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Overtime and Compensatory Time Off (CTO)

Overtime

Overtime is defined as authorized time worked in excess of forty (40) hours in a seven (7) consecutive twenty-four (24) hour period beginning at 12:01 a.m. on Sunday and ending at 12:00 midnight the following Saturday. For employees assigned to a 9/80 work schedule, overtime is defined as authorized time worked in excess of forty (40) hours in seven (7) consecutive twenty-four (24) hour periods beginning at 12:01 p.m. on Friday and ending at 12:00 p.m. (noon) on the following Friday. For the purposes of administering a 3/12 work schedule, overtime shall be defined as time worked in excess of eighty (80) hours within a fourteen (14) day schedule. Overtime shall be compensated in cash or in compensatory time off (CTO) as determined by the President and shall be paid only as provided in the Fair Labor Standards Act (FLSA). Employees eligible to receive overtime shall be compensated at the rate of one and one-half times their hourly straight time rate.

All employees shall be classified as either exempt or non-exempt for purposes of compliance with FLSA requirements for payment of overtime or compensatory time off (CTO).

Overtime must be authorized before the time is actually worked. The total hours authorized must be recorded on the form STD 682 and signed by the person authorized to approve overtime work. After the overtime is worked, the actual hours worked are recorded in the last column (do not record the hours at time and one-half). The form is certified by the employee's signature and the supervisor's signature and is then sent to Payroll Services on the posted due date. Record the overtime hours on form STD 634 on line 7H for straight time worked in excess of the employees scheduled work week but less than 40 hours in a work week, on line 7I for premium time worked in excess of 40 hours in a work week and line 7F when CTO hours are being used.

Pay Day:

Overtime is paid on the 15th of the monthly pay period following the pay period in which the overtime work was performed.

Compensatory Time Off (CTO)

Requests for scheduling CTO shall be submitted to the appropriate administrator at least seven (7) days in advance (with the exception of Units 1,3,4, and 8 - see appropriate Collective Bargaining Unit Agreement). CTO shall be scheduled and taken only as authorized by the appropriate administrator. CTO should be taken within the year it is earned whenever possible. If an employee has been unable to take his/her CTO and has a CTO balance in excess of the number of hours allowable in their Collective Bargaining Agreement, he/she shall be paid in cash for all hours in excess of the allowable number of hours in their Collective Bargaining Agreement. Straight time overtime provisions apply to certain classifications (see salary schedule for list of eligible classes at http://www.calstate.edu/HRAdm/SalarySchedule/Salary.aspx

Computing Hours Worked:

In computing and reporting the number of hours worked in a work week, the following rules apply:

1. Paid holidays, paid sick leave, vacation and paid compensating time off are considered as time worked.
   
   
2. The following symbols should be used to identify overtime hours on STD 682:
   
   

   Symbol	Definition
   P	Extra hours worked for cash payment at straight time
   PP	Overtime hours which are paid at premium pay rates (e.g. time and one-half)
   W	Extra hours worked at straight time for CTO
   PW	Extra hours which are to be credited at premium CTO rates (e.g. time and one-half)

   
   
3. The following symbols should be used to identify CTO hours used on STD 634:
   
   

   Symbol	Definition
   WO	WO Overtime hours worked for CTO
   TO	Using CTO overtime hours for absence

   
   
   

Call Back Time:

The majority of the Collective Bargaining Agreements (CBA) follow this rule; Call-Back work is work performed at a time outside of and not continuous with an employee's regular work schedule. An employee called back to work shall receive no less than three (3) hours pay at the overtime rate unless such call-back is within three (3) hours of the beginning of the employee's next shift, in which case the employee shall only be paid for the hours remaining before the beginning of the employee's next shift. (See the appropriate CBA for the actual number of hours the employee will be compensated.)

Earnings Eligibility:

Refer to the appropriate Collective Bargaining Agreement (CBA).

Usage:

To be entitled to use CTO, an employee must be eligible and in active employment status.

CTO Cash Out:

1. The Fair Labor Standards Act (FLSA) and some union contracts require payment of CTO hours, which exceed a certain level.
2. Departments may request payment of accumulated CTO if funds become available after the overtime is worked. To request payment of previously earned CTO, departments should submit the request in writing to the Associate Director of Payroll Services. The memo must include employee's name, SSN, current position number and the number of hours to be paid. (Note: The hours will be paid at the employee's current rate of pay and charged to the 909 blanket serial.)

Separations, Transfers, Reassignments:

Upon separation from State Service employees are entitled to a lump-sum payment for any accumulated CTO hours.

Per FLSA, if the provisions of FLSA are in conflict with the union contracts, the FLSA shall be controlling unless the contract provides a greater benefit.

Unit	Compensation	Ref
R01	Not eligible for overtime compensation	FLSA
R02 R05 R07 R09 C99	For non-exempt employee, "overtime shall be compensated in cash for CTO as determined by the President (or his or her designee). CTO in excess of one hundred twenty (120) hours as of December 31, must be paid in cash for all hours in excess of 120."(Contract) CTO in excess of 240 hours at any time, must be paid in cash, (FLSA)	Article 19 and FLSA
R03	Not eligible for overtime compensation	FLSA
R04	For non-exempt employees, "all overtime hours worked shall be compensated in cash or CTO as determined by the appropriate administrator. Overtime worked beyond the accrual of two hundred and forty (240) hours shall be paid in cash. "When there is no Contract negotiated, ALL OVERTIME MUST BE PAID IN CASH"	Article 28
R06	"All overtime hours worked shall be compensated by cash or compensatory time as determined by the appropriate administrator. All overtime worked beyond the accrual of two hundred and forty (240) hours of compensatory time shall be paid in cash. Shift differentials and the asbestos pay differential, where applicable shall be included in the regular hourly rate of pay. All other payments and allowances are not included in the regular hourly rate of pay." CTO in excess of 240 hours at any time must be paid in cash. (FLSA)	Article 23 and FLSA
R08	All overtime hours worked shall be compensable by cash or compensatory time off, as determined by the Chief of Police." (Contract) CTO in excess of 480 hours at any time must be paid in cash. (FLSA)

Required Forms:

• STD 634 Absence and Additional Time Worked Report
• STD 682 Authorization for Extra Hours

Attendance Recording:

State and Federal laws require that all CTO be recorded. Failure to report CTO could result in substantial fines to the campus.

1. When an eligible employee earns CTO, on line 7H on form STD 634, enter "WO" and the hours the employee worked. If the employee is eligible for time-and-one-half, then the Payroll Office will do the conversion. (Note: The reason for the overtime must be stated in section 8.)
2. When CTO has been used for time off, on line 7F on form STD 634, enter "TO" and the hours taken.

Information presented is for educational purposes only. The most current labor contracts, State Administrative Manual or other sources contain the updated official rules, regulations and policies.

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