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, 2017
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

   1. 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.

   2. 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 for overtime calculation.

2. Time Off Without Pay

   1. 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.

   2. 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

   1. The normal workweek of the University is from 12:00 a.m. Saturday until 11:59 p.m. the following Friday.    

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

4.  Working Hours

   1. "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 for his/her own purposes are not hours worked. Work breaks or rest periods of a short duration, such as five (5) to about twenty (20) minutes, are considered to be hours worked; however, meal periods of thirty (30) minutes or more are considered to be non-work time when the employee is completely relieved from duty. 

   2. Travel time may be hours worked under certain conditions. Travel that is related to an employee's regular work may be considered to be working time. Human Resources should be contacted for guidance.  Ordinary travel from home to work or vice versa is not working time.

   3. 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.

   4. 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 who is not working 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

   Employees who are required or permitted to work on University approved holidays will be compensated as provided in Holiday Policy IV D 2(b). 

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

   1. 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 department charged the overtime compensation may vary.

   2. 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.

   3. 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.