Compensatory time is defined as time off with pay that is granted in lieu of overtime pay for authorized overtime. Compensatory time applies to both exempt and non-exempt employees; however, the provisions for compensatory time for non-exempt employees are mandated by the FLSA and differ from the guidelines for exempt employees.
All compensatory/overtime work should be held to a minimum and should be authorized in advance in writing by the appropriate administrator. Each supervisor is responsible for and expected to use good judgment in determining what constitutes legitimate and necessary compensatory/overtime work. In unusual situations in which prior approval may not have been practical or possible and the required completion of a specific project, assignment, or official travel results in overtime or compensatory time worked, the appropriate supervisor may verbally approve the unauthorized time based on the circumstances involved, but it should be documented in writing within a reasonable time period (four days).
Non-exempt employees are subject to the overtime provisions of the Fair Labor Standards Act (FLSA) and are entitled to compensation for overtime as provided by FLSA and this policy.
A non-exempt employee who is required to work hours in excess of 40 hours in a work week is entitled to compensation for the excess hours either by: (1) allowing (or requiring) the employee to take compensatory time off at the rate of 1-1/2 hours off for each hour of overtime or (2) at the discretion of the employing department, in cases in which granting compensatory time off is impractical, the employee’s receiving pay for the overtime at the rate equal to 1-1/2 times the employee’s regular rate of pay. See TAMU System Regulation 31.01.09–Overtime for further details.
An employee who is exempt as an executive, professional, administrative employee, or skilled computer worker under the FLSA may be allowed compensatory time off during the 12-month period following the end of the work week in which the overtime was accrued, at a rate not to exceed equivalent time. See TAMU System Regulation 31.01.09–Overtime for further details.
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