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Overtime and Exceptional Compensation
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Overtime and Exceptional Compensation

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Murray State University

POLICY NUMBER: III D

SUBJECT: OVERTIME AND EXCEPTIONAL COMPENSATION

APPLIES TO: NON-EXEMPT STAFF

EFFECTIVE DATE: July 1, 1993

REVISED FROM: February 17, 1990

OVERTIME AND EXCEPTIONAL COMPENSATION

As a general policy, it is expected that the University's various workloads should be accomplished within the basic schedule of the workweek. Due to peak workloads, unforeseen circumstances, or emergency situations which prevent the work from being accomplished during the regularly scheduled working hours, it is recognized that overtime work may be necessary.

The administrative head of the department has the authority to approve overtime work of his/her employees. Overtime work shall only be permitted with the approval of the administrative head of the department. At times employees will be required to work overtime.

Extra work for another department which may or may not result in overtime compensation for an employee must be approved by each employing department.

1. Requirement to Pay Overtime Compensation

a. Overtime compensation must be paid for all hours worked above forty (40) for the same employer. For the purpose of this policy, the University is the employer and not its individual departments or University sponsored grants and contracts.

b. If a non-exempt employee is required or allowed to work more than forty (40) hours during a workweek, the employee must be paid at least one and one-half times his/her regular hourly rate for those hours in excess of forty (40). Any hours between thirty-seven and one half (37 1/2) and forty (40) will be paid at the employee's regular rate of pay. When an employee holds more than one position, a weighted average rate of pay may be used.

2. Time Off Without Pay

a. Under the provisions of the State Wage and Hour Law an employee may not be granted time off during a future workweek in lieu of compensation for hours worked in excess of forty (40) per week. Any time off without pay must be granted during the same workweek.

b. Time off without pay during the same workweek should be scheduled by the employee's supervisor whenever possible to prevent overtime compensation. An employee may be granted or requested by his/her supervisor to take time off without pay during the workweek as scheduling of work permits to prevent overtime compensation.

3. The Workweek for Computing Overtime

a. The normal workweek of the University is from Friday midnight until the following Friday midnight. Certain departments have different workweeks based upon their individual work schedule. Any change to a department's workweek must be approved by Human Resources. Overtime resulting from work in different departments will be calculated on the workweek of the department providing the most hours worked.

b. For the purpose of computing overtime, each workweek stands alone. Hours worked during two or more workweeks cannot be averaged when computing overtime.

c. Any approved leaves with pay (holidays, vacation, sick leave, funeral attendance, etc.) granted during the workweek will be counted as hours worked for computing overtime compensation.

4. Working Hours

a. "Hours worked" includes all time an employee is required or permitted to be on duty, on the employer's premises, or at a prescribed work place, except for meals or other periods when the employee is free from duty. Periods during which an employee is completely relieved from duty and which are long enough for him/her to use the time effectively are not hours worked. Work breaks or rest periods of a short duration, such as five (5) to fifteen (l5) minutes, are considered to be hours worked; however, meal periods of thirty (30) minutes or more are considered to be non-work time.

b. Travel time may be hours worked under certain conditions. Travel that is part of an employee's regular work is considered to be working time. Ordinary travel from home to work or vice versa is not working time. If an employee is called back to work from his/her home after normal work hours, he/she will be compensated for a minimum of two hours work time.

c. An employee who is required to remain on call on the employer's premises or so close thereto that the employee cannot use the time effectively for his/her own purposes is working while "on-call." An "on-call" employee who is not required to remain on the employer's premises but is merely required to leave word where he/she may be reached, either by telephone or electronic communication device (i.e., waiting to be engaged), is not considered to be working while "on-call." When the employee in such a situation is notified to report for work, only the hours worked and travel time to and from the work place are counted as hours worked. If, however, the "on-call" conditions are so restrictive that the employee is not free to use the intervening periods effectively for his/her own purposes (i.e., engaged to wait) such waiting time "on-call" will also be counted as hours worked. Departments that have a need to implement an "on-call" policy must contact Human Resources prior to implementation in order to ensure that the policy is in compliance with the "on-call" provisions of the Fair Labor Standards Act.

5. Compensation for University Holidays

a. Employees who are required or permitted to work on University approved holidays will receive their regular rate of pay for the holiday plus overtime rate (one and one-half) of pay for any hours worked during the holiday, unless time off is granted for the hours worked.

b. An employee who is required or permitted to work on a University approved holiday may be granted time off at a future time at the rate of one and one-half hours for each hour worked on the holiday. Time off granted for holidays, in lieu of pay, must be requested by the employee and approved by the supervisor.

6. Unscheduled University Closing

An employee required to work after the University has been closed due to an unscheduled event (such as inclement weather) will be compensated at a rate equal to their regular wage plus their regular wage (double time) up to 40 hours per week. Time worked in excess of 40 hours will be compensated at a rate of regular pay plus one and one half regular pay.

7. Overtime for the Same Employer

a. An employee who holds two (2) or more positions concurrently, but in different departments, must receive overtime compensation for all combined hours worked which exceeds forty (40) for all work performed during the workweek. The overtime compensation will be paid by the department which caused the additional hours to occur.

b. When an employee is presently working in one part-time position and is hired in a second part-time position in another department, the second hiring department must notify the employee's department where he/she is presently employed due to the effect of hours worked and the possibility of overtime costs.

c. If the employee holds two (2) or more positions at different rates of pay, any overtime compensation will be computed using the weighted average of such rates or at the higher rate of pay, when the department creating the overtime is the department paying the higher rate of pay.

The formula is as follows:



Example below is for illustrative purposes only.

(1) Weekly Earnings Rate Hours Amount
Rate per hour x hours worked $7.26 x 42.0 = $304.92
+ (rate x hours in 2nd job) $5.50 x 10.0 = $55.00
Total Gross Weekly Earnings and Total Hours Worked 52.0 $359.92
(2) Establish weighted average rate per hour
Gross Weekly Earnings / Total Hours Worked = $6.92
(3) Establish half-time rates for all hours worked 
over 40 per week.
Higher Hourly Rate Position:
Hourly Rate / 2 = $3.63
Lower Hourly Rate Position:
Weighted Average Rate per Hour [see (2) Above] / 2 = $3.46
(4) Compute the additional half-time that is required for 
any hours worked over 40 per week.
Half-time Rate (3) x Hours Over 40
Higher Hourly Rate Position:
$3.63 x 2.0 = $7.26
Lower Hourly Rate Position:
$3.46 x 10.0 = $34.60
Additional Half-Time $41.86
(5) Total Pay
(1) + (4) = $401.78



(1) Weekly Earnings Rate Hours Amount
Rate per hour x hours worked ______ x ______ = $______
+ (rate x hours in 2nd job) ______ x ______ = ______
Total Gross Weekly Earnings and Total Hours Worked ______ ______
(2) Establish weighted average rate per hour
Gross Weekly Earnings / Total Hours Worked = $______
(3) Establish half-time rates for all hours worked 
over 40 per week.
Higher Hourly Rate Position:
Hourly Rate / 2 = $______
Lower Hourly Rate Position:
Weighted Average Rate per Hour [see (2) Above] / 2 = $______
(4) Compute the additional half-time that is required for 
any hours worked over 40 per week.
Half-time Rate (3) x Hours Over 40
Higher Hourly Rate Position:
$______ x ______ = $______
Lower Hourly Rate Position:
$______ x ______ = $______
Additional Half-Time $______
(5) Total Pay
(1) + (4) = $______

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