Overtime Policy for Non-Expempt Employees

TO: All Employees
FROM: Amy Diamond Barnes, Executive Director of Human Resources
DATE: April 11, 2008
SUBJECT:Overtime policy for non-exempt employees

I am writing to notify you of a change to the University's policy on overtime and compensatory (comp) time. Department of Labor regulations specifically state that employees should receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. They go on to say that these regulations generally apply on a workweek basis. In an earlier communication, you were told that non- exempt employees could be allowed to take comp time off at a rate of time and one-half for each hour worked over forty in a workweek instead of receiving overtime pay, but only if the time off was taken in the same pay period. The requirement that comp time hours be taken in the same pay period is a restriction imposed under federal law by the Department of Labor on private employers only (public employers are not bound by these regulations and are permitted to allow their employees to accumulate comp time).

Because the restricted use of comp time is very difficult to administer in a fair and consistent way, most private employers do not grant comp time at all. At W&L, many departments have opted to pay overtime to employees given the difficulty of scheduling comp time within the same pay period. In an effort to ensure that all non-exempt university employees are compensated appropriately and fairly for their actual hours worked, effective April 12 all hours in excess of 40 in any workweek will be paid at time and one-half and comp time will no longer be used. Employees who are regularly scheduled to work less than 40 hours per week will receive pay at straight time for additional hours worked up to 40. Please note that vacation, holiday and sick time will count toward the total hours worked in each week.

I hope that this clarification resolves any confusion about the compensation issue. Please contact Human Resources with any questions about this change.