Library: Policy

OKDHS:2-1-30. Overtime compensation and record keeping

Revised 10-1-10

(a) Compensatory time. It is the policy of the Oklahoma Department of Human Services (OKDHS) to use compensatory time in lieu of overtime payment for non-exempt employees except in resource centers and other residential care facilities. Local administrators establish and implement guidelines for how non-exempt employees utilize compensatory time.

(1) Limits. When workweek adjustments are not possible within the workweek, compensatory time is granted in lieu of overtime payments, provided:

(A) compensatory time not used within 180 days of the pay period it accrued is paid at the appropriate overtime rate; and

(B) compensatory time in excess of 240 accrued compensatory hours (160 hours worked) is paid at the appropriate overtime rate.

(2) Requirements. Compensatory time is requested and approved in the same manner as annual leave. Supervisors approve employee requests to use compensatory time unless the requests disrupt OKDHS operations or endanger public health, safety, or property.

(A) Employees are responsible for making requests for use of compensatory time within a reasonable time period of the date it was earned.

(B) Accrued compensatory time must be used prior to any approval for annual leave unless such use would result in the forfeiture of annual leave due to accrual limitations as provided in Merit Rules.

(C) Except for employees in group home, residential facility, or resource center settings where 24-hour care, monitoring, or supervision is required for clients or residents, supervisors may require non-exempt employees to use accrued compensatory time when determined by the supervisor to be warranted or appropriate.

(3) Rate of calculation.

(A) Compensatory time at the rate of time and one-half is granted to non-exempt employees for all time actually worked in excess of the regular 40 hour week.

(B) Hours in any type of leave status, with the exception of jury duty per Merit Rule OAC 530:10-15-46 and OKDHS:2-1-50, are not included in the computation of hours worked for purposes of determining hours to be compensated at the premium rate of time and one-half.

(C) Employees whose total hours for a workweek, including leave time, exceed 40 are given compensatory time on an hour-for-hour basis for hours in excess of 40, so long as the actual time worked does not exceed 40 hours.

(D) When the hours actually worked exceed 40 and the total hours for the workweek include leave time, overtime hours are computed at the time and one-half rate, with additional leave time computed at the straight time rate.

(b) Payment for compensatory hours. Payment for compensatory hours is made at the employee's regular rate of pay at the time of payment. Non-exempt employees receive payment for compensatory hours earned in excess of 240 hours, and for compensatory hours not used within 180 days of the date of accrual.

(1) A non-exempt employee who has accrued compensatory hours and is transferred or promoted to a different position or classification may be paid for the compensatory hours prior to the effective date of the promotion or transfer, or allowed to carry the compensatory hours over to the new position or classification.

(A) The reviewing supervisor and local administrator are responsible for determining the number of compensatory hours accrued and the rate of pay for the new position or classification and making a recommendation to the appropriate division director whether payment should be made.

(B) When the promotion or transfer involves reassignment to another division, the transferring division director ensures the receiving division director is notified of the number of accrued compensatory hours prior to the effective date of the promotion or transfer.

(C) Any disputes concerning the transfer or payment of accrued compensatory hours are submitted to the appropriate officer or division director for decision.

(2) A non-exempt employee who terminates employment with OKDHS is paid for all accrued compensatory hours at the rate of pay at time of separation or the average regular rate for the preceding three years, whichever is higher.

(c) Overtime pay. Overtime pay in lieu of compensatory hours for non-exempt employees requires the approval of the Director and is granted only in exceptional circumstances. Managers and supervisors request and receive approval from the Director prior to authorizing non-exempt employees to work the overtime for payment. Managers and supervisors are responsible for ensuring that overtime payments are minimized. Overtime payment is made by entering the overtime hours into the timekeeping system, except situations requiring submission of Form 10PL003E, Overtime Wage Exemption Claim, to the Finance Division Payroll Unit.

(1) The overtime rate of pay, as applicable, for individual employees is composed of:

(A) regular base pay (BP);

(B) pay differential(s) (PD);

(D) longevity pay (LP).

(2) All forms of pay must be converted to an hourly rate prior to inclusion in the overtime pay formula. The formula used to determine the overtime rate of pay is (BP x 1 1/2) + PD/2 + CP/2 + LP/2 = Overtime Rate.

(3) Employees authorized to work overtime on a volunteer basis and performing duties outside their current job family descriptor and level are compensated at the established rate of overtime pay for the type of work performed.

(4) The Executive Branch of the State of Oklahoma is one employer for FLSA purposes; therefore, concurrent employment in more than one agency is considered joint employment. Employees working in one or more nonexempt positions in Executive Branch agencies, and who work more than 40 total hours per week, are eligible for overtime. An OKDHS employee may not be employed by another state agency without the prior written approval of the employee's division director. It is the responsibility of all agencies involved to ensure that all FLSA requirements associated with multiple agency appointments are met.

(d) Record keeping. To ensure full compliance with the Fair Labor Standards Act (FLSA), it is essential that accurate and complete records are maintained and accurately reflect all time worked by employees.

(1) Form 11AD005E, Daily Time Sheet/FLSA Non-Exempt Employee, is used to record all time worked by non-exempt employees and is a precise and accurate record of all time worked.

(2) All non-exempt employees are responsible for completing Form 11AD005E truthfully and accurately. Failure to do so may subject an employee to corrective discipline.

(3) Form 11AD005E is not used by exempt personnel.

(4) A memorandum which documents and explains any unauthorized overtime work must be submitted to the local administrator with Form 11AD005E. The local administrator is responsible for ensuring that corrective action is taken to prevent unauthorized overtime work.

(5) Compensatory time is entered on the OKDHS time/leave system as it is accrued and taken, in accordance with instructions issued by the Finance Division Payroll Unit.