Home

Search the
Attendance & Leave
Manual

Instructions

Introduction

Attendance (Part 20)

Absence with Pay
(Part 21)

Leaves Without Pay (Part 22)

Drawing of Earned Credits Upon Separation
(Part 23)

Crediting Other Public Service Employment as State Service (Part 24)

Suspension of Rules
(Part 25)

Applicability (Part 26)


Appendices

A. Civil Service Attendance Rules

B. Calendar of Legal Holidays & Religious Holy Days

C. Alternative Work Schedules

D. Part-Time Employment

E. Seasonal Employment

F. Attendance Rules for Managerial/Confidential Employees

G. Reciprocal Agreements

H. Leave Donation

I. Family & Medical Leave Act

Disclaimer

Top

Attendance and Leave Manual

General Information Bulletin No. 1987-01

Section 23 - Payments for Accruals Upon Separation - September 21, 1987

P-1

TO: All Manual Recipients
FROM: Walter D. Broadnax
SUBJECT: Lump Sum Payments for Overtime Credits

We have received a number of inquiries on the accrual of, use of and payment for overtime credits earned by eligible employees for hours worked between 37 1/2 and 40 in a workweek. This Bulletin confirms the statement on page 3 of Payroll Bulletin No. P-491, September 11, 1986, that there has been no change in the rules for payment for these overtime credits.

Parts 23 and 30 of the Attendance Rules authorize payment of "overtime credits not in excess of 30 days" at the time of separation, upon entry into the Armed Forces or upon movement between State departments. These overtime credits are earned pursuant to Section 135.11 of the Budget Director's Rules and Regulations or Budget Bulletin G-1024, dated July 27, 1986, Section X, items A, B, C and D1, which supersedes Part 135, for hours worked between 37 1/2 and 40 in a workweek. Such overtime credits are earned on a straight-time basis and are not subject to Fair Labor Standards Act (FLSA) requirements on overtime compensatory time which only apply to hours worked in excess of 40 in a workweek. (FLSA categorizes time for hours worked between 37 1/2 and 40 as "other" compensatory time.)

Overtime credits for work between 37 1/2 and 40 hours in a workweek can be retained only until the end of the fiscal year following the one in which they are earned. An employee can receive a lump sum payment at straight-time rates for these overtime credits only under the conditions set forth in the rules.

Compensatory time for hours worked over 40 in a workweek is subject to FLSA regulations, is earned on a time-and-a-half basis and has a 240-or 480-hour maximum regardless of the basic workweek (37 1/2 or 40 hours). In addition, the regulations on earning this time differ from those for time under 40 hours and once an employee reaches the maximum accrual, he/she must be paid for additional overtime hours worked. Finally, the lump sum payment regulations and processing procedures vary. Currently overtime eligible employees designated managerial or confidential are the only people who can elect to receive compensatory time pursuant to Section 207(o) of FLSA in lieu of overtime pay for hours worked in excess of 40 in a workweek.

P-2

Because of the different rules and procedures, it is recommended that employees eligible to earn both types of time record and maintain separately those overtime credits earned for time worked between 37 1/2 and 40 hours and the overtime compensatory time earned under FLSA for hours worked over 40. Consideration also might be given to labeling these two categories of time differently. For example, many agencies refer to the hours between 37 1/2 and 40 as "non"-compensatory overtime and the Office of the State Comptroller refers to hours over 40 as "time and one-half" compensatory overtime.

Top