Change in Overtime Payment Policy

PD-91, “Work Cycles and Compensable Hours of Work,” has been revised effective January 1, 2007, to reflect that FLSA non-exempt employees who are eligible to accrue FLSA overtime will no longer be required to “bank” 240 overtime hours before receiving payment for overtime worked. Any overtime hours “banked” prior to January 1, 2007, shall be maintained in an employee’s accrued overtime balance to be used as leave during employment or paid in a lump sum upon separation from employment. Wardens and Department Heads shall ensure that all supervisors and affected employees are aware of this change.

This change applies to all FLSA non-exempt employees who work FLSA overtime hours.

Employees will receive payment for all future overtime hours worked on or after January 1, 2007. Overtime hours worked on or after January 1, 2007 will no longer be “banked”.
The first overtime payment to reflect this change will be for overtime hours accrued in January 2007, which will be paid via overtime payroll approximately mid-February 2007. The overtime payment will not include compensation for overtime hours that were worked and “banked” prior to January 1, 2007.
Future manual time adjustments processed after January 1, 2007 for overtime worked shall be based on the procedures effective during the month the overtime was worked. If the manual time adjustment is for overtime hours worked prior to January 1, 2007, the hours shall be “banked” unless the employee already has 240 “banked” overtime hours. If the manual time adjustment is for overtime hours worked on or after January 1, 2007, the employee shall receive compensation for the overtime hours.

For additional information, please see PD-91, “Work Cycles and Compensable Hours of Work”.

Authority: Brad Livingston, Executive Director

Page updated: 12/06/2011