In order to compensate employees for time spent on the job in excess of their normal workweek, a supervisor may wish to allow the employee a period of time away from the job in lieu of overtime pay. Such compensatory time off policies are governed by the Federal Wage-Hour Law (Fair Labor Standards Act) for non-exempt personnel.
Support Staff must be paid at the rate of one and one-half the regular hourly rate for all hours worked in excess of forty (40) in a week. Compensatory time off in lieu of payment for overtime hours worked is allowed only if:
- it is given at the rate of one and one-half times the number of overtime hours worked, and
- it is given during the same pay period in which the overtime hours were worked.
While the information in 5.6.1 above reflects the Federal Wage-Hour Law, Institute reporting requirements must also be considered when making arrangements for compensatory time off in lieu of payment to a Support Staff member. The Institute is required to charge government grants and contracts for time worked, not just necessarily for time paid. To assure that such grants and contracts are properly charged, departments are required to maintain records which indicate exactly when and how an employee worked in a given pay period. In such instances, compensatory time should be given and reported as time off without pay to offset extra hours worked with pay.
A Support Staff employee who works on a holiday receives his or her normal day's pay, plus pay at one and one-half the normal hourly rate for the hours worked on the holiday. If a supervisor and employee arrange for compensatory time off in lieu of the premium pay for the time worked on the holiday, the time must be granted as one and one-half the hours worked on the holiday. Since hours worked on a holiday are not considered overtime within the definitions of the Federal Wage-Hour Law, compensatory time need not be taken within the pay period in which the holiday occurs.