It is the policy of The University of Texas Health Science Center at Houston to allocate and schedule work appropriately so that classified staff can accomplish their job responsibilities in a standard work week. At times, however, operational demands require that a supervisor request and schedule an employee to work beyond the hours in a standard work week. Employees who are classified as non-exempt are covered by the Fair Labor Standards Act of 1938 (FLSA), as amended, and must be compensated for hours worked over 40 in a standard work week either through granting overtime pay or compensatory time off. Overtime must be approved in advance by the employee's supervisor.
Supervisors of non-exempt employees are responsible for establishing work schedules as well as adherence to federal and state law and institutional policy. This policy applies to any and all hours where an employee is "suffered or permitted" to work in excess of 40 hours in the standard work week.
The provisions of the FLSA, as amended, provide tests for exemption from the overtime requirements of the FLSA, hence, the term "exempt" for positions that meet all of the established criteria in the FLSA. The employee's job classification will determine whether or not s/he is exempt or non-exempt. Positions that do not qualify for an exemption from the overtime provisions of the FLSA are referred to as "non-exempt" (not exempt from the overtime provisions of the FLSA). A list of specific classified job titles and the associated exempt, or non-exempt status of each is provided in the Classified Pay Plan.
A department manager who has an approved or modified budget that includes a dollar amount for overtime is delegated authority by the president and the chief financial officer to authorize payment of overtime for his/her employees. It is the responsibility of the department manager to ensure proper advance approval is obtained and that funds are available and in the correct object within their departmental budget before overtime hours are worked. The signature of the department manager (or delegate) on an employee's time record will constitute authorization for payment.
In all cases, the institutional time sheet or time card for each classified employee will be the official record of time worked and time taken. Appropriate supporting documentation must be maintained in the department for paid overtime or each grant of compensatory time off made to any employee. All classified employees must record their total work week hours appropriately on their timesheets. (Refer to 2.27 Time and Attendance Reporting.)
There is no legal requirement, nor is the institution obligated to pay overtime or grant compensatory time off to exempt employees.
Employees in non-exempt positions must be compensated (either paid or granted compensatory time; also refer to 5.06 Compensatory Time Off) for all hours worked in excess of 40 in a standard work week. If the supervisor decides to pay overtime instead of granting compensatory time off, the supervisor must inform the employee immediately.
Supervisors must grant overtime pay to non-exempt employees at a rate of time and one-half (1-1/2) for each hour worked over 40. In determining total work week hours, all hours a non-exempt employee is "suffered, permitted or required" to work must be counted. Hours not actually worked for which a non-exempt employee is paid, such as holiday, sick leave, or vacation, must be counted in determining total work week hours. However, an employee must actually work in excess of 40 hours in a week (i.e., not including paid leave) before the compensation rate of time and one-half is applied to hours worked in excess of 40.
To identify total work week hours for the purpose of calculating compensation for a non-exempt employee, the following possible scenarios should be considered:
There is no legal requirement, nor is the institution obligated to pay overtime to exempt employees. Supervisors, however, may grant overtime to exempt employees for hours in excess of 40 hours in a work week in which the combination of hours worked, paid leave, and holidays exceeds a total of 40 hours. Compensatory time will be granted judiciously and only on an hour for hour basis.
In some cases, a supervisor may approve compensatory time off (refer to 5.06 Compensatory Time Off) to the exempt employee for overtime the employee may be required to work. There are three situations in which, at the discretion of the supervisor and with the written advance approval of the head of the operating unit, exempt employees may be required to work and be paid for overtime hours they are required to work:
Payment for overtime would be made only when granting compensatory time off is not feasible, and the exempt employee will be paid at straight time. Supervisors must be consistent in applying the guidelines cited previously in this policy throughout their area(s) of responsibility when approving exempt employee overtime, whether monetary or compensatory time off.
Updated 08/05