employee has actually worked in excess of forty (40) hours in the scheduled workweek. This is also known as ‘premium time’. Actual time worked for the purpose of computing premium overtime does not include hours paid in non-work status, such as sick leave pay, vacation pay, holiday pay, compensatory time, and other paid leaves of absence.

How is overtime assigned?

For all contracts and PPSM, management shall assign overtime to meet essential operating needs. Except in emergencies, all overtime must be approved in advance. The rules for who is assigned to work overtime vary amongst the contracts and PPSM.

How are employees compensated for overtime worked?

The articles and policies for banking and scheduling compensatory time off vary. For all contracts and PPSM, employees who earn approved overtime can be compensated in one of two ways. The overtime can be paid to the employee or it can be banked as ‘compensatory time’ and scheduled as time off in the future.

For RSSP employees covered by PPSM and all contracts, compensatory time is calculated as follows: one hour of compensatory time off for each hour of overtime earned at the straight time rate of pay; and one and one-half hours of compensatory time off for each hour of overtime earned at the time and one-half rate of pay.

RSSP rules for banking compensatory time

• Compensatory time should not be accumulated for the purpose of extending vacation leaves.
• Managers and supervisors are expected to monitor their employees’ balances.
• Monthly reports are issued to directors to help them in monitoring their employees’ compensatory balances.

RSSP rules for scheduling compensatory time off

• Management is to encourage staff to use compensatory time in increments, not necessarily week(s) at a time. The use of compensatory time to extend vacation leaves should be discouraged.
• Management is to encourage the use of vacation leave, so that employees do not reach their maximums and find themselves forfeiting vacation accruals in order to decrease the accrued compensatory time hours.

Below are specifics related to each contract (for RSSP employees) and PPSM.

I. AFSCME Service Employees (effective and ratified May 2005)

Assignment

Overtime is assigned in the following order of priority:

1. When practicable, by rotation based on seniority among those employees on the same shift who normally perform the work involved. Seniority meaning that when there are employees requesting to work the overtime, assignment of that overtime shall be based on greatest seniority.
2. When no employee requests to work the overtime, assignment shall be based on inverse order of seniority.
3. The University may, at its discretion, assign overtime work to employees irrespective of seniority who possess skills, knowledge, or abilities which are not possessed to the same degree by other employees in the department/division and which are necessary to perform the required work.

Pay or Compensatory Time?

The employee may, upon hire and thereafter during the month of June, file a written indication of preference (copy attached) for either compensatory time off or pay with the employee’s immediate supervisor. The University grants the indicated preference. The immediate supervisor is responsible for ensuring compliance with the preference. For employees using timesheets, overtime is approved by the manager by completing an overtime approval form (copy attached). For those employees who punch timeclocks, managers and supervisors approve and record the preference on the Universe Payroll System.

Banking Compensatory Time

1. A maximum of 240 hours of compensatory time off may be accumulated. Hours of overtime, which exceed this limit, must be paid. Compensatory time off shall be scheduled by the University and taken within two six-month bank periods (January 1 - June 30; July 1 - December 31). Banked compensatory time off which is not paid or scheduled within the bank period in which it is earned or in the bank period following that in which it is earned shall be paid in the next regularly scheduled pay period unless an extension has been granted by mutual consent of the employee and the University.
2. RSSP has established two blanket exception periods for AFSCME employees: 1) a blanket exception for the July – December bank period until the end of January and 2) a blanket exception for the January – June bank period until the end of July. Managers are responsible for monitoring and staying in compliance with these bank periods.
3. Compensatory time off is scheduled by the University. The University may require employees to take compensatory time off. Employees may also request use of compensatory time; such requests shall be granted subject to the operational needs of the University. Use of compensatory time off requires prior approval in accordance with departmental policy.
4. If an employee requests to have compensatory time paid off, the manager must submit an email to the payroll specialist assigned to that unit. Compensatory time cannot be paid off by managers (and designees) on the Universe Payroll System in a lump sum.

II. CUE Clerical Employees (effective 5/12/03-9/30/04; no new contract as of 10/26/05)

Assignment

Overtime is assigned in the following order of priority:

1. When practicable by rotation based on seniority among those employees on the same shift who normally perform the work involved. Seniority meaning that when there are employees requesting to work the overtime, assignment of that overtime shall be based on greatest seniority.
2. When no employee requests to work the overtime, assignment shall be based on inverse order of seniority.
3. The University may, at its discretion, assign overtime work to employees irrespective of seniority who possess skills, knowledge, or abilities which are not possessed to the same degree by other employees in the department/division and which are necessary to perform the required work.

Pay or Compensatory Time?

The employee may, upon hire and thereafter during the month of June, file a written indication of preference (copy attached) for either compensatory time off or pay with the employee’s immediate supervisor. The University grants the indicated preference. The immediate supervisor is responsible for ensuring compliance with the preference. For employees using timesheets, overtime is approved by the manager by completing an overtime approval form (copy attached). For those employees who punch timeclocks, managers and supervisors approve and record the preference on the Universe Payroll System.

Banking Compensatory Time

1. A maximum of 240 hours of compensatory time off may be accumulated. Hours of overtime, which exceed this limit, must be paid. Managers are responsible for monitoring balances and staying in compliance with guidelines.
2. An employee's request for the scheduling of banked compensatory time shall be granted subject to the needs of the University and shall not be unreasonably denied.
3. If an employee requests to have compensatory time paid off, the manager must submit an email to the payroll specialist assigned to that unit. Compensatory time cannot be paid off by managers (and designees) on the Universe Payroll System in a lump sum.

III. UPTE Technical Unit (effective 6/30/03-9/30/04, no new contract as of 10/26/05)

Assignment

Overtime is assigned in the following order of priority:

1. When practicable by rotation based on seniority among those employees on the same shift who normally perform the work involved. Seniority meaning that when there are employees requesting to work the overtime, assignment of that overtime shall be based on greatest seniority.
2. When no employee requests to work the overtime, assignment shall be based on inverse order of seniority.
3. The University may, at its discretion, assign overtime work to employees irrespective of seniority who possess skills, knowledge, or abilities which are not possessed to the same degree by other employees in the department/division and which are necessary to perform the required work.

Pay or Compensatory Time?

The employee may, upon hire and thereafter during the month of June, file a written indication of preference (copy attached) for either compensatory time off or pay with the employee’s immediate supervisor. The University grants the indicated preference. The immediate supervisor is responsible for making sure the request is complied with. For employees using timesheets, overtime is approved by the manager by completing an overtime approval form (copy attached).

Banking Compensatory Time

1. A maximum of 240 hours of compensatory time off may be accumulated. Hours of overtime, which exceed this limit, must be paid. Managers are responsible for monitoring balances and staying in compliance with guidelines.
2. An employee may request to schedule the use of banked compensatory time. An employee's request for the scheduling of banked compensatory time shall be granted subject to the needs of the University and shall not be unreasonably denied.
3. If an employee requests to have compensatory time paid off, the manager must submit an email to the payroll specialist assigned to that unit. Compensatory time cannot be paid off by managers (and designees) on the Universe Payroll System in a lump sum.

IV. Personnel Policies for Staff Members Who Are Non-Exempt (also unrepresented staff) (effective 7/1/96)

Assignment

Personal Policies for Staff Members (PPSM) is silent on the methodology for assigning overtime.

Pay or Compensatory Time?

All RSSP employees covered by PPSM are able to decide how they want to be compensated for their overtime using Overtime Approval Forms provided by their supervisors. These employees submit a form for each occurrence of overtime (copy attached) and check the box that matches their preference for paid overtime or compensatory time off. If a box is not checked, the overtime will automatically be paid.

Banking Compensatory Time

1. A maximum of 240 hours of compensatory time off may be accumulated. Hours of overtime, which exceed this limit, must be paid. Hours not taken within 6 months or an extended period authorized by local guidelines must be paid off. Managers are responsible for monitoring balances and staying in compliance with guidelines.
2. Compensatory time off may be scheduled by the department head within the same workweek in which the overtime is earned to avoid hours of actual work in excess of 40 in that workweek.
3. An employee must also be permitted to use the compensatory time within a reasonable period after making a request if the use of the compensatory time does not unduly disrupt the operations of the department.
4. If an employee requests to have compensatory time paid off, the manager must submit an email to the payroll specialist assigned to that unit. Compensatory time cannot be paid off by managers (and designees) on the Universe Payroll System in a lump sum.