MEDICAL UNIVERSITY OF SOUTH CAROLINA

Human Resources Management Policy

COMPENSATORY TIME

POLICY 10

NOTE: THIS POLICY, LIKE ALL OTHER MUSC HUMAN RESOURCES POLICIES, IS NOT A CONTRACT OF EMPLOYMENT AND SHOULD NOT BE RELIED UPON AS SUCH. THIS POLICY MAY BE CHANGED AT ANY TIME BY THE MEDICAL UNIVERSITY OF SOUTH CAROLINA.

1. POLICY
   1. Non-Exempt Employees
1. Supervisors and managers are responsible for organizing and scheduling work in such a manner as to preclude the need for non-exempt (hourly paid) employees to work more than forty (40) hours in a workweek.
2. When non-exempt employees are required to work more than forty (40) hours in the workweek, they are entitled to compensatory time or overtime pay (See Human Resources Policy No. 11, Overtime).
3. For non-exempt employees, compensatory time is time that is permitted to accrue at a rate of one and one-half times (1 ½) the hours worked in excess of forty (40) hours during a workweek and may be taken with pay at an agreed upon time. Accrual of compensatory time is used in lieu of overtime pay.
4. Overtime work by non-exempt employees must be authorized in advance by the immediate supervisor or manager, and if necessary by the department head. Unauthorized overtime must be controlled. Employees who work unauthorized overtime must receive compensatory time or be paid for the time worked. However, they should be disciplined for working overtime without authorization.
5. The use of overtime work should be the exception to the regular work schedule. Overtime work may occur as the result of an unforeseen event, i.e., a crisis situation or an unexpected temporary increase in the workload.
6. When a manager or supervisor discovers that employees are frequently working overtime, the operations of the department or work unit should be reviewed for possible staffing adjustments.
7. It is the responsibility or each manager and supervisor to ensure that the provisions of this Policy are administered fairly, appropriately and in the best interest of the University.
8. The requirement that compensatory time accrues or overtime pay be paid after forty (40) hours of work in a workweek is required by the federal Fair Labor Standards Act and may not be waived by the employer or employee.
2. Exempt Employees


1. Exempt (salaried) employees are not entitled to overtime pay when they work more than forty (40) hours in a workweek.
2. Exempt employees are authorized compensatory time only for working on official state holidays. Refer to Human Resources Management Policy No. 23, Holidays, for additional information regarding compensatory time for working state holidays.

2. PROCEDURES
1. Overtime work must be authorized by the immediate supervisor or manager and, if necessary, the department head. Supervisors and managers may adjust weekly work schedules to eliminate the accrual of compensatory time or the need for payment of overtime (See Human Resources Management Policy No. 9, Work Schedules, and Policy No. 11, Overtime).
2. Non-exempt employees accrue compensatory time at a rate of one and one-half (1 ½) the hours for each hour worked in excess of forty (40) hours in the workweek.
   
3. The workweek consists of seven consecutive 24-hour periods starting at 12:01 a.m. Sunday and ending at 12:00 a.m. the following Saturday.
4. The maximum accrual for compensatory time is 240 hours, except for non-exempt employees engaged in public safety or emergency response activity who may accrue up to 420 hours.
5. It is the responsibility of supervisors and managers to maintain accurate and complete records on each employee who accrues compensatory time.
6. Once a non-exempt employee has accrued the maximum allowable hours of compensatory time, all subsequent hours worked in excess of forty (40) hours in a workweek, must be paid as overtime. Refer to Human Resources Management Policy No. 11, Overtime, for additional information.
7. Hours worked include all time an employee is required or permitted to work for the employer, including work which the employee performs on or away from the University, if the supervisor/manager knows or has reason to believe the work is being performed.
8. Employees do not receive compensatory time or overtime pay for hours worked between 37.5 and 40 hours in a workweek.
9. The Department of Labor regulations state that compensatory time must not be used as a means of avoiding statutory overtime compensation. Therefore, employees have a right to use their accrued compensatory time and must not be coerced to accept more compensatory time than a manager or supervisor can realistically, and in good faith, expect to grant (29 C.F.R. 553.25(6)).



3. INFORMATION
1. Exempt/Nonexempt Status Under the Fair Labor Standards Act
   1. Exemptions from the minimum wage and overtime pay requirements of the Fair Labor Standards Act (FLSA) applies to employees who are in a bona fide executive, administrative or professional position. All other employees are nonexempt. Exempt status will be determined by the Director of Human Resources Management, or his/her designee, in accordance with the provisions of the Act.
   2. Method of pay, i.e., hourly versus salaried/monthly, does not determine exemption status. Job responsibilities outlined on position descriptions by supervisors and other FLSA requirements are used by the Department of Human Resources Management to determine an employee’s status. Therefore, it is important that supervisors update position descriptions as needed.
2. Minimum Wage
   All nonexempt employees must be paid not less than the current minimum wage.
3. Compensation
   Compensation for all employees is based on forty (40) hours per week or 2,080 hours per year.
4. Overtime
   Overtime is all hours worked in excess of forty (40) hours in a consecutive seven-day work period.
5. Meal Periods
   A bona fide meal period of thirty (30) or more minutes which occurs during the workday and during which the employee is completely relived from duty, is not considered work hours. Non-exempt employees who work during their meal periods (i.e., eat at their desk and still answer the telephones) must be compensated or may receive compensatory time.
6. On-Call
   The hours spent on-call are not regarded as work hours if the employee is not confined to his/her home or a particular place and is only required to leave word where he or she can be reached.
7. Rest Periods/Breaks
   Rest periods of no more than 15 minutes are counted as hours worked. Rest periods are not mandatory and their use is left to the discretion of the department head. However, rest periods cannot be used to offset an employee’s tardiness or leaving early.
8. Leave Status
   Annual leave, holiday leave, sick leave, and other supplemental leave are not considered hours worked.
   
   
4. USE OF ACCRUED COMPENSATORY TIME
   1. Compensatory time should be granted to employees upon request unless the granting of such time would unduly disrupt the effective functioning of the work unit. Mere inconvenience is not a sufficient basis for denial of a request to use compensatory time.
   2. Compensatory time may not be charged when a holiday is observed by the Medical University. If an employee’s scheduled workdays are longer than the allotted holiday times, the employee may use compensatory time for the remaining hours in the workday.
   3. A non-exempt employee requesting time off should choose to use accrued compensatory time instead of accrued annual leave, unless the employee is subject to lose annual leave in accordance with Human Resources Management Policy No. 18, Annual Leave.
   4. An employee who must be absent from work due to a personal illness or the illness of a covered family member may choose to use accrued compensatory time instead of accrued sick leave with supervisory approval.
   5. Employees who must be absent from work due to an approved FMLA absence, after exhausting all allowed sick leave, may choose to use accrued compensatory time before using annual leave. Refer to Human Resources Management Policy No. 35, Family and Medical Leave, for additional information.
   6. Compensatory time earned or used must be clearly indicated on time cards and punch detail reports to ensure employees are paid correctly.
      
      
5. PAY OUT PROCEDURES
1. Upon termination of employment from the Medical University, non-exempt employees shall be paid for all unused accrued compensatory time at the employee’s rate of pay at the time of termination.
2. Upon transfer from an FTE position to a non-FTE position, employees shall be paid for all unused accrued compensatory time at the employee’s rate of pay prior to the transfer.
3. An employee who transfers to another department must be paid for all accrued compensatory time by the department in which it was earned. Such payment shall be made at the employee’s rate of pay prior to the transfer.
4. Compensatory time accrued while working on a grant must be paid out from grant funds within the effective period of the grant. Employees may not accrue compensatory time under one grant and receive payment from a different grant.
5. Upon transfer from nonexempt status to exempt status, non-exempt employees shall be paid for all unused accrued compensatory time at the employee’s rate of pay in the nonexempt position.
   
   
6. RECORD KEEPING

   Each department is responsible for appointing a designee to maintain records of compensatory time accrued and used by the employees of the department, and to keep records current and on file for at least three years. The records must be available at all times for audit by the Medical University’s Internal Auditor, state and federal auditors, the Department of Human Resources Management, and the Department of Payroll. Records must include:

   • A written, signed and approved Compensatory Time Agreement between the employee, the manager or supervisor, the principal investigator (if applicable) and the department head.
   • Number of hours worked over forty (40) during each workweek by each employee.
   • Number of compensatory hours earned each workweek by each employee as indicated on time cards and punch detail reports.
   • Number of compensatory hours used each workweek by each employee as indicated on time cards and punch detail reports.
   • Number of hours of compensatory time paid out, the applicable regular hourly rate, the total amount paid, and the date of payment(s).