This policy provides guidance on overtime eligibility, use, and payouts, including paid overtime and compensatory time off for non-exempt hourly-paid employees.
For purposes of this policy, MU Health Care (Hospitals and Clinics) is a separate organizational unit, and its employees are not eligible for compensatory time in lieu of payment.
If any part of this policy does not reflect the Fair Labor Standards Act (FLSA), the provisions of FLSA will govern.
HR Policy Provisions
- Overtime – Time worked beyond 40 hours per workweek.
- Compensatory Time – Time off in lieu of overtime payment (hereafter referred to as “comp time”).
- Non-exempt hourly-paid employees, regardless of FTE or benefit-eligibility status, are eligible for overtime pay.
- Each University or unit may determine whether to compensate eligible employees with overtime pay or paid time off in lieu of payment (i.e., comp time).
- For purposes of this policy, MU Health Care (Hospitals and Clinics) does not qualify for comp time off in lieu of overtime payment.
- Overtime Earned
- Eligible employees are entitled to receive one and one-half times their regular rate of pay for all hours worked in excess of 40 in each workweek. Where an employee in a single workweek works at two or more different types of work for which different regular rates of pay have been established, overtime premium pay is based on the rate applicable to the work performed during overtime hours.
- The University has defined the workweek as beginning on Sunday 12 a.m. (midnight) and ending on Saturday 11:59 p.m. See HR-202.
- Overtime Payment
- Overtime pay is based on overtime hours worked and may include the value of non-discretionary compensation earned, including University-paid meals, pay differentials, incentives with pre-established agreements, and other forms of compensation earned during the period when overtime is worked.
- Hours paid but not actually worked do not apply to overtime calculations. See Q&A for examples.
- Each workweek stands alone for purposes of calculating overtime.
- Employees assigned overtime hours are expected to work the hours unless excused for good and sufficient reasons.
- Employees who work overtime without authorization must be compensated for the hours worked. However, working unauthorized overtime may be a cause for disciplinary action.
- Paid time off in lieu of overtime pay may be authorized pursuant to section IV of this policy.
- The standard calculation and payment for overtime apply to hospital and law enforcement employees unless an alternative method compliant with the FLSA has been authorized by the campus CHRO.
- Overtime Earned
- Comp Time
- Earning Comp Time
- Eligible employees may earn time off at the rate of one and one-half hours for each overtime hour worked in a workweek.
- Employees may accumulate up to the FLSA maximum of 240 hours of comp time (i.e., 160 hours of actual overtime hours worked). Individual operating units may establish lower limits for the unit, but not for individual employees.
- If an employee reaches the maximum comp time accrual, the University must pay for additional overtime hours.
- Using Comp Time
- Using accrued comp time for time off from work shall be paid at the employee’s regular rate of pay.
- Comp time must be earned before it is taken and may be used at the employee’s discretion, subject to supervisory approval. The supervisor may not deny the request to use comp time unless it would unduly disrupt University operations.
- All employees shall continue to follow department-established guidelines for attendance and to request approval for time off.
- Employees may be required to use their accrued comp time to cover absences instead of utilizing other paid time off and prior to unpaid leaves of absence.
- Employees may be required to take time off to reduce comp time balances. As much advance notice as possible should be given to employees when mandating the use of comp time.
- Paying Unused Comp Time
- The University may, at its discretion, cash-out accumulated comp time at the employee’s current rate of pay, at any time, by paying the employee for any portion of unused comp time.
- Employees transferring departments or moving into a position ineligible for comp time will be paid lump-sum for unused comp time balances. Payment will be at the employees’ rate of pay prior to transferring.
- Employees separating from the University will be paid lump-sum for unused accrued comp time balances. Payment will be at a rate not less than the average regular rate received by the employee during the last three (3) years of the employee’s employment or the final regular rate received by the employee, whichever is greater.
- Requirement, Agreement
- An agreement must be reached between the employee and the University concerning comp time earned before work is performed. An agreement may include a department policy that has been communicated to employees, language in an offer letter, or other methods that establish an agreement to accept comp time in lieu of paid overtime.
- The agreement does not have to be in writing and may be evidenced by the employee working overtime knowing that the department utilizes comp time instead of paid overtime.
- The University need not adopt the same agreement or understanding with all employees.
- Periodic cash payment of overtime hours does not negate the comp time agreement.
- Earning Comp Time
- Overtime and comp time are recorded in the University’s central payroll system as part of the regular payroll process.
- Each employee’s accrued comp time balance is the amount recorded within the University’s central payroll system.
- Payment of unused balances are calculated after the employee’s effective date of transfer or separation, whichever is applicable. The balance will be paid lump-sum on the paycheck following the next regular paycheck.
HR-106 Reporting Hours Worked
HR-202 FLSA Status(labeled as Classification Status)
HR-211 Overtime and Compensatory Time Off Q&A
HR-212 Call In/Call Back, Standby
HR-213 Shift Differential
Date Created: 09/26/1997;
Updated: 01/01/2002; 07/01/2002; 08/23/2009; 04/07/2017; 11/15/2022;